Firt time buyer/mortgage

peter333_2

hi im about to buy my first home, this has all come pretty quick us having to buy a home as we were staying in my partners parents home which is now sold. they never lived there and we paid rent as any normal couple.
basically they are gifting us money for a deposit and we are looking to buy anew build.
my oartner has a random credit history but mine is perfect, therefore I am going to apply myself alone.. the only thing I have at the moment is a loan which we plan to fully pay off when we receive the gifted inheretence, the rest being for our deposit,


I currently pay 690 in laon/rent payments, these have never been missed and are all shown on my bank statements, the mortgage should be less than this monthly, will this help?

the house value we have seen is a new build that is 212995, I have been approved for a first time buyer equity loan and also have an aip from NatWest which included a full credit search approved.

my only worry is as we were not really prepared for this I have spent some time in an authorised overdraft over last few months, only of a couple of hundred pound. and when doing full mortgage application I will have to show them 6 months statements. I have never gone overdrawn unauthorised and the overdraft is paid off fully every month. I have actually closed this overdraft in the last month so when we do full application I will have no overdraft plus no debt.
I earn around £2100 take home per month, my gf will be living with me and contributing to paying bills, my main question is, should I be worried about spending some time in my overdraft??


any advice would be great in this stressful time??


thankyou

Glbooth3

You will deffo need to have gf on mortgage application, gifted deposits are normally only accepted from direct family members, so because it's her parents she would have to be on application (some lenders may have leeway but by to my knowledge) as long as you declare everything then I wouldn't worry so much, being open and honest is the best. We hired a broker who knew which lenders to go to to fit our citcunstances

peter333_2

Hi and thanks for the reply,gifted deposits from none family members aren't a problem as long as a legal letter signed and stating that no repayments will be required is included through solicitors,appreciate your time and effort replying

ani*fan

I recently got a mortgage and my overdraft didn't count as a debt or impact on affordability. They saw it got paid off every month and were unconcerned. So don't worry about that.

I do however have a couple of credit cards, total debt around £6k, and was advised that making regular repayments for years over the minimum payment actually helped my chances of getting a mortgage. It's proof that you can manage affordable debt.

Your rent and debt payment is not huge, how is it divided up? You can always pay off some of your debt to increase mortgage affordability, but leave some to show you can handle credit. I'm guessing it's quite small though. Our mortgage payments are slightly larger, £40 or so, than our previous rent was and we got a mortgage easily.

If you don't mind sharing the amount of inheritance, the amount of your loan and how much mortgage you're requesting, we can help you figure out the likelihood of this being successful. Failing that, go to a free mortgage advisor and ask. I know it's nerve wracking, but it's all just a numbers game really and they want to make money out of you. So try not to worry too much.

I'd guess you're a bit anxious because the house is quite expensive for a first time buyer. But hey, might as well go for it if you can afford it.

Best of luck.

peter333_2

Hi and thanks for the reply,

Yes no problem I can share, my loan has 16k left on it I pay 390 a month an have been paying this for around 13 months, I have never missed any payments, this will be getting totally paid off before we apply for mortgage..

I am getting 30k inheritance so will be using 13.5k as a deposit, and I have already been approved for the government help to buy equity loan leaving me needing a mortgage of 157/158k..

All over drafts are paid off now and closed, I have no other credit also...thanks for your reply I appreciate it,,