Applying for a mortage

clocourtney

MarcMCFC1986 wrote: »

Don't worry too much.

I applied for my first mortgage about 18 months ago, and both myself and my partner have a loan each, a credit card each, had overdrafts when at University, she has store cards etc.

As long as all your debt is under control i.e. you're making regular payments each month and haven't missed any, and you stay within your overdraft limit, you'll be fine!

That's good to hear! We never miss payments on anything and will be paying off chunks of the overdraft each month now so fingers crossed! Thanks for your reply

MarcMCFC1986

clocourtney wrote: »

That's good to hear! We never miss payments on anything and will be paying off chunks of the overdraft each month now so fingers crossed! Thanks for your reply

Just read the other posts and seen yours and your boyfriends total debts are £8,500 in total.

To put into perspective, my personal debt was around £8k alone (Loan £6,000 & Credit Card £2,000) and my partners was about £3-4k - so a total of around £12k. Our income combined is the same as yours, but our deposit wasn't as big as yours, yet the house was about £20k more - if we were ok, I'd expect you will too!

Also, don't let the scaremongers make you feel guilty about having a car on finance, or an overdraft, or a credit card etc.! The banks are fully aware that almost nobody can buy a car outright, so the vast majority of drivers will have a car on finance, or leased, or have taken out a loan to buy it! And the banks also know that we live in a world where it takes time to pay off loans, credit cards and overdrafts and won't dismiss your application just for having one or all of them (as we had)! At the end of the day, you're a customer and your custom will earn them a ton of money through the interest they'll charge you - so it's in their best interest to approve your application!

Who have you applied for your mortgage with? Ours is Nationwide - and our broker told us Nationwide & Santander are the best for First Time Buyers. So, assuming you have gone with one of them, you should be fine. If not, you most likely still will be ok - assuming you got an Agreement in Principal to be able to even make an offer on a property? If you got an AIP from your bank then they have already done a soft credit check and seen that your finances are stable and affordable etc. so that is a big step, and should give you some peace of mind!

Congratulations on getting on the ladder - it's a great feeling! I was 31 (girlfriend was 29) before I got sorted last year, and it sounds like you've done it younger than me so well done!

clocourtney

MarcMCFC1986 wrote: »

Just read the other posts and seen yours and your boyfriends total debts are £8,500 in total.

To put into perspective, my personal debt was around £8k alone (Loan £6,000 & Credit Card £2,000) and my partners was about £3-4k - so a total of around £12k. Our income combined is the same as yours, but our deposit wasn't as big as yours, yet the house was about £20k more - if we were ok, I'd expect you will too!

Also, don't let the scaremongers make you feel guilty about having a car on finance, or an overdraft, or a credit card etc.! The banks are fully aware that almost nobody can buy a car outright, so the vast majority of drivers will have a car on finance, or leased, or have taken out a loan to buy it! And the banks also know that we live in a world where it takes time to pay off loans, credit cards and overdrafts and won't dismiss your application just for having one or all of them (as we had)! At the end of the day, you're a customer and your custom will earn them a ton of money through the interest they'll charge you - so it's in their best interest to approve your application!

Who have you applied for your mortgage with? Ours is Nationwide - and our broker told us Nationwide & Santander are the best for First Time Buyers. So, assuming you have gone with one of them, you should be fine. If not, you most likely still will be ok - assuming you got an Agreement in Principal to be able to even make an offer on a property? If you got an AIP from your bank then they have already done a soft credit check and seen that your finances are stable and affordable etc. so that is a big step, and should give you some peace of mind!

Congratulations on getting on the ladder - it's a great feeling! I was 31 (girlfriend was 29) before I got sorted last year, and it sounds like you've done it younger than me so well done!

That's made me feel a lot better! We are planning to go with Nationwide as well! Exactly, a lot of people this day and age have car finance, as long as you pay on time I cant see the harm. We are putting the reservation fee in for the house on Saturday and then having several other appointments after that before the application is put in so I'm sure they will talk through AIP's etc. We are only 23! Glad you got sorted, it must be such a relief to finally be in your own home thanks again, really helpful

Candyapple

MarcMCFC1986 wrote: »

Just read the other posts and seen yours and your boyfriends total debts are £8,500 in total.

To put into perspective, my personal debt was around £8k alone (Loan £6,000 & Credit Card £2,000) and my partners was about £3-4k - so a total of around £12k. Our income combined is the same as yours, but our deposit wasn't as big as yours, yet the house was about £20k more - if we were ok, I'd expect you will too!

Also, don't let the scaremongers make you feel guilty about having a car on finance, or an overdraft, or a credit card etc.! The banks are fully aware that almost nobody can buy a car outright, so the vast majority of drivers will have a car on finance, or leased, or have taken out a loan to buy it! And the banks also know that we live in a world where it takes time to pay off loans, credit cards and overdrafts and won't dismiss your application just for having one or all of them (as we had)! At the end of the day, you're a customer and your custom will earn them a ton of money through the interest they'll charge you - so it's in their best interest to approve your application!

Who have you applied for your mortgage with? Ours is Nationwide - and our broker told us Nationwide & Santander are the best for First Time Buyers. So, assuming you have gone with one of them, you should be fine. If not, you most likely still will be ok - assuming you got an Agreement in Principal to be able to even make an offer on a property? If you got an AIP from your bank then they have already done a soft credit check and seen that your finances are stable and affordable etc. so that is a big step, and should give you some peace of mind!

Congratulations on getting on the ladder - it's a great feeling! I was 31 (girlfriend was 29) before I got sorted last year, and it sounds like you've done it younger than me so well done!

It would help if you actually read the figures first before commenting. Her debt isn't £8k total, that figure is based on multiples of what a lender's guideline will see as total debt repayments. Her partner's car payments are £370 per month so their total debt will be substantially higher.

It's all well and good saying "I had x-amount of debt and still managed to get a mortgage", but every situation is different. It's not about scaremongering, it's called being realistic and trying to make the OP see how potential lenders will view their situation.

Also yes whilst a lot of banks will earn money from you taking out a mortgage from them, lending criteria is so much stricter these days and they will weigh that up vs you failing to repay.

MarcMCFC1986

Candyapple wrote: »

It would help if you actually read the figures first before commenting. Her debt isn't £8k total, that figure is based on multiples of what a lender's guideline will see as total debt repayments. Her partner's car payments are £370 per month so their total debt will be substantially higher.

It's all well and good saying "I had x-amount of debt and still managed to get a mortgage", but every situation is different. It's not about scaremongering, it's called being realistic and trying to make the OP see how potential lenders will view their situation.

Also yes whilst a lot of banks will earn money from you taking out a mortgage from them, lending criteria is so much stricter these days and they will weigh that up vs you failing to repay.

They'll be fine!

kingstreet

You need to factor 3% of the HTB equity loan into mortgage affordability, along with any ground rent and/or service charges.

You also need to pass both lender and HTB Affordability calculators;-

http://www.nationwide-intermediary.co.uk/calculators/aff_calc

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/631255/Copy_of_HTB_Equity_Loan_Calculator_-_April_2017.xls

clocourtney

Just a quick update on this post, our mortgage has been accepted and we move in our new house in 3 months! Thanks to everyone for the advice

MarcMCFC1986

clocourtney wrote: »

Just a quick update on this post, our mortgage has been accepted and we move in our new house in 3 months! Thanks to everyone for the advice

I told you so...