AIP application advice.

kmorganr

Hello, I'm hoping someone can offer some advice. Building society and financial advisor currently not giving me anything useful!


I'm looking to apply for an agreement in principle so I can start looking at property knowing how much I can afford to offer. I have a 'save to buy' account with Nationwide so I'd like to take full advantage of the cashback offer with them, plus according to their online calculator they'll lend me more than any other provider I can find. I don't want to start the process of applying for a mortgage unless I'm near to sure they'll lend me this much as they say on their online calculator, I don't want unnecessary checks on my credit file and any less than this and I won't be able to buy anything in my area.

• I have £16,000 saved for a deposit, I'm able to increase this by at least £1000 a month, possibly more for a couple of months if required for a purchase.
• When I put my salary and all my committed outgoings on Nationwide's online calculator it says they "maximum amount that Nationwide may be prepared to lend you" is £183,600.
• Experian credit score = 967 (Excellent)
• Equifax credit score = 496 (Excellent)
• No 'black marks' on my credit history except for one late mortgage payment in September 2011.

When I call Nationwide to ask if the £183,600 is right and what can be affect this figure they tell me 'it's pretty accurate' and won't give me more information than that which is quite frustrating.


My questions are:


1. I save every month, sometimes more than others. I spend more that I should enjoying life, meals out, weekends away, clothes etc. but I always stay out of my overdraft and my debt has been reducing every month for at least a year. Will this spend be taken in to account in affordability? I'm presuming (hoping) not because it's not committed spend?





2. My partner has a poor credit history, actually debt free but his history is not good enough to apply for a mortgage yet. We've not got a joint current account or any joint debt and are not linked on any of the credit reference agencies. However, we live together and have done for 4 years, he is on our rental agreement and I think a water bill but that is all. All the bills come out of a current account in my name, he pays me his half every month from his current account in to mine. His car tax and car insurance come out of that account too (I can evidence these are not my financial commitments). He will live with me in the purchased property but with no obligation to pay anything towards it, although he'll likely pay half. Will his financial situation be reviewed in my application?

Any advice appreciated.

ACG

1) Not normally. Most lenders use ONS figures.

2) Not normally. Assuming the deposit is 100% yours you should be fine. You will need to declare he is living with you, but he is not financially dependent on you by the looks of it so you should be fine. Also (as some people do ask), you can not use what he pays you as your income. Only income from employment where tax is paid can be used.