My offer has been accepted. What are my chances now?

heytoki

Hello all,

Finally, i have an offer that has been accepted

Solicitor has been instructed and documents sent to my mortgage broker.

i am meeting him on Saturday to talk about the mortgage product will be appliying for.

Now the fears of being first buyers are coming up to my mind and the biggest one is if my mortgage will be granted.

i believe that my mortgage broker will reply to my questions but as i am exicted i wanted to share and raise a few questions about my chances to be sucessful considering my options.

From your experience or for what you have seen, what do you think about my situation?

i will put 40% as a deposit.
I dont have any loan or any standing debt.
Never being in overdraft and never owed any money in my life.
i am registered in the electorall roll.
i have a full time contract and being in the company for 5 years.
Last time i checked my credit rating was around 800 with experian and my situation hasnt changed since then (always using the same credit card and always paying the balance on time).

My salary now is £1,630 a month and will be £1,700 from April.
How much money left i need to meet the criteria of the lenders (after paying mortgage, service charges, etc)?

Thanks

stator

They will work out how much your mortgage payment would be if interest rates went up by X amount and see if you could afford that payment from your income.
You haven't said how much you are borrowing but everything you've said so far sounds good.

heytoki

stator wrote: »

They will work out how much your mortgage payment would be if interest rates went up by X amount and see if you could afford that payment from your income.
You haven't said how much you are borrowing but everything you've said so far sounds good.

i am borrowing £112k. Do they consider as well that my salary can go up? i have been asked for my last two P60s so they can see the increase...

My concern is that the service charges could be a little bit high (£1,600 a year, ground rent included).

From previous posts people put here, apparently the best mortgage offers are when you put down 40% as a deposit. Is that correct?

stator

Unless you have it in writing they wouldn't consider your pay increase until you actually have it.

£1,600 is quite high, what does that include?

Yes 40% is plenty to get a great deal.

If you have zero credit history this might count against you, have you got any credit cards that you pay off in full every month?

heytoki

Actually my salary will go up from £20,277 to £21,189 (4.5% rise). Effectivefrom April so the first payslip it will be the 30th of April. I have a letterfrom my employer about the pay rise.

Apart from my salary i recieve £350 a month as bonus which is 4,200 a year.I have received this bonus for the last 3 years and it should remain the same.

I have just one credit card and paying off in full every month so i dontknow why my credit score is not excellent ( it is around 800 which shows asgood). i was advised that another credit card should boost my rating. However,i dont think it is sensible to apply for one now...

Landofwood

Your broker will look for lenders that will consider your full bonus, otherwise affordability multipliers are very tight.

Let_Us_See

Your 40% deposit is a big plus, but have you made an offer before considering affordability? Borrowing £112,000, even on your higher salary isn't going to happen, and even taking into account your bonus, it is still going to be tight as many lenders will only consider 50%. Good luck.

Landofwood

Let_Us_See wrote: »

Your 40% deposit is a big plus, but have you made an offer before considering affordability? Borrowing £112,000, even on your higher salary isn't going to happen, and even taking into account your bonus, it is still going to be tight as many lenders will only consider 50%. Good luck.

Indeed, making an offer and instructing a solicitor seems premature.

heytoki

Landofwood wrote: »

Indeed, making an offer and instructing a solicitor seems premature.

I had an AIP made in November for 110k and it was when I did the affordability test. i was waiting to do a new AIP( as it has expired)when my pay raise were effective in April. But last Saturday I went to see this property and put an offer taking into consideration that I coul borrow 110k. The agent told me that 2k more woild close the deal so I contacted the mortgage broker and asked him if I would be good for 112k borrowing. He said yes and put the offer. So I passed my solicitor details and meeting the broker on saturday to discuss the best product...

Landofwood

heytoki wrote: »

I had an AIP made in November for 110k and it was when I did the affordability test. i was waiting to do a new AIP( as it has expired)when my pay raise were effective in April. But last Saturday I went to see this property and put an offer taking into consideration that I coul borrow 110k. The agent told me that 2k more woild close the deal so I contacted the mortgage broker and asked him if I would be good for 112k borrowing. He said yes and put the offer. So I passed my solicitor details and meeting the broker on saturday to discuss the best product...

I'm sure your broker will be able to find you a mortgage, all the best.

heytoki

i have passed the initial check and got the AIP for the new amount i need to borrow.

It has been with Natwest as they are happy to consider 100% of my bonus.

All the documents required from me have been sent now.....