Many questions affordability/maintenance payments/new build

florita1

This is a bit of a long one so bear with me...

Say a borrower passes a mortgage credit check, do mortgage lenders base their decision to lend based purely on affordability? For example, Santander affordability calculator say they are prepared to lend me x amount. Does the credit check affect this amount or is it accurate, assuming I have declared a true account of finances and pass the check?

Aside from Santander are there any other mortgage companies who accept maintenance payments which are not via CSA?

I am considering buying a new build with 10% help to buy equity loan, I would like to either offer £15k under asking or ask them to pay £15 stamp duty. My thinking was it would be better to ask for the firmer since it would reduce the equity loan - any thoughts (if they say no I'll cross that bridge separately)

How long does it take for a loan to show as settled on credit file (I'm overpaying massively to have it paid, to increase affordability)

Finally, if we are a few grand short, and the house isn't scheduled to be completed for 5/6months would I have time to save the extra or would I be expected to have it in advance if the offer being accepted? I've factored in fees and stamp duty etc but planning for the possibility they might not lend the full amount

ACG

You have to pass affordability and credit check in order to get a mortgage.
There are lenders who accept maintenance payments, but you need to compare your situation against their criteria. Not all maintenance payments are identical.

With regards to the other questions, every lender is different and so some may not need to see the full deposit, others may. Some will not need to see the loans paid off others will.

Thrugelmir

Incentives are declared to the lender and therefore the surveyor. £15k of stamp duty means the selling price of the property is effectively overvalued.

florita1

ACG wrote: »

You have to pass affordability and credit check in order to get a mortgage.
There are lenders who accept maintenance payments, but you need to compare your situation against their criteria. Not all maintenance payments are identical.

With regards to the other questions, every lender is different and so some may not need to see the full deposit, others may. Some will not need to see the loans paid off others will.

What I mean is, does the credit check affect the amount I can borrow?

The loan will be paid off but I'm wondering how long it takes to show as settled on my credit file?

florita1

Thrugelmir wrote: »

Incentives are declared to the lender and therefore the surveyor. £15k of stamp duty means the selling price of the property is effectively overvalued.

Indeed it is, IMO. They have offered to pay moving and EA fees but if it's still on the market in the new year I'll ask the question.

I'm thinking getting 15k off the asking price would be better in this case?

ACG

Some lenders grade your application and that can affect how much you lend.
It can take around a month to update with most lenders but I read the other day with Santander it can take up to 3 months. But some lenders do not need it to appear as cleared, you can tick a box to say it will be cleared.

As I said, every lender is different and so it is very difficult to generalise. You either need to check the criteria before applying or speak to a broker and let them deal with it.

florita1

ACG wrote: »

Some lenders grade your application and that can affect how much you lend.
It can take around a month to update with most lenders but I read the other day with Santander it can take up to 3 months. But some lenders do not need it to appear as cleared, you can tick a box to say it will be cleared.

As I said, every lender is different and so it is very difficult to generalise. You either need to check the criteria before applying or speak to a broker and let them deal with it.

Will contact my broker in the new year, just trying to do my homework first and get as prepared as possible, thanks