Chance of a Mortgage

productof80s

Hi all, if I can give you the particulars of my partners and my finances, and maybe see what you think to our chance of a mortgage next year (around Feb)

Combined income of 45K


1 of us has 8K of CC debt and paying off a long-term personal loan around £250 a month.

1 of us is debt free.

We will have savings of around 7K of which we're planning to use for initial solicitor instruction and half of the deposit at exchange. There should be around 6K in equity from our current house.

Typical max house price looking at=160K, 8K deposit@95% LTV

Looking at a NW 95% LTV mortgage. We currently have a mortgaged property with them from many years ago. The NW calculcator says we can borrow 169K, which seems high, but thats what it says.

Does anyone have any tips to the application we'll be making next Feb?

Regards,

Ben

csgohan4

things looking a bit tight, you need to engage a broker as that debt will affect your affordability

ACG

Assuming you have put in your commitments correctly then it should be correct.
Generally speaking you can lend around 4.5x income which would be around £200-210k. Deduct the money you spend on credit cards/loans and £170k does seem about right.

But that is working off limited information.

productof80s

Thanks for all your comments so far- I did think things were tight-ish, so are there any general tips in order to improve our chances.

I guess they are to reduce the CC debt as much as possible before application?

You cannot apply for the 95% LTV NW product online, only a branch or phone job- is that as more information is required?

Working hard it may be possible to get the CC debt down to 6k by application time.

Kind of stuck with NW because going with anyone else will incur ERC fees, then again they seem competitive and one of the more generous lenders- at least compared to some.

Regards,

Ben

ACG

If you are planning on paying down debt just prior to an application, you should maybe speak to nationwide about how they view it.

They tend to look at what the balances are on the credit report which can be a month or so out of date.