FTB Mortgage stress

weallhaveflaws

applied for a ftb mortgage with tsb for a property costing £121,000 loan amount 108,500. fixed for 3 years at 2.44%. The bank have gotten back to me on friday to say they have rechecked and can now only offer 107,000 after assessing my finances. I would need to now come up with the shortfall in next 3/4 weeks.


I dont know what to do as I just got back from usa (holiday was planned long before i knew i was gonna get this house), finances are tight especially considering moving cost and all of that. The broker (L and C) has advised they can find other lenders but obviously will need to start over process and hope for the best. Plus not sure if vendor will be happy to wait.

Any recommendations or suggestions to what you would do in this situation?

i am a single parent with a 12 year old, not a joint mortgage.

ACG

Can you find the difference?
If you can find it, are you happy to?
If not, then you need to look for plan B.

Can you extend the term of the mortgage to increase the loan?
What has caused the reduction? Affordability gets checked before an application goes in, so something has been done wrong/changed or missed.

weallhaveflaws

im not sure if i can afford it based on the time they are giving me (supposedly can be exchanging in 3/4 weeks) not sure. everything seems so complicated.

I wouldnt be happy to either, as I still think the house is a little overpriced but wanted to ensure that my offer was accepted as a few other buyers had viewed and I was made to think it would be competitive.

is my best plan b trying with another bank?
its on a 30 year term at the moment and im 33 so not sure if i can extend it much further?

Im not sure what has caused reduction, because my salary actually went up as of April and the only thing that is different is they have had two tax credits statements (2018) and (2019) which is less by just under £30 monthly.

However I have just logged in hmrc and my tax credit is going up by over 200 pounds but i dont have the new award notice available yet to send off.

Frugal_Saver

Hi, I’m also a FTB nervously awaiting a decision on my mortgage.

I’m a similar age to you and looking to borrow a similar amount. I was told by my mortgage broker I would need to take it out over 35 years to meet affordability criteria. Perhaps this is an option for you.

Good luck, hope you get it sorted