Depressed, mortgage sourcing!

minimike2

GRBWA is right with

"Many lenders will accept your "savings" as a deposit even with large amounts of debt. The debt is simply factored into the affordability calculations."

Although there is no need to " " the savings if it is actual savings....

Plenty of people have both savings and debt. As long as the deposit has genuinely come from savings then it's not an issue - The debt is taken into account for affordability / multiple purposes. Working out the net capital position is irrelevant.


There may be the odd exception, like tiny building societies with funny lending rules, but on the whole it doesn't work that way.

GRBWA

Why would I do that? I like some of your posts and you are sometimes helpful but sometimes think you go out of your way to take the moral high ground to people without knowing anything about them and you often contradict the view of experienced mortgage brokers whilst doing so,

You inferred that you were all knowing about all lenders underwriting approach. I pointed out that people do get mortgages with a similar set of stats to that of the OP. No offence had been taken.

Landofwood

Thrugelmir wrote: »

Well you learn something new everyday. I look forward to being enlightened further.

I assume by the wink you are being disingenuous, which is disappointing.

You are also entitled to your "personal view", but your personal view can also be wrong. I imagine you're 65+ and stubborn as a mule, so I don't anticipate you being willing to accept anything other than your outdated and inaccurate views.

csgohan4

Getting back on topic, the OP needs to get a broker as their situation is not clean cut. Especially with loans and late payments

Jon_B_2

I fear we are not being told all the facts. Despite the high debt - the deposit is strong and seems within affordability.

Do you have any kids - childcare? Student loans?

There must be something else we are not privy to.

fairyloveheart

Thank you.

No other issues. Two late payments on a next account in the last 4 years but a few days late. 35k deposit is equity in current house so not savings sitting separately anywhere - if I had savings, I would have paid off the debt (25k extra equity and additional for stamp duty and fees)

Checked credit files and there are no errors. Admittedly in hindsight I should have asked my parents to pay off the debt temporarily months ago and then it would have been settled on the credit files.

Both of us have been in same job for 10 years plus.

Debt is in both our names but more in mine. Not for any particular reason other than some shifting to 0%s in the past. My score was 990 until I applied for a debt consolidation loan about three months ago and it dropped.

They have all said affordability is fine - it's the credit score.

1 child, no childcare costs. No student loans. Paid off 10 years ago.


The broker has now contacted nationwide as he doesn't understand why they have referred us.

Thrugelmir

Are you looking to fund the move totally out of equity from your existing property, i.e. you have no actual savings.

fairyloveheart

Yes. We will then only have the mortgage payment and be able to overpay to try and counteract the affect of using some equity
Thanks

Thrugelmir

fairyloveheart wrote: »

Yes. We will then only have the mortgage payment and be able to overpay to try and counteract the affect of using some equity
Thanks

Hardly a straightforward mortgage application hence the referral.

In an attempt to summarise. My assumptions are:-

Purchase price around £315k

LTV 90%

Mortgage plus HTB is a 4.66 multiplier on your incomes. (Which must be close to NW's internal limits).

Release £40k (?) of equity (to clear unsecured debt and cover total costs of move).

mrginge

25k of credit card debt for 'no particular reason'

Perhaps the lender is concerned that you will simply run up another load of debt and not have the bail out of equity release available?
Your track record doesn't look particularly appealing for a high ltv.