First time buyer: puzzled about bank's AIP offer

WriterLex

Hi everyone,

This is my first post. I am genuinely puzzled by my AIP offer from HSBC this evening. I am looking to buy my first property this year, and I work full time in London as a teacher on a permanent contract earning 56,000 pa. Apart from a three year gap where I was doing an MA and writing books/working part-time, I have been teaching full-time since 2002.

Basically, the mortgage calculator suggested HSBC would probably offer me an amount between £180k-£250k, based on multiples of my income. I filled in the online AIP form, stating all my outgoings (my net income is currently £3,300 a month but the rent payment on the flat I live in with my husband is £1950, and that goes out of my account whereas other outgoings and expenses go out of his to make up his share.) I should say I have applied for a mortgage as a sole applicant as I am 41 but my husband is 66 and retired. He has income from savings but doesn't work. I thought I would probably get a better deal doing this solo.

I have about £50k to put down on a property and have been looking at houses in the £250-£300k bracket as a consequence, so hoping HSBC would lend about £200-£225k at the end of the day.

But here's the kicker.

The AIP amount I was offered was £74600, eg about 1.3 times my salary. Very taken aback. This is about 1/3 of what I had thought would be normal.

My credit rating is Excellent and will be even better when my recent registration on the electoral roll goes through this month - it is 972/999, with the only negative influencer being that I am not on the electoral roll at our current flat . Now, I've read about people being REFUSED an AIP on the basis of not being on the electoral roll, but is it in any way possible that they've offered me such a tiny amount because of this? The other issue I wondered about was the career break - went from a salary of 45k pa in 2015 to nothing on a sabbatical year, then back up to about 23k for mid 2016-2018. I've been back on my current salary for a year now.

Has anyone else had this experience? Am I missing something? I feel very anxious.

WL

MovingForwards

Did you put your rent and other bills in as monthly expenses?

You should be on the electoral roll. Get registering.

Your credit score means nothing, it's the credit history what counts. Any defaults, late/missed payments, IVA / CCJ /bankruptcy?

I would recommend you speak with an independent whole of market broker as they should be able to find you a suitable mortgage.

amnblog

Have you stated £1,950 per month rental ongoing after purchase?

That is most likely the issue if so.

By the way, you don't need to leave your Partner out of the purchase. Age differences can be managed. Some Lenders will work based on your age.

Exodi

amnblog wrote: »

Have you stated £1,950 per month rental ongoing after purchase

This was my first thought also, rent shouldn't have even been mentioned for the AIP (or the offer).