Mortgage Acceptance Stress!

Shauna4991

Hi guys,

This is completely speculative... but I've always had so much help when posting on here that I thought I would. I'm in a position where we've found a house I love, put in an offer and had it accepted, and they're awaiting our mortgage meeting to start to move forwards. (Note, I say 'our' but I mean 'me'. I'm buying a house on my own - but my partner has a lot of involvement as he will be living there with me too.)

I'm starting to feel nervous about being accepted on the HTB mortgage via HSBC, but I'm not sure why other than that I'm a worryer.

Our meeting isn't until 27th April and then it'll need to be 'underwritten' so we won't find out until the 11th May apparently whether the mortgage will go through. Lots of people are saying 'If you got a DIP there's nothing to worry about!' but I read somewhere that in 2013, only 50% off these types of Mortgages were accepted... so that got me thinking.

• I have a DIP of a borrowed amount of up to 110,000. The house is 105,000 and my deposit is a 5% one. Since the DIP, my earnings have gone up yearly by about £8000 due to two pay rises in March.
• I take home £2050 a month after tax - I'm on about 29K a year.
• Been in my current job 1 yr 6 months now, and a new part time one for 8 months. Have contracts and letters to prove this.
• I have the full deposit amount in my account now, plus about a spare £800 in the savings alongside this. This was all saved by me, bar £1000 of it which was a gift from a close family member.
• I have a perfect credit rating and never defaulted on a payment at all. I've been living away from home so paying a lot of bills for about 3 years so I should have enough of a credit history.
• My only outgoing spend is £100 for car finance per month.

My only issue (and it's keeping me up at night, honestly!) is that I have a credit card with about £400 on it from a car breakage that cost over £1000 last year which I just didn't have spare at the time (I was at Uni).

I pay off £50 of it per month, every month and they can see that I have done that and that the amount goes down each month - I've just got a routine of doing it and my bank direct debits to the credit card to pay it, so I think of it as any normal bill just because I've been doing it for so long. But will the £400 on a credit card be an issue? When I had the DIP meeting they said it wasn't a problem, but I'm reading and 50% of people say ITS AWFUL GET RID OF IT YOU'LL NEVER GET A MORTGAGE and 50% say 'It shows you're paying off your debts!'...

I thought I could maybe use the spare in my bank to pay the £400 off the credit card - but then I read that those who just have the minimum deposit amount in their bank are looked into far more closely, so I'm trying to weigh it up.

I have thought about asking for a family or friend to foot the £400 bill and I'd pay them back £50 per month as I do now, but of course that's a bit of an awkward situation and I don't want to do it if it's not going to cause an issue with the Mortgage acceptance.

I've seen threads on here where people with 10k+ credit card debt have got mortgages, but naturally I assume they're more strict with a 95% LTV...

Does anyone have any experience in this? Understand I've read a lot of conflicting information and the above is fairly rambly! Apologies.

ACG

I have not read all of your post.
Stop reading the internet!!!
Every application is different as every applicant is different.

50% of DIPs being accepted is a load of rubbish, nobody has a clue as lenders do nto release the figures. If only 50% of my cases went on to complete I would be out of business. Last year 3 of my cases failed to complete, I promise you I wrote more than 6 mortgages.

Be honest at the meeting and if you pas the DIP you should be fine come the underwriting stage.