Broker heads up?

NYClaire

Hi.

My husband and I are hoping to move house. We are going to use a broker but I just wondered if there were any brokers on here that could give us a heads up on our situation/how much we could borrow etc and if we will have a problem obtaining the mortgage.

Combined salaries - £46k
Monthly commitments - Car - £208, bank loan £180
Childcare - £360 (£243 paid in childcare vouchers before tax)

Current have about £20k equity in our current property and with this are hoping to pay £2000 Credir union loan, £1500 credit card and husbands £800 overdraft. Do mortgages companies take this into consideration when deciding how much we can borrow?

Both credit ratings are in excellent, however I know it's the payment history that matters and there has been no missed payments in 4 years (or more). The other thing is there are a few (4) PDLs from 4 years ago (stupidly to try and increase credit rating).

What do you think our chances are? And obtaining 90/95% LTV?

Thank you in advance x

Thrugelmir

NYClaire wrote: »

Current have about £20k equity in our current property and with this are hoping to pay £2000 Credir union loan, £1500 credit card and husbands £800 overdraft. Do mortgages companies take this into consideration when deciding how much we can borrow?

Indeed they do. Along with how you conduct your personal financial affairs. Being in persistant debt, for example, maybe a concern for the lender. Lenders use the available to score you themselves against their own internal criteria. Having a good credit score is meaningless in this context as of no value to the lender.

ACG

I would say you should be able to get somewhere in the region of £180-200k plus your deposit...Ball park.

If you have no missed payments what so ever but a couple of pay day loans then there are some lenders who will decline you outright because of the pay day loans, but 90% should be fine at normal rates as should 95% - but 95% is always a bit 50/50. If you can get a 10% deposit together you will see rates come down by a decent amount.

middleclassbutpoor

I think the OP was asking if lenders would discount them from their calcs on the basis they would be repaid before completion took place?

If that was the question then whilst Im not a broker, I believe from reading on here that it depends on the lender. Some do, some don't.

Work on the basis that you can borrow 4-4.5x your joint income but the credit commitments then reduce this affordability.

The PDL history will be something that will probably that needs consideration - are these showing on all 3 of your credit reports?

NYClaire

Thank you for your replies.

Middleclassbutpoot - as far as I can see the PDL only show on call credit (totally money) they don't appear on Experian (through mse credit club) or clearscore.

middleclassbutpoor

A good broker will know which lenders check which agencies but just being on one will probably help.