MB advising need 15% deposit

Live84

Hello all, I’ve just had an offer accepted Of £230,000 for my first property and have a 10% deposit, maybe more if possible. My MB has advised me that I may need a 15% deposit due to my Credit rating which in his words isn’t great but good. It’s about 750 on Experian.

I’m 25 and have about £7000 debt on 2 CC which are paid in full every month, about £200 a month, and also Car finance for £300 a month. I have no Dependats and generally don’t have much outgoings apart from the CC and Car. Last year I touched £52000 earnings but with a pretty high pension contribution from myself and room to bring my outgoings down further. Although I can save a decent amount every month, I’m not sure if I could get another £8000 in the time I have but my MB has said 10% may be ok anyway.

Just checked my Experian report and there is a hard search from Barclays which I assume is where he is getting the 15% deposit from.

Really just seeking a bit of info, I believe I could afford the payments comfortably but just wondering if I am shooting above what I can achieve in the banks eyes?

Thank you.

kingstreet

I've always thought of Barclays as a "we'll do it or we won't do it" kind of lender, rather than taking a "we won't do that, but we'll do this" kind of approach.

Only you, your broker and Barclays know what's going on here, so you need to ask did it pass at 90% or didn't it. I don't know where "may need 15%" comes from. Saying which, if I can avoid Barclays I can. The job is stressful enough without their help.

David_White

Has the broker actually seen your full credit report or have you just told them what the score is?

ACG

If you do not have 15% and Barclays are saying they need 15%, then a new lender needs to be found.

If is not a case of Barclays or 15%, there will be other lenders whos scoring is a little easier to pass I would imagine.

AnotherJoe

What do you mean "have about £7000 debt on 2 CC which are paid in full every month, about £200 a month". Did you mean paid the minimum each month ? Because "in full" would be £7000 wouldn't it ?

I don't how the bank treats it but if you say "I have 23,000 saved oh and I owe 7,000 on cc" that means you really only saved 16,000 because otherwise you could switch another 11,000 to cc and get a your 15% deposit in a heartbeat.

Live84

My credit report was sent over yesterday so ide imagine the MB has sent it to Barclays? Either that or he MB has spoke to Barclays, not entirely sure.

As for paying of in full then no, I’m not paying it off in full but I’m paying significantly more than the Minimum payment. I was just giving my situation and trying to understand why a 15% deposit would be required when my outgoings and that much compared to salary? I pass most affordability calculators online comfortably.

Live84

AnotherJoe wrote: »

What do you mean "have about £7000 debt on 2 CC which are paid in full every month, about £200 a month". Did you mean paid the minimum each month ? Because "in full" would be £7000 wouldn't it ?

I don't how the bank treats it but if you say "I have 23,000 saved oh and I owe 7,000 on cc" that means you really only saved 16,000 because otherwise you could switch another 11,000 to cc and get a your 15% deposit in a heartbeat.

Not sure I follow? Exactly why would I transfer £11,000 to a CC? Do you mean a cash advance? Thanks

ACG

When a lender comes back and says we will only lend 85% (and it is a rounded figure) it usually means that your application has not scored highly enough to get anything above 85% in this instance. It is nothing to do with affordability.

Affordability would be we can only lend £125,472 instead of £132,500 you applied for. That £125k would probably be 82.4% (all of those figures are purely examples). But when it is a rounded figure such as 85% there is usually a reason other than affordability for it.

Live84

ACG wrote: »

When a lender comes back and says we will only lend 85% (and it is a rounded figure) it usually means that your application has not scored highly enough to get anything above 85% in this instance. It is nothing to do with affordability.

Affordability would be we can only lend £125,472 instead of £132,500 you applied for. That £125k would probably be 82.4% (all of those figures are purely examples). But when it is a rounded figure such as 85% there is usually a reason other than affordability for it.

Well yeah the MB said it was my credit report. 758 with Experian. Just trying to see wether this is gonna be across the board right now,

I mean with the figures I’ve put down and no missed payments etc I can’t see why there’s a problem. My credit score was over 900, 6 months ago but I’ve taking out a credit card and tv finance in the past 6 months so that’s why it has dropped.

AnotherJoe

Live84 wrote: »

Not sure I follow? Exactly why would I transfer £11,000 to a CC? Do you mean a cash advance? Thanks

I'm making the point that you say you saved £23k but you owe £7k.
If your credit card debt was £23k would you still say you had saved £23k in "savings" or would you merely have delayed payment and in reality have saved nothing ?

ACG

Ignore the score on your credit reports. The lenders score your application based on their own criteria.

One lender capping you at 85% does not mean they all will so I am sure you will have other potential options.