Is a mortgage achievable?

fairyloveheart

We have 25k total debt (which will be cleared on existing house sale from equity) and combined salary of 70K and wanted to borrow 220K (HTB 60K, deposit 35K) and we were declined by TSB, only allowed 207K from Halifax and got a DIP refer from Nationwide which is finally going through to an offer, providing the valuation is ok, but that is conditional on us paying back the loans (not cc, although we will be). The online calculators said they would lend us 340K but with the debt that reduced down considerably even though we are paying it all off. It has taken 6 weeks to get through to valuation stage...

I would go via a broker....

kingstreet

baxt3r wrote: »

In reality it's not 50% though but even with this in mind nearly all affordability calcs would offer enough to cover what we need so if these are accurate then hopefully we'll be able to get one. I pay more in rent anyway so know I can comfortably afford the repayments and continue to reduce my debts.

Did you factor in 3% or 4% of the equity loan, depending on lender calculator used?

Any ground rent and/or service charges on the property? If so, did you take them into account?

Conrad

A lender may well decline / restrict based upon an applicants general trends with regards to unsecured debt. For example an applicant that has had steadily rising debt in the months prior to mortgage application.


The FCA makes responsible and sustainable lending centre stage in everything a lender does.

chappers

Can be dependent on what that spending is though.
We had an application referred as we had run up £30k credit card debt in a few months, doing a loft conversion and renovations in preparation to sell, they were ok though, once they saw that all this spending was to builders merchants etc, and they were happy that it was exceptional spending and not part of our general spending patterns.