FTB mortgage affordability advice

SillyBillyHead

Hi - looking for some advice on a FTB mortgage for myself and OH who's self employed and we have a combined income of roughly 50k.

We have had an offer accepted on a house of 279950, with a 30k deposit. Our AIP is up to £264k.

We are waiting to actually apply for the mortgage until march as my broker tells me the bank will look at the last 3 paychecks and over Xmas my OH had 2 weeks off as the site closed - not ideal as we have been waiting for this house since October and would have been fine if the chain had completed then! So I get an annual bonus and a payrise letter end of Feb and OHs pay will be better at the end of this month. Why are you told if you're self employed you need a years or two years accounts when they actually only look at the last 3 months? Not ideal! Bank statements are better as OH had a tax return, would they potentially look at that as covering the lack of 2 weeks pay in December?

Also slightly concerned about my credit checks, I missed one payment on my credit card in 2013 by a week due to their incompetence setting up my DD but I can't remember if I got it removed from my file. It doesn't show when I check on ClearScore? Also ive been in my overdraft a lot over Xmas and at one point went £5 over my limit for a day. How much will these things affect our application? I have 2K on a credit card paying more than the minimum at 0% and my OH has no debt but a fairly good credit file as he's had a car in finance in the past and numerous mobile phone contracts.

Im just a bit nervous that we will not get the mortgage we need

Dsharp84

Not got any advice but in the same boat - have you had your decision through yet? X

ACG

2-3 years accounts are requested to evidence your income.
3 months statements are requested to evidence your wages going in and your bills being paid.

As for the late payments, I would be surprised if it is a major issue. Everyone has the odd late payments.

Blinky24601

Hi the above is me - trouble with logging in! We still haven't applied - I get my payrise and bonus end of this month and my broker is in hospital so earliest we can see her is 11th March. Would ideally like to apply before then but she has been so helpful. I just hope the vendors are happy to wait a little bit. I guess it's in everyone in the chains best interest we get the best mortgage possible so a couple of weeks I'm thinking will be ok. Will update further.

On the plus side OH due to other factors earned more in the last 3 months than he did when we got the DIP so that has to count for something. And I've paid off one credit card as well.

Fingers crossed!

What's your situation?

ACG

Im selling my house at the minute. After 10 days I was chasing to find out why the valuation had not been booked in - probably because I know it only takes a week or so.

You want to wait 17 days before even making an application? I can not see the vendors (or the agents) agreeing to that personally. If you have not told them, they will be chasing you before the end of next week I reckon.

Blinky24601

I did worry about this ACG - if they chase us I guess we will have to cross that bridge when we come to it. Worst comes to worse we will have to approach another broker ASAP! This is probably not the most sensible thing but we've instructed solicitors to do searches etc which will hopefully give us some time. I am fully aware we will lose that money if our mortgage is declined. I guess us being patient with the vendors since October while they found somewhere means nothing if they can't wait a couple of weeks

ACG

I suppose if you have waited for 3 months you would think they will give you some grace but what the vendors are saying and what the agents are saying could be complete opposites.