Rejected for 5% mortgage, should I try for 10?

Slick88

Hi,

So after some disasters trying to purchase a house myself and my partner decided to up our budget to £253k. We had previously had a mortgage in place for £190k with a 10% deposit but because we upped our budget we had to reduce our deposit to 5% and, even though we passed affordability on the calculators we have been rejected from 2 mortgage companies via broker. One based on previous pay day loans, another wanted a deposit of 35% because of outstanding debt.

the debt stands at 19000 but we indicated we would reduce this to 15000 using the left over deposit money.

Our broker is currently trying to get us a 5% mortgage but we could just scrape enough together by selling off some bits and pieces (namely my guitars and possibly my car) to get to a 10% deposit. However the debt would stay the same at 19000. This still passes the intermediary affordability calculators on several sites.

Do we have a better chance with the bigger deposit?

Our income is a combined total of £62,300

I know this is a question for the broker and I am talking to him later this afternoon but I'd just like some sage advice from those in the know if possible.

ACG

If it is passing affordability but failing a DIP it seems that it is your score is not passing at 95% LTV. So it seems like that would be the better option if it is possible.

But speak to your broker, they know far more than we do and may have other ideas.

Noobie2011

Not sure of the chances of getting a 10% deal but have you looked into the Help To Buy equity loan. That is what we are progressing it and means you would only be looking at an LTV of 75%. But if you have a good broker they shpuld be capable of selecting the right lender and rate for you