Getting into a financial position for mortgage ap

jmel

Hi everyone,

After the advice given on my last post I thought I'd try again with a different question! I was in a position a few weeks back where a mortgage application was denied (bank haven't given very in depth details but broker thinks it could have been mixture of overdraft on a 2nd bank account and CC balance - I've got a case with NatWest/FSO to see if they can provide more info to me).

Based on the advice given on the post, it looks like my OD was the most important to pay off first, this is something I then budgeted to do by the first week of April but after speaking with my parents last night they said they could help me pay that off yesterday and then I would send them the money in installments up to start of April, better the overdraft being paid off quickly they said. This is good news in terms of having the O/D paid off now but I'm worried that an underwriter would be concerned that I had 3 big payments going to my parents from my account and this would be shown on my statement in the months February (500), March (700) and April (300). Is this something that I should be worried about?

I also have 1100 left to pay on my CC and have budgeted to have this reduced to 500 by the start of April and then cleared in full before the end of April. Am I right in thinking that a lender would be okay with this being there initially if I look to apply again mid-april under the condition it would be cleared a couple of weeks after applying or if I apply at the beginning of May and the balance was cleared but not updated with CRA's (as I'm aware this can take time to update).

Not sure if this info helps but In addition to the CC and O/D I also have car PCP with a balance of 10K which costs me 180 per month, I'm a FTB with salary of 24K/year (raising to 30K from beginning of May) and the properties I'm looking to buy are no more than 105K.

I'd be aiming (hopefully) for completion at the end of May but no later than mid-June as my current rental agreement ends at the end of June and cannot be extended.

May have rambled a bit but everyone here seems to know what they're doing and I'd really like to be able to get on the property ladder and not be throwing more money in rent at a landlord to effectively pay their mortgage!

Thanks, J :money:

Amanda_Cm

Is always good to pay your debs. I always hated credit cards, Od etc.
Hate paying their rates!
Anyway. Did you check your credit score?
If is above good and you pay your debs you should be able to get mortgage. The big one is the pcp. How much of deposit you have?

hazyjo

I'd leave it 3 months after it's been cleared (end of April, so prob early Aug).


Average freehold purchase takes 12 weeks so it's very unlikely you'll complete by end-may/mid-June. You (presumably) need to find somewhere first which can take a while.


Actually I would take a cheaper 6 month rental and start looking 3 months into it. When you exchange, give notice. Or even a year contract and start looking after 9 months and go onto a rolling contract after so you can give notice at any time.


One in three(ish) transactions falls through. Twice it has taken me nigh on a year to find a property, form a chain and complete due to the chains collapsing. One also took 5 months due to legal issues with my purchase.