Getting a joint mortgage but one of us has high outgoings

BrookesAndrew

Hi there,
Me and my girlfriend got a decision in principle from Nationwide a few days ago. We are first time buyers and both just a bit worried about if we will actually be able to get a mortgage. We are looking at a new build so will get 20 percent help to buy, we have saved 5 percent as well so our mortgage amount is £170,000. I personally have had quite a few things on credit, never missed a payment, always paid on time, this ranges from a credit cards (never more than one at a time), two loans which have been settled early, cars on finance etc. My girlfriend hasn't had as much credit as me but she has never missed a payment, phone on contract plus a car on finance as well. Even though I have never missed a payment I checked on my credit score on Equifax the other day and it said my score was only 375?! I really thought it would be higher.

We are both working full time, I earn £19,000 a year plus get around 3k to 4k commission as well. My girlfriend earns £27,000 and her outgoings are really low. My outgoings are high and this is why I am getting concerned about the mortgage being denied and them saying we cant have it. I earn £1400 a month after tax and thats with no commission. I pay;

£411 (car finance)
£80 (insurance)
£150 (phone, tablet and watch on contract with mobile phone provider)
£66 (phone contract for my Mum)
So thats £700 in outgoings which only leaves £700 for bills. Nationwide said our monthly mortgage payments would be £550 for a 5 year fixed rate mortgage (1.84 percent). We did a quick calculation on what we think bills would be and the bills came to £1100 a month so that is £550 a month I would have to pay. I am worried that Nationwide or whoever we go with for the mortgage would look at this and say I can't afford the mortgage and not give us one. 

My girlfriend gets £1800 a month and only had outgoings of around £400 a month so she would have over £800 spare every month after all the bills are paid. Will the bank look at that and see that as a good thing and make up for my high outgoings?!

Would love to get some advice on this please, do you think its worth me trying to reduce my monthly payments? I can do something with the phone contract I pay for my Mum and settle that but it is really going to make much of a difference? Also I have only a few months left on my car payments (ends in December) but I can get rid of it now and get something cheaper on finance. I don't know if I should do that now or wait until after the mortgage is sorted.

Thank you in advance for all of your help  

Thrugelmir

Mortgage lenders will assess you as a couple. You need to sit down with your partner and discuss whether you should pool your resources. On the understanding that at the earliest opportunity you'll dial back on your outgoings. As that's a lot of money being spent on very little. Far cheaper options are available. The 5 years will soon pass and the HTB loan ultimately needs addressing. 

BrookesAndrew

Thrugelmir said:

Mortgage lenders will assess you as a couple. You need to sit down with your partner and discuss whether you should pool your resources. On the understanding that at the earliest opportunity you'll dial back on your outgoings. As that's a lot of money being spent on very little. Far cheaper options are available. The 5 years will soon pass and the HTB loan ultimately needs addressing. 

Thank you for your reply. I am able to do something about my car now and also the other phone contract so I could potentially save £250 a month. That would mean having a credit check done and I was told to try and not have many credit checks done before applying for a mortgage as it can really affect things. Is it worth doing something about it now or just going ahead with the mortgage application as it is?  

md258

I'm surprised how high your phone/tablet etc payments are. If you can, it might be worth trying to reduce these (as a general plan, not just for the mortgage).

I'm also not sure why you are paying for your mum's phone (and at £66 per month it seems very expensive).

dimbo61

Wow £150 a month for a iPhone ? iPad and fancy watch.
10% of your take home pay and £ 66 for Mums phone on top.
Time to ring your provider and check what the hell your paying for