Cynical about chances of getting a mortgage

echo_and_narcissus

Debtslayer wrote: »

I think you need to speak to a good Independant mortgage broker. They will look at all your income and expenditure and advise if they believe you will be able get a mortgage. They do this day in and day out and know what lenders would be willing to lend.
They will be able to advise what benefits etc are taken into account.
If they say it would bd possible for you to get a mortgage they will advise how much you could borrow and give you some idea of the payments and then you could see if a mortgage would be affordable
Speak to a mortgage broker, will be the best call you can make and will help answer any questions you have

My initial thoughts on this are: wait to do this until I have three clear months AFTER receiving my inheritance, thus paying off credit cards and overdraft? So I have three good months' of bank statements to show?

echo_and_narcissus

amnblog wrote: »

Things sound tight on affordability. Even with the tax credits and maintenance, 4 children and childcare for them will pull the affordability calculations right down. A smallish recent default is manageable, but reduces your options significantly.

You won't know exactly where you stand unless you engage an independent mortgage broker.

If I'm not paying for childcare at the time I see a mortgage broker, will this make much difference? If I was, ie I had started uni, my understanding is I get a means-tested grant towards costs. I should highlight I don't pay any childcare costs currently.

amnblog

The broker and the Lender will ask you to outline any expected changes in circumstances anyway.

AnotherJoe

OP, Is it an actual student loan, or a loan you took out whilst a student? Or is there a third option?

alchemist.1

I wouldn't be touching the student loan. If you haven't earned enough to pay any of it back, I would leave it alone until you are. Especially as it will be on preferential rates,

echo_and_narcissus

AnotherJoe wrote: »

OP, Is it an actual student loan, or a loan you took out whilst a student? Or is there a third option?

It's an actual student loan.

alchemist.1 wrote: »

I wouldn't be touching the student loan. If you haven't earned enough to pay any of it back, I would leave it alone until you are. Especially as it will be on preferential rates,

Yes the rate is very low, I was reviewing my last statement yesterday. I'll definitely have a think about what to do with this.

MortgageMamma

Echo_and_Narcisuss

firstly, you could leave the student loan for now - not an issue until you are earnings more. Secondly, could you do the masters part time and perhaps a part time job to help with money?

So what you are saying is basically if you bought a house for the price you state with a high street lender you would have £400 more per month than you do now? what term did you calculate the mortgage over as a longer term would mean lower monthly payments which may help you out in the next few years. You could always overpay to reduce the balance if you had spare cash.

How does financing for a masters work? will you be entitled to a student loan again? will you be going to a local uni or have a lot of travelling to do? Would you still be entitled to help with living costs via the loan scheme? (sorry I don't know much about a masters, but my eldest started a degree last September so I know about the finance for firsts)

echo_and_narcissus

MortgageMamma wrote: »

Echo_and_Narcisuss

firstly, you could leave the student loan for now - not an issue until you are earnings more. Secondly, could you do the masters part time and perhaps a part time job to help with money?

So what you are saying is basically if you bought a house for the price you state with a high street lender you would have £400 more per month than you do now? what term did you calculate the mortgage over as a longer term would mean lower monthly payments which may help you out in the next few years. You could always overpay to reduce the balance if you had spare cash.

How does financing for a masters work? will you be entitled to a student loan again? will you be going to a local uni or have a lot of travelling to do? Would you still be entitled to help with living costs via the loan scheme? (sorry I don't know much about a masters, but my eldest started a degree last September so I know about the finance for firsts)

Part time study and work is an option I would need to look into as part time study changes the financial help I could get.

Yes, we would be £400 better off per month, based on the calculators I have used plus the savings from having repaid the credit cards. I used a term of 25 years.

Financing for the course is actually a bursary rather than needing a student loan. The university is local so no big travel costs, and I can claim travel expenses for my placement. I can also claim childcare costs either via tax credits or through the university.

Thrugelmir

echo_and_narcissus wrote: »

My initial thoughts on this are: wait to do this until I have three clear months AFTER receiving my inheritance, thus paying off credit cards and overdraft? So I have three good months' of bank statements to show?

Lenders use historic data from the Credit Reference Agencies. The sudden change of financial circumstances will therefore be noted. Three months isn't long in the scheme of a 25 year mortgage loan.

AnotherJoe

echo_and_narcissus wrote: »

It's an actual student loan.
.

Then that's the last thing you should be paying back.