Can someone double check some figures?

swag23

I do have an independent mortgage advisor, and I have emailed him to clarify, however my husband is deploying for 6 months on Monday and don't want to spend the weekend worrying.

Situation is husband earns £25,000 basic, we have seen a property for £90,000, we have £12,500 deposit. Husband is applying in his own name, 5 dependants (myself and 4 children). Outstanding balance on credit card £3.5k. We also get £8,500 in tax credits. Mortgage advisor approached Nationwide and it was declined on affordability, however if we could raise another £8k they could do it. He has spoken to Halifax today who have said if we clear the c/c balance then it will pass affordability with them.

I have gone onto both calculators and even with the outstanding card balance they both say they are willing to lend a lot more then we need. I'm thinking that he's not included the tax credits when keying in the information. Would someone be able to double check?

Many thanks

ACG

Who do the tax credits get paid to?
If they get paid to you and your making an application solely in your husbands name then that would be why they have not been used.

Why is it a sinlge application and not joint?

swag23

Tax credits are paid to both of us, but into my husbands bank account. It is a sole application due to previous issues regarding my ex. The only reason I can think they've been left off is that he forgot? He came to see us about 6 weeks ago and took all the details, however we only found a property and put things in motion a week ago.

Thank you.

ACG

I didnt even think Nationwide did single applications for married couples to be honest.

Also its not a given tax credits are taken into account, if the children are around 12+ it could be lenders are reluctant. You really need to speak to your broker I think.

swag23

The broker spoke to a business manager at nationwide before he went for a DIP, all children are under 12.

I'm hoping the broker checks his e-mails tonight to save us having a nerve wrecking final weekend together.

Thank you for taking the time to reply.

ACG

I would not worry as it seems even if nationwide and halifax do not lend what you need, im sure with the tax credits as described there will be options.

amnblog

An application in your husbands name only may mean the lender will not consider the tax credits.

Second guessing the calculations your broker has made is a dangerous game and it is unlikely you have it right and he has it wrong.

The situation is not helped by you being given a running commentary by the broker on which lender is calculating at what level and why.

Naturally this leads you to second guess the calculations.

The smart thing to do is to establish the best lender and option and present it to the borrower. Not to talk about options that 'do not exist'.

stephenni1971

If he earns £25,000 and you have £12,500 deposit I'm assuming you are using Forces Help To Buy?

Please make sure the broker is declaring the repayments on this ( Which will be about £105 pm ) as a commitment as it will be taken into account by the underwriter when doing any detailed assessment.

He may well already have done so but I've encountered a lot of civilian brokers who don't realise this and it only comes back with a query from the lender.