Help with lots of conflicting mortgage advice!

maddison87

Hi - hoping someone with some experience can help me with out current mortgage situation. We sold our property at the end of March, didn't expect to sell it as quickly but we had a cash buyer and she offered asking price within 3 days so we snapped her hand off. We stood to make 27 thousand on the house sale with the view to porting our mortgage with Santander to a properly of slightly higher value (125k). Santander refused the port on the grounds of unsecured debt - fair point we had amassed quite a bit since we moved in due to renovating the property and a new car finance. This was all vastly down to our ignorance - having these fantastic Experian credit scores I now realise means very little and we felt like we could do this without the help of a broker. Santander said that we were eligible for an appeal due to us both having quite well paid jobs compared to the value of the property. I earn 31k before tax and my parter 27k. I felt under pressure from the mortgage advisor who worked for the estate agent to push ahead with the appeal (obviously they wanted the house sale). We had already both decided we would progress with the sale of our property regardless (we have nice parents and no kids so we are currently living with my partners mum and dad trying to save some cash) An independent mortgage advisor told us that we shouldn't bother with the appeal from Santander and we should use the bulk of our profits to pay off the unsecured debit (mostly cards) and
Retain a 5% deposit which we could start adding to until the perfect house came up again - which is what we've done. We've cleared nearly 16 grand worth of credit card debt (unfortunately we had to take a 3k hit from Santander for an early repayment). In an ideal
World we would have had more time to save up for our deposit fund as we are living back with parents but we have had an offer accepted on our dream property. The offer was accepted at 136k and we have around a 6% deposit - I can probably get it to 7%. What do people do think are our chances of getting a mortgage without the 10% - reading These forums it seems a bit desperate... we aren't debt free, I have one credit card of £1500 outstanding plus 2 loans - 1 was a home improvements loan with £1900 outstanding and i stupidly took out a 4K loan to buy my car instead of taking out secured finance. My partner has 2 cards with 5k in total on and a loan of 2,500k. He also has a 7k car finance. We spoke to the mortgage advisor this afternoon who seems to think
We'll be ok due to the price of the property. We both have great credit ratings (yes - I know they mean nothing but they're an indicator there's nothing sinister like defaults or late payments lurking) just after some general
Advice! Thanks in advance

ACG

It would be helpful if you used paragraphs (sorry to sound pedantic but reading through that was difficult).

In short, based solely on what you have said, you should be fine but will be down to score card.

Personally I think I would have held back enough for 10% deposit and carried a little more debt, but you are where you are.

Will Santander accept you now? If so, can you get yoru ERC back? Some offer a refund on the ERC if you find a new property within 3 months (I do not use Santander often so can not say for sure if they are one of them). Ultimately, if you are using a broker - just stick with them. Getting conflicting information from a broker and online is not going to help with the stress levels. Your broker knows you and your circumstances better than we do.

maddison87

Hi - thanks for the reply and I apologise for the lack of paragraphs - using a broken iPhone with a crazy keypad.

We weren't sure about the 5% either but we followed his advice and at least a massive chunk of our debt has been cleared.

I will ask him on Wednesday what he thinks about getting the repayment fee back if we went with Santander again - again thanks for the advice.

ACG

It might be worth calling Santander directly about it. I am not saying your broker will not be looking out for your best interests, but presumably if you do get yoru mrotgage with santander plus a further advance for any extra borrowing, the broker will get less or no commission.

getmore4less

live like hermits and stop spending money you don't have.

With £3800 coming in you should be able to clean things up quite a bit in a few months.

how long have you got left to try and recover the ERC if you can port?

You were probably about a year(6months at least) to soon trying to move.

when did you but that place by the time you add up the costs doing it up buying and selling you have not made much at all and sunk in a load of cash