Mortgages/decision in principle

1984RMC

Hi everyone!!
Don't know what advice I'm exactly looking for but very stressful day!!
Some background information: looking to buy our first home. Partner will be sole applicant as I have adverse credit history so absolutely no point in me applying! He earns not a huge amount anually(22,000) we have a small deposit we can put down(5,000). He went to the bank few weeks back for a mortgage in principal which came back as 90,000. Found a lovely house which was up for 115,000. We put in (cheekily) the offer of 90,000 which was accepted. Very shocked!! Went to the bank again today and depressingly told that they could lend just 75,000!! The lady at the bank was quite shocked as he had been told a higher amount, and she was even more confused as we never had the certificate printed off previously. So now, I have had to send an email to estate agents of situation. We were in touch with a mortgage advisor a few months back who found him some lenders willing to lend him a good amount, but he decided to go to his own bank instead. I have now sent her an email too, just incase she can help, but so depressed tonight!! Has anyone been in similar situation to this, and if so what outcome? Just done a quick calculation with Santander and they can offer him a whopping 18,000😂arghhhhhhhh!!!

highguyuk

Very frustrating.

I'd approach some specialist mortgage brokers to see if they can assist.

1984RMC

Thank you!!
Yep I think it's what I'm going to look about doing today, didn't think this would be this stressful.

haras_nosirrah

Which bank have you tried. Are there any children or debts to be factored in?

haras_nosirrah

based on no kids, no debts, 95% ltv and a 22k salary I am getting a max loan of £98780 on a calculator

If this is a flat then service charge would need to be factored in but what you are looking to do looks possible

Mutton_Geoff

haras_nosirrah wrote: »

based on no kids, no debts, 95% ltv and a 22k salary I am getting a max loan of £98780 on a calculator

If this is a flat then service charge would need to be factored in but what you are looking to do looks possible

That might be the basic sum, but then isn't that factored for affordability? Since £22k is quite a low salary, homeowner basics like council tax, utilities etc are going to eat up quite a bit of disposable income leaving much less for the mortgage payments.


95% LTV is also high, especially on a low value home (£100k) since almost anyone could lay their hands on £5k via an unsecured loan so this may fall in the bracket of irresponsible lending hence the low offer from the lender.

Exodi

With quite a small deposit, please be wary that you will also need a few thousand more for the other various components of buying a house, including;

- Conveyancing/Searches ~ £1500
- Survey ~£500
- Removal Costs ~£400

Plus, the bills will start straight away so you need some money put to the side for bills (and some sort of contingency fund for the inevitable 'hold on..... the bloody loo don't work!').

haras_nosirrah

That was using a lenders calculator who don't factor in a partner not on the mortgage as a dependent. Subject to the finer details e.g. any outstanding debts or kids this should be doable.

Not all lenders penalise for a small deposit (although a lot do)

haras_nosirrah

Mutton_Geoff wrote: »

95% LTV is also high, especially on a low value home (£100k) since almost anyone could lay their hands on £5k via an unsecured loan so this may fall in the bracket of irresponsible lending hence the low offer from the lender.

A low value home doesn't come into it and we require proof of deposit as most lenders don't accept loan as deposit (although some do)

If a low value home and small deposit was irresponsible lending then the whole of the north east would be unable to buy a house

1984RMC

Hi HSBC, my partner had been with them for 25 years since he started his first job at age 16(the job he is still in now) we have a 16 year old and 13 year old) no debts etc and good credit history .x

1984RMC

Thanks for reply. I have been on so many calculators last night and today it's unreal!!I it's a two bed cottage with large attic room, it looks like a trip to banks again tomorrow🤪