Increase Mortgage Length to Increase chances?

Cobalt_Eagle

Hi All,

Myself and my partner (both 25 years old) are first time buyers with the following circumstances:
LTV: 75.3%
Borrowing 3.05*Gross Salary
Combined CC Debts of £8.5k (on 0% deals, slowly being paid back)
Credit utilisation of 27% and 11% respectively
Clean credit histories, no missed payments, but a couple of recent (3 months ago) credit searches each from switching current accounts and an AIP we did to get a feel for what we might be able to borrow.

We've got with a mortgage broker on Wednesday to go go through our options and start a full application but we are a bit concerned that we might be turned down because of the CC debts and recent credit checks. If we applied for a mortgage for a 30 year term rather than 25, would this increase our chances of being approved? From our own calculations we know we can afford the monthly repayments on a 25 year mortgage.

I realise a longer term mortgage means paying more interest overall, but ideally we would choose a mortgage we can overpay to counter this effect.

Basically I'd just like your thoughts on whether going for 30 year deal would make acceptance more likely.

Many Thanks.

ACG

Can you not up the deposit to get it to 25%? You will find you get a better rate and credit scoring is also likely to be more lenient.

That being said, unless affordability is tight then a 30 year term is unlikely to make much (if any) different to being accepted.

Speak to the broker, tell them what you want. They will tell you if they think it can be done, if not, they will tell about alternatives.

David_White

Increasing the term will ease affordability generally speaking, however based on what you've said it probably isn't necessary.

Tell the broker about your concerns and I'm sure they'd happily go through all options.

Good luck

David_White

Totally agree with the above as well!

If you can get the LTV bang on 75% you're likely to get a better deal.