Failed mortgage application for £300k with a 5% deposit - help!

getmore4less

Is that with or without the overtime?

if with then the total on the budget is still £2500pm spending every month.

how big are those car loans?

Writerillbe

We currently put that whole amount (and more) into savings, but when we move we want to put £400 minimum into savings and use the remainder to decorate, possibly actually go on holiday because we haven't been for 3 years due to saving. To be honest we'll probably put more than £400 into savings once we move, but just being conservative about it.

Also the £1,026 figure is what we have leftover taking the new mortgage into account - we currently have more as paying only £1200 or so for mortgage and rent.

Sorry for the confusion! ☺️

getmore4less

If you have been saving over £1k for 3 years why only 5% deposit?

edit: (I keep thinking of new things)
Also if you have only been renting for 6 months there should be 2.5 years of rent saved up as well.

How long have you had this other house/mortgage
Is it sold?
has it been empty for 6 months
did you get consent to let at any time

SuboJvR

Writerillbe wrote: »

Sorry, I've got it wrong! My partner does the budget planning and I've misinterpreted what he said - will try and edit the post.

We have £626 disposable, £1,026 without savings. This doesn't take include what we spend monthly on holidays (£50), entertainment i.e meals out etc (£400), as all of that has been factored into the budget - so £1026 is what we have left over after that. We both have car loans and mobile phone contracts, but again all of these items have been factored into the budget. We've even accounted £60pm for dog food, which did make our broker giggle 😂

I think to better understand where your money is going, you should take a look at it for yourself. It really does sound like it's haemorrhaging out somewhere.

Feddylwyr

Partner here... All the money goes into savings, we have saved the 5% deposit for a 315k house. The amount of money able to save has increased over the last 3 years due to job changes, getting the other property to sellable standard etc. It is currently at about £800-£1k a month.

We are paying the mortgage on one house which has been sold (Currently at completion stage) and rent a house in the city (Due to work commute)

We literally have £400 a month between us for our entertainment, food etc and everything left over goes into the savings hence we've managed to save the 15k (now 20k due to overtime this month) This will cover the deposit and stamp duty.

The above budget was after we did the affordability because we wanted to be in a position to save at least £400 a month. There should be closer to just over 1k disposable working out the budget if we get the mortgage.

We just don't understand the refusal. Our broker actually appealed it to no avail being told just high risk.

Fingers crossed with this company now.

getmore4less

what does the this post purchase SOA look like?

For £5k pm income there seems to be a lot going out if the plan says only saving £400pm.

SuboJvR

Stamp duty is £5750. Then add solicitors fees, arrangement fees, removals if applicable etc. Have you budgeted for this?

getmore4less

I suspect the overall picture is not to good, too much money going out bare minimum savings, commitment to credit(car loans) over saving to buy.


With the house sold, which seems to have cost you a lot you money and made nothing which is quite hard these days, you should be saving loads soon especially if you give your budget a good overhaul.

Should be at 10% deposit within 6 months easy.

Feddylwyr

Well sorry to have been away with work commitments and sorting this out it's been a bit of a roller coaster.

Think there was some confusion in what we posted. On our affordability we wanted a minimum of £400 a month. We were still left with around £600 disposable after that, the majority of which would have likely been saved, used towards the house etc.

In any case we got a mortgage. Flew through with Accord with no problems or questions asking for any more information. We have exchanged and are completing on Friday! The process would have been faster if our solicitor (who I wanted to use as he's extremely efficient and was in our sale) was on their panel, but he had dropped off due to inactivity with the lender over the last 12 months.

Literally just transferred over the stamp duty and final payments to the solicitor and our bank account is looking somewhat lighter.

Final cost of moving with solicitors stamp duty and deposit was about 24k which we managed through our savings and last.months payment.

Going forward we have virtually no debt apart from a pair of car loans totalling £300 one of which ends in January.

It's been a hard couple of years but finally made it and inches away from getting the keys to our dream home.

Feddylwyr

Well sorry to have been away with work commitments and sorting this out it's been a bit of a roller coaster.

Think there was some confusion in what we posted. On our affordability we wanted a minimum of £400 a month. We were still left with around £600 disposable after that, the majority of which would have likely been saved, used towards the house etc.

In any case we got a mortgage. Flew through with Accord with no problems or questions asking for any more information. We have exchanged and are completing on Friday! The process would have been faster if our solicitor (who I wanted to use as he's extremely efficient and was in our sale) was on their panel, but he had dropped off due to inactivity with the lender over the last 12 months.

Literally just transferred over the stamp duty and final payments to the solicitor and our bank account is looking somewhat lighter.

Final cost of moving with solicitors stamp duty and deposit was about 24k which we managed through our savings and last.months payment.

Going forward we have virtually no debt apart from a pair of car loans totalling £300 one of which ends in January.

It's been a hard couple of years but finally made it and inches away from getting the keys to our dream home.