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Large Mortgage App Now or wait a few more months

edited 30 November -1 at 1:00AM in Mortgages & Endowments
8 replies 812 views
TravelBugHappyTravelBugHappy Forumite
88 Posts
edited 30 November -1 at 1:00AM in Mortgages & Endowments
Hi - Im new to the site but have been lurking for some time and know how great the advice is here - hope somebody can help - were wondering whether we would qualify for a large mortgage now or would need to wait a while - here's our circumstances:-

Husband
Salary - 55k
Bonus Total - 30k (paid monthly)
Shares total price if sold today 20k
Car Loan 20k pays 393 per month, balloon payment 9k at the end

Me
Salary 9k

2 kids, no childcare cost but travel costs total £200 per month.

We have paid off all credit cards (no late payments for my husband BUT I have late pays showing on a Catalogue account 5 1/2 years ago - credit file shows 1 2 2 then back to normal again).

We have saved £21k for a deposit and would like to buy a house of £320,000 using a 5% deposit on the government scheme (£16,000) - are we asking too much on our salaries? would mortgage providers include my husbands bonus in there calculations - should we wait 6 months so the late payments drop off my credit file? (to clarify the account did not default... Thanks in advance

Replies

  • Oops sorry I forgot to add that I have found a broker - she was recommended to us but she charges £400 and I didn't want to pay that just yet if the mortgage is not possible - hence my post
  • squeekssqueeks Forumite
    309 Posts
    Find a fee free mortgage advisor if the cost is your main concern.

    As always, being debt and default free is the best position. The loan repayments will count against your affordability. Having defaults on file will restrict the products available to you and will cost you with higher rates. Try out some of the online calculators available on most of the lenders websites.

    Other concern for me would be your savings being in shares. If you are getting close to wanting to purchase, it would be good to sell up as shares fluctuate so you know exactly how much you have to play with - remember there are fees and costs associated with moving.
  • The shares are seperate to our deposit but we would prefer not to cash them in - thanks fpr your advice
  • ThrugelmirThrugelmir Forumite
    81.6K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    ✭✭✭✭✭✭
    The "bonus" is a high proportion of your total income. That fact sticks out.
    It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
  • Your right Thrugelmir and that is our concern - although he does have a reasonable salary too.

    We may look for something smaller or at least see the bank first and see what they say - we're completely new to home buying.
  • ps - do you know whether it would help that he has 2 years pay slips showing the same (nearly) total bonus amounts
  • squeekssqueeks Forumite
    309 Posts
    It will all depend on the lender. Some will take 50% of the average bonus over several paycheques.

    You really need to find a mortgage broker, or start getting some idea of which products you like the look of. Then you can go through the lenders affordability calculators and lending criteria to see if you can find a match that will work for you.
  • Great advice & I probs knew that but was stalling - thank you
This discussion has been closed.
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