Sence Check My Numbers

scholesfan88

Hi

Need some help from those in the know, I've been to see a property today and would like to make an offer. However I'm now in meltdown over wether my numbers are correct and I'd be accepted for a mortgage.

House price £130k
Deposit £6.5k (95% LTV)
Income £37.5k
Debts (HP) £544 monthly
Debts (CC) £380 but just paid £150 so takes it to £160 and will be cleared next month
Debts (BNPL) Very account £480 not due until next year
No dependants
Outgoings around £100 in fuel and £60 in car tax and insurance
Living with parents so no rent or utilities to pay
Most of my spare income has been spent on clothes, gadgets, crap apart from the last month where I've been saving hard and spent virtually nothing apart from necessities. Previous bank statements will look poor apart from this months. Deposit has come from what I've saved since last payday (£1300) and what I've accumulated over time.

I have 1 missed payment (2 months in a row) on a phone contract, was told no further billing and so cancelled DD. Provider then tried charging for a final bill, hence the missed payment. This was paid off as soon as they sent a letter asking for it and was settled March 2016.

Affordability calculators seem to vary wildly. Some saying I can borrow up to £160k, others saying as little as £44k.

Help!

SF

csgohan4

That seems a bit tight, generally you can lend x4.5 your income without debt, I hope you have some extra money for solicitors fees, moving costs e.t.c

Get a broker to see what they can do for you

scholesfan88

Thanks for coming back to me.

Total debt stands at £22k which is car finance mainly.

I get paid in 2 weeks which will cover the legal fees and moving fees are minimal as this is my first house.

Officially down as living with parents however I'm in a serviced apartment paid for by my works Mon-Fri due to working away on secondment.

ACG

Credit cards usually go off the balance and loans the repayments when assessing affordability.

Affordability calculators can vary massively, here is an example of how the loan amounts can vary for the same person, £120k difference for the same case.


It sounds feasible. You may find some lenders will decline you outright because of the amount of debt but I would expect you to get a mortgage through at normal rates.

GavL

I’m similar in terms of mortgage required vs earnings/debts, except monthly outgoings. I had enough for 10% deposit but broker advised paying off debts with it to free up affordability.
The least outgoings you can go into it with will help as far as I understand.
Good luck.

scholesfan88

Thank you ACG, that's reassuring.

I've just booked an appointment with a local broker to sort it out. I'm usually reluctant to pay fee's for things like this however the broker states he's only charged a fee twice this year and if one applies then it's £295. In the grand scheme of things, I can live with that.