Mortgage approval with a credit balance? Success stories?

Gem_M90

Hi, 
I'm just looking for anyone's experiences of getting a mortgage approval despite having a credit balance. 
I'm currently awaiting approval from Halifax to purchase a new build I've reserved. Myself and my partner are FTBs but the application is in my name only due to poor credit on his part, so the application is based on my earnings of 30k/year. 
I am receiving just under 30k from the Help to Buy scheme, have a deposit of 33k and I'm looking for a mortgage of 134k, therefore 68% LTV. 
I'm using the broker recommended by the property builder (I did have another broker previously who got me my AIP but he didn't deal with Help to buy so I had to swap). Anyway, application went through on 13th August and it was passed to Halifax underwriters. I'm still waiting but really worried about credit utilisation when the application is based on 1 income. All in I have 2 credit cards (1 with no balance and 1 with £800, total limit £5500) and 3 mail order/catalogue accounts with around £4800 across all (used for furniture purchases etc..). I also have a loan I pay £150/month to (ends August 2022) and a student loan which comes off at around £70/month. Ive never missed a payment on anything and have a very good credit score. 
I know all applications are unique but I just wondered if there's anyone had success who are in "worse" positions? Trying to stay calm. 

Girlisgettingthere

My partner just got a mortgage through Halifax with quite a bit of debt (due to complete on new home on friday). He was 75% LTV and has 2 x credit cards (1 with £6500 balance and 1 with £1450 balance) plus two loans that he pays around £200 a month to. If anything Halifax will issue the mortgage offer with a condition attached that you must pay x amount of debt before they will release the funds- I know my Uncle has this and they said he had to pay off his car finance before they would release funds (halifax too) he didn't and they didn't bother to check but not sure of thats always the case..

Thrugelmir

Gem_M90 said:

I know all applications are unique but I just wondered if there's anyone had success who are in "worse" positions? 

What's the source of the deposit?

Gem_M90

Girlisgettingthere said:

My partner just got a mortgage through Halifax with quite a bit of debt (due to complete on new home on friday). He was 75% LTV and has 2 x credit cards (1 with £6500 balance and 1 with £1450 balance) plus two loans that he pays around £200 a month to. If anything Halifax will issue the mortgage offer with a condition attached that you must pay x amount of debt before they will release the funds- I know my Uncle has this and they said he had to pay off his car finance before they would release funds (halifax too) he didn't and they didn't bother to check but not sure of thats always the case..

Ah that's a reassuring story, thank you. I know brokers know what they're doing but I just have the worst fear that it's too much to go on one income, despite the fact we pay £150 more/month in rent than what the mortgage will be and manage just fine financially. Its so frustrating (partner's silly little defaults were all caused in a previous relationship). 

Gem_M90

Thrugelmir said:

Gem_M90 said:

I know all applications are unique but I just wondered if there's anyone had success who are in "worse" positions? 

What's the source of the deposit?

Thrugelmir partly savings and largely gifted from parents. I cant use the savings to pay any of the balances as the £134k mortgage is the most I can get on my own so I need the full deposit, otherwise that's what I'd do. 

Girlisgettingthere

Gem_M90 said:

Girlisgettingthere said:

My partner just got a mortgage through Halifax with quite a bit of debt (due to complete on new home on friday). He was 75% LTV and has 2 x credit cards (1 with £6500 balance and 1 with £1450 balance) plus two loans that he pays around £200 a month to. If anything Halifax will issue the mortgage offer with a condition attached that you must pay x amount of debt before they will release the funds- I know my Uncle has this and they said he had to pay off his car finance before they would release funds (halifax too) he didn't and they didn't bother to check but not sure of thats always the case..

Ah that's a reassuring story, thank you. I know brokers know what they're doing but I just have the worst fear that it's too much to go on one income, despite the fact we pay £150 more/month in rent than what the mortgage will be and manage just fine financially. Its so frustrating (partner's silly little defaults were all caused in a previous relationship). 

I'm pretty sure if you have an AIP with Halifax that means they have already checked affordability. I doubt they would decline for this but instead add a condition to the offer? As long as your broker has filled in the details correctly for your current monthly credit commitments then you should be fine and will have passed affordability.  Fingers crossed and hope all goes well for you.

Gem_M90

Still haven't heard a thing today, driving myself mental now! Actually fed up listening to my own worries 😂