Is this realistic?

NatashaP

My hubby and I have a combined income of about £32,000 p/a and pay out just under £400 a month in credit cards/loans (all finishing next year). We are a 'near-prime' case according to our IFA (recent credit history fair, but a CCJ from 2004 for £377 - paid, and a couple of defaults from 2004 and one beginning of this year).
We would like to borrow £136,000 (we have 5% deposit) and already have an AIP with one lender. Is this realistic? Should we trust our IFA and carry on with the full application and hope for the best, or are we wishful thinking? On all the online calculators I've used it seems we would be lucky to get anything over 100k.

dwsjarcmcd

Natasha, If your adviser says s/he has an AIP then they will have a copy, which you should ask to see. In essence, you are looking to borrow 5 x joint salary after your c/c payments (almost) which does seem a lot, particularly in today's climate, and at 95% Loan to Value. I have to say that seems very high to me (actually scarily high, if I'm honest)

You also say your joint income is £32k, if any of that is made up of overtime/bonus/commission, then that would reduce your borrowing capability if it's not guarenteed.

What type of product are you looking at (fixed/tracker etc), what level of fees/rate?

David

homer_j_3

some lenders will not take into account your credit card debt and it will be possible to lend you that kind of money.

You need to really budget properly though as what you can borrow and afford are often two very different things.