First Time Buyers Help

TSal

Hi,

I am looking for some help following a recently declined AIP.

Me and my partner are looking to purchase our first home. We have a combined income of £34k per annum and are looking to purchase a property in the region of £120,000 with a 95% LTV mortgage.

We currently both have cars on finance. My partner's bank loan is due to be repaid in around 5 months time, paying £130 per month. The issue is, I have recently taken out a Hire Purchase agreement, as I did not anticipate purchasing a property for the next few years, so I am paying £268 a month with £15,500 outstanding.

We have budgeted our outgoings for when we purchase the property and will have a sizeable surplus income after all bills including food and our car payments.

We recently had an AIP rejected by Yorkshire Building Society due to our credit reports, although we have run our own credit reports and have clean records - even our own banks have confirmed this.

Is my Hire Purchase agreement the issue here? If so, is there any chance of us obtaining a mortgage until I have made a few years worth of payments on my HP agreement?

Many thanks in advance.

kingstreet

The loan to value and your credit history influence the risk.

Affordability is affected by your income and credit commitments.

There is no way we can say what the problem is here. Use lender affordability calculators to establish if your proposition is affordable.

Get broker assistance if you want to establish if 95% is achievable.

TSal

kingstreet wrote: »

The loan to value and your credit history influence the risk.

Affordability is affected by your income and credit commitments.

There is no way we can say what the problem is here. Use lender affordability calculators to establish if your proposition is affordable.

Get broker assistance if you want to establish if 95% is achievable.

Thanks King - I think speaking to a broker will definitely my best bet.