Is it possible to borrow?

keira1234

Me and hubby have found a property and are using an L & C broker to find a mortgage. The property is for sale for offers over 170k.

These are our current income details...
Ap 1 emp inc £26875
Overtime £4500 (evidence on p60 and current payslips

Ap 2 housewife
Tax credits £1300
Child benefit £1750

There is 5k on credits cards and 2 dependants.

Our broker has told us he thinks we could borrow about 145k with natwest if we put down a 10% deposit. This will leave us about 8k short...

For various reasons I have lost confidence in this broker so just wanted to ask here. Does anyone know of any lenders that may be willing to lend more than this? When the initial 2 year fixed expires ap 2 will be returning to work full time.

audigex

You may find someone, but considering you have no employment income and £4.5k of his is presumably not guaranteed, I'm slightly surprised you've even been offered 145k.

I'm definitely no expert, but I would have expected most lenders to top out somewhere between £81k and £130k.

Malmo

Have you input your household income and details into various lenders affordability calculators to get an idea of what you might be able to borrow?

amnblog

keira1234 wrote: »

Me and hubby have found a property and are using an L & C broker to find a mortgage. The property is for sale for offers over 170k.

These are our current income details...
Ap 1 emp inc £26875
Overtime £4500 (evidence on p60 and current payslips

Ap 2 housewife
Tax credits £1300
Child benefit £1750

There is 5k on credits cards and 2 dependants.

Our broker has told us he thinks we could borrow about 145k with natwest if we put down a 10% deposit. This will leave us about 8k short...

For various reasons I have lost confidence in this broker so just wanted to ask here. Does anyone know of any lenders that may be willing to lend more than this? When the initial 2 year fixed expires ap 2 will be returning to work full time.

You are right to be cautious. Your broker is misinformed.


You will be lucky to borrow more than £115,000.


Your tax credits also do not seem to fit with the earned income stated.


Nat West say


Only income which can be termed as 'guaranteed' is to be entered e.g. basic gross salary from primary employment or if self employed, average gross earning over the last 2 years. Bonuses, overtime etc are not guaranteed and must not be included - we may take them into consideration upon receipt of the application . No state benefits are permitted.

keira1234

Thanks for that amnblog. He gave us that figure and told us to go away, offer on a house and come back to him. I'm glad I've looked into this further before offering.

Any advice on how to proceed? Should I go elsewhere of go back to the broker to clarify?

Landofwood

I didn't realise tax credits and child benefit could be used as income for a mortgage application. Is that correct?

betmunch

Landofwood wrote: »

I didn't realise tax credits and child benefit could be used as income for a mortgage application. Is that correct?

Depending on the lender you can use these incomes.


Anywhere between 0% and 100% could be considered, again, depending on the lenders view on them.

Malmo

Landofwood wrote: »

I didn't realise tax credits and child benefit could be used as income for a mortgage application. Is that correct?

There are lenders that accept tax credits and/or Child Benefit. Not all though.

amnblog

keira1234 wrote: »

Thanks for that amnblog. He gave us that figure and told us to go away, offer on a house and come back to him. I'm glad I've looked into this further before offering.

Any advice on how to proceed? Should I go elsewhere of go back to the broker to clarify?

I would work solely off of the brokers first suggestion ('go away'), and find someone who knows what they are doing.


If you want a lender to consider your tax credits, the earned income figure on your award statement must be accurate - it seems to me your's will not be.

brittany_191

keira1234 wrote: »

Thanks for that amnblog. He gave us that figure and told us to go away, offer on a house and come back to him. I'm glad I've looked into this further before offering.

Any advice on how to proceed? Should I go elsewhere of go back to the broker to clarify?

L&C also told us to do this. When it come to apply they were taking ages to reply to emails ect so we found a local broker.

He struggled to get us a DIP even though l&c had already given us one. He said they did no credit checks and it was just a generic letter from them to say how much they thought we could borrow not how much a lender would agree too.

Thrugelmir

[QUOTE=keira1234;68298552

Any advice on how to proceed? Should I go elsewhere of go back to the broker to clarify?[/QUOTE]

As Malmo suggested put your details into the online calculators.

At 90% LTV. £5k of credit card debt may prove a hindrance. For many reasons, not just obtaining a mortgage. Tackling this should be a priority in terms of your personal finances.