DIP through to full application - debt query

lifeofunmumsy

Hi all,


I've been a long time lurker and massively appreciate all the help and support you all give each other so I was looking for a little information myself! sorry in advance for the long post.


A bit of background:
Own a house that's currently up for sale - will break even or possibly make around £2k equity. The new house deposit has been saved by myself and my husband and is 5%.
I did an affordability check with Nationwide before putting the house up for sale that came out with around £217k (all debt declared) and we bank with nationwide for all accounts.


We submitted an DIP last week and got referred (only due to me having a notice of correction from some fraud committed against me a few years back) and now the DIP has been approved, we've asked to borrow £150k with a £9k deposit. We're just submitting our payslips as requested but they show the exact income we've declared. Then I presume we'll get our certificate of DIP.


What I want to understand is, if I am perfectly honest, I thought we'd have to move to my parents for 6 months to pay off our debt before putting an offer in on the new house, but now I am confused as it sounds like Nationwide have approved our DIP with all of our debt declared. I'm scared to put an offer in on a new house and going ahead with the full mortgage application only to get told we have to clear the debt before completion later down the line?


Current situation:
Joint income - £61000
Total debt (pretty equally split) £23400 on credit cards
OH has a car finance payment of £319 a month
I have a finance repayment of £140 a month.


We have asked to borrow £150k when we were affordability checked at £217.


Does it sound too good to be true or can we potentially be offered the mortgage even with the debt we have?


also just to confirm, we both have credit scores of 969, Nationwide advised we have passed the credit check with well maintained accounts, have never missed a payment on anything and over pay our monthly payments - the debt was from a wedding years ago and yes, in hindsight what a silly thing to do!.


Any guidance or similar experiences i'd be more than grateful.


Many thanks

Thrugelmir

You need to sell your existing house first. Before there's any possibility of moving forward. What the policy of the NW will be at the time of full application is an unknown. So I'd suggest focusing on your debt first. Perhaps plan spending a few months with your parents. As it isn't just a question of obtaining a mortgage but you getting to grips with the debt. Not suddenly magically going to disappear.

kingstreet

lifeofunmumsy wrote: »

I am confused as it sounds like Nationwide have approved our DIP with all of our debt declared

What does this mean?

You declare the debt, then you confirm if it is to continue and should be factored in to affordability or it is to be cleared on or before completion and will be ignored for affordability.

What did you tell them?