Help with mortgage application

MJK47

I’d be really grateful for some advice, I have an application in with Aldermore (we are currently on DMP) and they have asked for an explanation around our credit card usage. Usually these are used throughout the year for day to day living and paid off in full once a year when my bonus payment is received. This year we have put the bonus payment towards the house deposit.

This is kind of our last chance for a mortgage due to age (both mid 50s) and affordability is fine (joint salaries around £125k), mortgage £360k with 15% deposit (£63k) plus we have money for fees etc and we are desperate to move out of an expensive rental property.

Please could you offer some advice on the best possible way we can explain the CC usage. Our mortgage advisor hasn’t really offered any help on this.

Thank you I’m advance

Whats_your_forte

You have to ask yourself the question what is the real usage of the credit card. Whilst you stated day-to-day living, are these actual day-to-day costs like bills and food or is it treats now and again?

Most people on credit cards spending them on luxury items and/or trips but either way, just detail the expenditure as it happens because if the lender then asks for sight of credit card statements, you may have provided conflicting information

ACG

I think Aldermore may have an issue with this.
You are living beyond your means and relying on a bonus to clear the debt. The bonus is not guaranteed and you are now by the sounds of it carrying the debt forward because the money you rely on is going elsewhere - so what happens if the car breaks, boiler breaks etc?

I am not saying you wont get a mortgage nor that should not be eligible for one, but Aldermore in my experience are a little on the firm side with a lot of things and this is one of them.

You obviously cant lie, but I would hope your broker has a way of buttering it up to make it sound better but in this case I am not sure there is a way to make this appear better than it is.

MJK47

Honestly, I could kick myself, I hardly use the cards and pay over the minimum payment each month, I should have sorted this out long ago, paid them off.

Thrugelmir

MJK47 wrote: »

I have an application in with Aldermore (we are currently on DMP) and they have asked for an explanation around our credit card usage. Usually these are used throughout the year for day to day living and paid off in full once a year when my bonus payment is received.

Given your salaries and the circumstances you have found yourselves in. An underwriter may well have severe reservations as to how you manage your personal finances. Only you can provide an explanation as to why you live life on the edge so to speak.

ACG

See how you get on. I am not right 100% of the time, part of the reason I come on here is to learn myself. If you come on here next week and say we have a mortgage offer, you (ie me) dont have a clue what you are talking about, I will be congratulating you.

I think there are more relaxed lenders out there but there is no guarantee you would be accepted there either. See how you go, but I think I would be looking for a Plan B to be honest.

MJK47

Thanks all. I am not expecting a good outcome. Not sure what plan B is yet!