First time buyer - Worried mortgage wont be accepted!

BradZ

Me and my partner have reserved a new build and are waiting for our help to buy application to be approved. We are going through a mortgage broker and she applied for an AIP with Nationwide the other day which was accepted, she rang and them also and they said they would prefer if we took a higher percentage of help to buy - we only wanted to take the 10% equity loan but Nationwide would feel more comfortable us taking 15%, in the end due to issues with Help to Buy we have now had to take 20%.

We are getting all our documents over to our broker - I’m really worried it won’t be accepted - I have a £250 overdraft which I do go into every month, my statements at the top the money out amount is more than the money in but there is always a positive number on the starting balance will that be ok?

They want three months of bank statements and at the bottom of one of mine it says '3 OD fee @75p per day' I can’t see it on my statement but I’m thinking that related to me going over my agreed overdraft for a few days - will that mean it will be rejected? Wasn’t expecting to find a house and being doing all this until next year so worried they will look at that and it will get rejected. We have been away twice in the last few months also so worried they will say about affordability to. This whole thing is so stressful! We have 28 days to get it all sorted as of Saturday!!

Anyone been through the same who can advise or try to put my mind at rest.. thanks!

spadoosh

You cant do diddly squat about it now youve applied. If that puts your mind at rest?

I got accepted for a standard product and i had two high interest credit cards that i was using, an overdraft that was used monthly and a few lat payments form a mobile contract. The biggest issue i had was working two jobs, i though we would be close with affordability but it worked out for them to just put one income on (so theoretically drastically reducing our affordability) but they still approved.

They want to lend money, its one of the ways they make money. If they say no it can be a blessing in disguise in that they could potentially be saving you from a financial nightmare. Ok it might take longer for home ownership but at least you will have a better chance of staying in it.

What are your sums like? I always find its better to be on the conservative side with regards to finances. If you can be really conservative and its still affordable you shouldnt have many issues. If youre being lax with your budget and youre barely affording it then youll probably be rejected. Be really honest with the budgets as if not it can cause huge problems.

BradZ

Thank you!

Well we currently pay £720 in rent and the amount of money we would need to borrow would mean repayments would be £560 per month so just looking at that alone i know we can afford it and i hope they see that to. At the moment though we probably spend more then we should - not more then we have but it terms of at the end of the month i dont have much money (if any) left over before pay day. We do go out for dinner, takeaways etc but if we have a mortagage all that would be curbed.

My worry is they will just look at our statements and think - they spend way to much on stuff thats not needed.

I guess we will see - I wish i could be relaxed about it like my partner but im a worrier and stress head!

Fcuktheworld

New build mortgages are different to normal ones. Not sure why?

spadoosh

BradZ wrote: »

Thank you!

Well we currently pay £720 in rent and the amount of money we would need to borrow would mean repayments would be £560 per month so just looking at that alone i know we can afford it and i hope they see that to. At the moment though we probably spend more then we should - not more then we have but it terms of at the end of the month i dont have much money (if any) left over before pay day. We do go out for dinner, takeaways etc but if we have a mortagage all that would be curbed.

My worry is they will just look at our statements and think - they spend way to much on stuff thats not needed.

I guess we will see - I wish i could be relaxed about it like my partner but im a worrier and stress head!

Whats their to worry about? If they say no, nothing changes for you. Youre no worse off than you where before. Id worry more if i was accepted for a mortgage. Usually committing to at least 25 years paying a good portion of your income.


Cost wise its not always as clear cut as mortgage is cheaper than rent. You probably dont pay life insurance, you probably dont pay building insurance, theres a chance youve never bought furniture, white goods, leaking taps/toilet/washing machine, lawnmower, toolbox, blinds all need to be paid for, serivce/maintained. Then you get the bigger items like aleaking roof, rising damp broken boilers where you will need access to thousands of pounds.


Honestly do a proper budget. You wont get exact figures but you will get rough figures, err on the side of caution and plan. You could reassure yourself quite easily if you had a comprehensive budget planned out. You'd get a good idea of what is and isnt affordable from that.

andyf1980

I wouldn’t worry about it (easier said than done I know). We bought a new build this year and were offered a mortgage with Nationwide with previous adverse. Went with Halifax in the end.

Have faith in your broker; they shouldn’t apply if they don’t think you’ll be approved.

Hope that helps!