Mortgage on mat leave and disposable income

Mr_Potato · 25 October 2015 at 9:23AM

We have found our dream house and awaiting final paperwork to get an AiP.
This house was found slightly sooner than expected and before I started being more "sensible" with money. As a background I have an excellent credit history, never been overdrawn on current account etc. Our LTV is about 22%.

I am currently on mat leave, my OH and I do not currently pay rent or mortgage and so have a high amount of disposable income. We have been enjoying our money without budgeting, knowing that soon enough we'll need to rein it in, which we can easily do also. Unfortunate his credit history isn't so great, history of default (2011, satisfied last year) and previous use of payday loans a few years ago. Things are much better financially now, hence enjoying our money and spending what we earn. My income is currently reduced due to mat leave, but we have proof of full income from my employer which the mortgage company have requested.

After that essay, I guess the question is, are we likely to get a mortgage?! Our broker has provided a KFI, fully aware of our credit history but not in the knowledge of our outgoings.

libf · 25 October 2015 at 9:40AM

If you want anyone to take a guess then mentioning the lender would be a good idea. It'll still be a guess though.

Make sure your broker is in possession of all the information he needs to select the right lender and then trust that he knows what he's doing. Or find a broker you do have confidence in.

Jess716 · 25 October 2015 at 10:07AM

I'm on maternity leave from part-time work and my husband is self employed. we weren't planning on getting a mortgage either so have been spending our disposable rather than being careful. My husband also has a default from a few years back and also payday loans dating back about 5 years, we've just recieved our mortgage offer from nationwide. So I definitely think you've got a chance

Mr_Potato · 25 October 2015 at 2:23PM

In view of credit history the lender is precise mortgages. I know they are not fussy with credit history, just concerned about the affordability. Our broker is fab, and I do have confidence in him, I'm just anxious as I love this house!

Jess716 · 25 October 2015 at 2:26PM

As long as you aren't spending beyond your means and your actual committed outgoings aren't taking up all your money then I can't see it being an issue

Mr_Potato · 25 October 2015 at 2:33PM

Thank you jess! Fingers crossed.

Jess716 · 25 October 2015 at 2:42PM

Got them crossed for you. Keep us updated x

amnblog · 25 October 2015 at 7:21PM

Surely the broker understands your outgoings prior to recommending a provider and product?

Mr_Potato · 26 October 2015 at 4:33PM

We went through committed outgoings and I did mention about my disposable income but he didn't have everything paperwork wise yet. He now does, we have put DiP and the full application is in. Cue more stress and worry!