Can any mortgage brokers help answer this question please?

JustJane101

Hello.

I recieved an initial DIP from Kensington for a max property value of £110,000, with a max loan amount of £102,500.

My offer was accepted at £107,000. The house is valued on the home report at £105,000. Unsure what the mortgage valuation has come back as. Since the DIP has come back, i've now had to change my deposit source to the Forces Help To Buy. I've applied for max £8500 to cover legal/broker/ 5% deposit fees. I can get away with using only the 5% deposit if I need to, but I'll be better of in the long run if I take the full £8.5k as what I have can go to servicing the property with gas right away, and will save me at least £30 a month on heating!

This would amount to payments of £70 a month, which is more than affordable, even with budgeting £300 to go into savings a month. My mortgage broker has said this "shouldn't" affect affordability, but we won't know for sure until the help to buy has been accepted. But I've had so many setbacks in this process already, I'm so anxious. How do Kensington work out affordability? If they've given me the DIP for max loan of £102,500 and I only take 99,500 mortgage, will that effectivly "cover" £3000 on the affordability? I've emailed my broker, but as you can all imagine with the current virus, I really don't want to push too much. I earn 26k per year, have around £2500 revolving credit (0% credit card for £1600 and the rest is my credit builder card I pay in full each month). Factoring in mortgage, home insurance, car insurance/fuel, electric, council tax, food and emergencies budget I'll be looking at around £650 a month left over, with the added bonus that work will pay me an extra £70 a month for commuting which I haven't included in my budget. Plus, I get an £800 per year pay rise in may.

If anyone can give me some help, this would be greatly appreciated!

amnblog

Little baffled here.
Why do you need the H2B acceptance before you know if it fits on affordability. The calculator is available for your or your broker’s use.
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/842374/Published_Outside_Lond_HTB_Equity_Loan_Calc_20_UPLOAD.xlsm

As is the Kensington mortgages affordability calculator.

https://www.kensingtonmortgages.co.uk/intermediaries/calculators/residential

ACG

If you are using Kensington, you presumably have a broker? 
Why are you not asking your broker? 

JustJane101

ACG said:

If you are using Kensington, you presumably have a broker? 
Why are you not asking your broker? 

I really don't want to keep annoying them, I've sent them about 100 thousand questions!!!

JustJane101

I did email, but haven't had a response yet