Wondering how much will be lended

phil22

Me and my partner are starting to save for a deposit already know the new builds local to us we wish to live, but are so worried about what we will be lended , im part time he is full and has a few extra jobs we both get commision etc but how reliable are the mortgage calculators on websites, are they genrally good or unreliable? And im a bit confised with help to buy, say a property is 143k, then you have 7k deposit, does help to buy knock 20 percent off so your mortgage is only for 115k minus 7k deposit? I am more positive we would pass for that but mot the full 142 k which i believe you do have to pass for the full amount? I just dont get it i have read the websites but find it not straight forward, any help would be appreciated! Thanks

phil22

oh and my partner does have some debts which i know he is paying off slowly. i checked my credit score which was 3/5 which is borderline poor/fair but im surprised as iv never been in the red or debt or missed any payments or anything so i will need to improve that,sadly my partners is 1/5 ! got no hope for a mortgage lol

libf

Those numbers on credit scores don't mean anything, as lenders review your file and then score according to their own criteria. You need to look at all three reports; Experian, Equifax and Callcredit/Noddle. Thinks that will cause problems are defaults, CCJs and large outstanding balances. Show these to a broker and if there are problems you may have to use a lender who deals in adverse rather than a high Street bank, which may mean higher rates.

There are Help To Buy calculators on most builders websites. For a new build priced at £143k:

5% deposit: £7,150
20% Help To Buy loan: £28,600
Mortgage required: £107,250

So you'd need a joint income of circa £27k, and to pass affordability with the help to buy loan payments from year 6 factored in.

Best to discuss your situation with a broker to find out your options.

phil22

Thanks , we fall just short of that joint income at about 24k but then commision for me ontop would add upto about 26k maybe if we try get a few more thousand deposit, checked noddle for us both. Its so stressfull isnt it lol

socmwils23

I would advise contacting a broker and seeing what they say. They should be able to give you an idea of the figures you could get.

My process was as follows:

Contacted broker to see what was a realistic figure for a mortgage. He took our details and quoted us a figure that should be obtainable.

We sold our house then placed an offer on one to buy which was within figure given by broker.

Made application for mortgage through broker who did a more detailed analysis and helped us with our application.

A good broker would be able to match your personal circumstances with a lender and take a lot of the stress involved away.

phil22

So they just advise u before they get a mortgage and tell you who will be better, when we went around the showhone we liked over the weekend they gave us someone to ring for mortgage advise, is it worth doing it now even if we dont have the deposit yet were starting to save for it, il do anything to get this house i hope we could afford it hahax, would that 27k be before or after all your outgoings

phil22

One minute im positive about it then the next im not haha