Advise please - just been turned down for house move mortgage

splatt30

I have spent most of the morning on the phone to my current lender (first direct). We have had an offset mortgage with them for 7 years.

I have got a new job and we are therefore relocating 130 miles up to Yorkshire.

We are looking to buy a house at 275k with a deposit of 100k (<65 LTV). My current salary is 66k and increasing to 75k. My husband is self employed part time and earns 4-6k but we haven't taken this into the mortgage calculations as he will have to build his business up again once we move.

So FD say once I have started my new job and have a payslip they would lend us the money, but currently based on my current salary they won't. (Infact they would only lend us 85K, they currently lend us £120k). The fact that I can't start my new job without moving house is clearly an issue for us.

I know the criteria has changed but my take home pay will be about £300 per month more, I will be spending about £150 less on diesel and the monthly repayments are £60 less than we currently pay. How is this not affordable??????

cakeforbrains

The figures certainly don't look right from my extreme-novice eye. Hopefully somebody who is more in the know will come along soon.

Do you have any other commitments like childcare or debts?

Is it a possibility for you to lodge in Yorkshire for a few months and then sell the house? Or to sell and go into rented accommodation as a family/couple, and then buy in 6/12 months time?

splatt30

We have 2 children and 2 dogs. I'm not sure we'd find anywhere to rent with the dogs. Plus my daughter starts school in September, she will then move in Nov/Dec to a new school. I don't really want to move her again 6 months down the line.

We have buyers for ours and have an offer accepted on a new house. The online mortgage calculators suggest I should be able to borrow unto £250k based on just my current salary and we don't want anywhere near that. Our childcare costs with be £250 per month come September.

I am genuinely little shocked and very worried. We have no other debt and I have a 997 credit rating (for what that's worth)

justcat

Can you not just go with a broker to find a new mortgage provider? I'm sure there's a lender out there who can do it!

splatt30

I have spoken to my IFA and he is looking into it.
He was equally shocked. I went to FD as ideally wanted to continue with an offset.
I guess the whole thing has just scarred me that no one will lend us the money

catieeb06

Sounds like one for a broker.

FD are part of HSBC and are known for being a bit tricky in terms of loan amounts. I personally tried them and they would offer me £90,000, the mortgage lender I went to offered me £180,000.

Are you tied into a rate with First Direct?

saverbuyer

I thought FD were direct only. I thought you couldn't;t go through a broker?

kingstreet

saverbuyer wrote: »

I thought FD were direct only. I thought you couldn't;t go through a broker?

That's correct.

That's why the suggestion is to abandon the FD option and talk to a broker.

andyfromotley

Loads of place will rent to you with dogs, and even children! Just rent somewhere in the rough area you want to live and there will be no 2nd change of school required. Living somewhere for 6 months can often result in a much wiser house purchase in the long run.

splatt30

catieeb06 wrote: »

Sounds like one for a broker.

FD are part of HSBC and are known for being a bit tricky in terms of loan amounts. I personally tried them and they would offer me £90,000, the mortgage lender I went to offered me £180,000.

Are you tied into a rate with First Direct?

Thank you. That makes me feel a bit better. Not tied to FD, just had until today been really pleased with the service we'd received from them and wanted to continue to offset all our accounts against the mortgage rather than be swapping and changing for savings/bank account interest rates. But never mind. IFA is onto it.