First TIme Buyer - Application fears, scared of approaching a broker

scaredycat94

Hi everyone,
I've recently posted this but I'm hoping to get another fresh perspective from some new people or people currently in a similar situation to myself.

I'm a first time buyer - or at least, I want to be. I've found a house I adore, its £115000.
But I am absolutely terrified of the idea of applying for a mortgage.


I only have enough deposit saved for a 95% mortgage to be achievable. So I'd be lending £109,250, and my deposit would be £5750.


Savings in a nutshell:
I have £6000 in a savings account.
£2400 in my Help to Buy ISA (so as it stands right now we can call it £3000 with the bonus added)
I never let my debit account drop below £1500 and try to budget to avoid this.


My debt worries me. Its not unmanageable for me right now. But I don't know how much of a significant effect its going to have on my mortgage chances.
I have a car via VW PCP - this costs me about £270 a month.
I have £3800 on a credit card, 0% interest till 2021 - I currently pay £100 a month towards reducing this.
I have £1800 on a credit card, 0% interest until 2020 - I'd plan to pay this off before my mortgage starts with my savings, but again I pay £100 a month towards reducing this right now.


I've had one single missed credit card payment in my entire life, it only shows up on my Equifax report, I can't see it on any other credit report- it happened 4 years ago on a new card for which I'd simply overlooked my initial direct debit set up and I've been mortified about it ever since.

My credit rating currently shows as excellent on every credit report source I've checked.

Salary wise -
I've been employed by the same company for almost 7 years now. My annual income before tax is £33500. I receive an annual bonus, the value varies based on company and personal performance multipliers etc, but it is usually 6% of my annual salary. for the past 3 years its been between £2000 - £3000.

I guess I just want to get a good idea from someone in the know what my chances are in being successful applying for a mortgage based on what I've summarised here. Or maybe hear from someone who has been in a similar financial situation whether their mortgage application has been a nightmare experience or it was fine.

I've got a MIP from my bank, Barclays, after giving them the information I've quoted in this message for 109250, but I just don't really know how much I can rely on this. Same goes for Natwest, Virgin money, and 'Trussle'. I'm scared of approaching a mortgage broker face to face as I'm embarrassed about my debt ( I don't know if its bad or not really, but does anyone really like to talk about it regardless???)


And whether it makes any difference or not, I'm 25, I'd be hoping for a mortgage over 25 years but 30 would be fine.


Any help/advice/criticism etc is welcome.


Thanks!

kingstreet

Previous;-

https://forums.moneysavingexpert.com/discussion/5997590/ftb-and-absolutely-petrified

BoGoF

You are not going to get much different replies, it tends to be the same people that frequent these boards.

ACG

As with your last post, you should be fine and are in a far better position than many.

If you are that worried, it could be worth getting a broker. It may help reduce the stress and having someone on your side if/when a problem arises can be helpful.

I can only speak personally but we only get paid if we get a mortgage offered. That means if we believe there is not a hope for your application, we tell you and do not take the case on. As mercenary as that sounds, we have bills to pay and need to be confident we can get your mortgage offered and completed.

csgohan4

OP get a broker, there's no way round it if your apprehensive about mortgages as you probably need your hand held.

[Deleted User]

The numbers appear absolutely fine and I cant see your ability to raise the finance to be any issue.

A broker will come in handy for you as the uncertainty doesnt stop with a mortgage application. Youve got 12 weeks of legal hoops to jump though to get a house. Find someone who has done this hundreds of times and your life will be a lot easier. Even if you have afamily member who knows what they are doing cause they have bought and sold 'loads' of houses. A decent broker will have done this hundreds and hundreds of times and will answer any question you have without making you feel silly.

I get all sorts of questions and putting someones mind at rest at 9pm with a message that takes me 2 minutes but saves them being awake all night is a huge part of the job.

Your financial position is good, just get someone with experience to help you along the way

scaredycat94

Thanks very much for your reply - you have been very reassuring

Thrugelmir

scaredycat94 wrote: »

My debt worries me.

Worth planning on clearing it as soon as you can. Home ownership isn't just a question of paying the mortgage. Any number of issues can arise. Life likewise can throw up financial related issues when you are least expecting them.

butterflybook

You should be fine - Try not to worry too much when you choose a broker they will take the worry and stress away for you :-)