Mortgage success with debt

Ftb_yorkshire

Just to give others hope, we’ve had our offer approved today for mortgage 90%LTV with 10% deposit on purchase price £175k

Applicant 1- salary £46k, outstanding loans £8k, credit card £6k, child care £180pm

Applicant 2- salary £37k, car loan £356 pm for 2 years

Mortgage approved no questions asked with principality 2.1% rate for 2 years. Application submitted 15/9, valuation 20/9, offer received 27/8

👍👍👍

kingstreet

I'm not surprised.

Your salaries suggest a maximum loan of over £350k. A mortgage of £155k should be a stroll in the park...

Ftb_yorkshire

Agreed but applying for the first time with debt is always a worry irrespective!

kingstreet

Nah.

The only thing which causes problems is when the conduct of your debt is dubious, or doesn't match the selected lender's chosen business profile.

I make a living from ensuring each client's circumstances match the criteria/status/affordability requirements of the lender recommended.

kingstreet

For example, if the sum total of your outstanding debt (inc PCP balloon payments) exceeds 50% of your joint gross annual incomes, there are lenders to stay away from, even if you have a spotless payment record.

Ftb_yorkshire

I don’t doubt you for one minute but as someone who has been so so worried about the debt the offer today has been incredible! We had a great broker who throughtout echoed what you said but until the offer came through the pessimist in me took over!

Thrugelmir

What term did you take the mortgage over?

Ftb_yorkshire

30 years, ages of applicants 27 and 33.

stu2500

We were similar:

App 1 salary 21k (I do earn £12k commission but they didn't need to use that)
loan 1 197 per month
loan 2 141 per month
cc balance 9k
student loan (plan 1)
OD 1000 (regularly used)

App 2 30k salary
car finance 200
cc balance 2k
existing let to buy £250
OD 500 (regularly used)

And we got approved for our £112,500 mortgage over 25 years with Natwest without any issues at all, using our broker. I did expect some issues with the level of my credit commitments.

jarshay

My wife and I were in a similair(ish) position:-

Self Employed Ltd Directors with 1 year accounts (but 2 years SA302s & Tax Year Overviews).
Applicant 1
15/16 : Salary : £7500 | Dividend : £12500
16/17 Salary : £8060 | Dividend : £24440
Credit Commitments
Loans : Car PCP : £317pm till Aug 18 ( £7000 balloon payment to be made)
CC : £0
NO MISSED PAYMENTS ever

Applicant 2
15/16 : Salary : £11000 | Dividend : £12500
16/17 Salary : £8060 | Dividend : £24440
Credit Commitments
Loans : None
CC : CC1 : £975/£1000 | CC2 : £1600/£2000 | CC3 : £5200/£7550
NO MISSED PAYMENTS in past 5 years

We got a mortgage for £212,000 from Natwest with practically no questions asked through a broker - so it is possible and there is hope for all.

Thankfully we are finally going to be out of the private rental sector - we have been paying £2500pm rent for the past 2 years and now going to a mortgage of £685pm!!

csgohan4

Key thing is using a good broker here. If you winged it and went direct, you may have had problems