What are my chances?

Hobicore

Hi everyone,

could anyone give me an idea of how likely my boyfriend and I would be accepted for a mortgage in Northern Ireland.

our current position:

Both first time buyers.

Seeking no more than £300k (250k-300k budget) at LTV 90% (30k deposit)

Applicant 1:
47k salary (not including overtime/bonus)
Excellent credit score on all 3 credit ref agencies
No adverse credit 

Debt to income ratio of 20%

Applicant 2:
35k salary (not including overtime/bonus)
Fair credit scores on all 3 credit ref agencies (working on increasing these)
Adverse credit on file:
non paid default of £800 on a telecommunications, default recorded 3 years ago.
payday loan of £200 taken for 1 month over 5 years ago.
debt to income ratio of 19%

We are quite limited in regards to lenders as in Northern Ireland but we both have an above average salary compared to others in Northern Ireland.

Are we being too optimistic for the loan value? 

Many thanks!!

Redwino222

What age are you both and what is your monthly debt repayment amount, and what is it for?

amounts seem reasonable on the deface of it, but you would be best to make an appointment with a mortgage broker just to chat through your options.

Hobicore

Redwino222 said:

What age are you both and what is your monthly debt repayment amount, and what is it for?

amounts seem reasonable on the deface of it, but you would be best to make an appointment with a mortgage broker just to chat through your options.

Many thanks for the reply! We are 28 and 30. We don’t have any debt actually the debt to income ratio includes our expected mortgage payments when we include overtime/ bonus. 

We are both Chartered Accountants, mainly worried about second applicants adverse credit.

We will try to set up a meeting with a broker in the coming weeks. 

K_S

@hobicore You should be absolutely fine affordability wise. The default complicates things slightly given that you want a 90% LTV mortgage and that it's a much smaller pool of lenders due to being NI but you should still have options barring anything else in the background.

I would recommend getting in touch with a broker who can look at the whole scenario, applicant 2's credit file and then take it from there.

Hobicore

K_S said:

@hobicore You should be absolutely fine affordability wise. The default complicates things slightly given that you want a 90% LTV mortgage and that it's a much smaller pool of lenders due to being NI but you should still have options barring anything else in the background.

I would recommend getting in touch with a broker who can look at the whole scenario, applicant 2's credit file and then take it from there.

Many thanks for the reply! Yes, I wish we had started saving earlier but we have gathered 30k quite quickly so maybe by the time we find a house we like we could have a lot more but we do have an option of gifting from the parentals but was intending on using their generosity for some furniture! 

Many thanks for the advice!

K_S

Hobicore said:

K_S said:

@hobicore You should be absolutely fine affordability wise. The default complicates things slightly given that you want a 90% LTV mortgage and that it's a much smaller pool of lenders due to being NI but you should still have options barring anything else in the background.

I would recommend getting in touch with a broker who can look at the whole scenario, applicant 2's credit file and then take it from there.

Many thanks for the reply! Yes, I wish we had started saving earlier but we have gathered 30k quite quickly so maybe by the time we find a house we like we could have a lot more but we do have an option of gifting from the parentals but was intending on using their generosity for some furniture! 

Many thanks for the advice!

@hobicore For further reassurance re: affordability, you can safely ignore the DTI as you have calculated it, that should not be a factor given that you have no current debt. As young CAs, you may also have access to professional products where there is even more flexibility affordability wise. Good luck!

getmore4less

Hobicore said:

K_S said:

@hobicore You should be absolutely fine affordability wise. The default complicates things slightly given that you want a 90% LTV mortgage and that it's a much smaller pool of lenders due to being NI but you should still have options barring anything else in the background.

I would recommend getting in touch with a broker who can look at the whole scenario, applicant 2's credit file and then take it from there.

Many thanks for the reply! Yes, I wish we had started saving earlier but we have gathered 30k quite quickly so maybe by the time we find a house we like we could have a lot more but we do have an option of gifting from the parentals but was intending on using their generosity for some furniture! 

Many thanks for the advice!

With ~£5k min net (before pensions bonus OT) and a decent savings rate I would focus on getting the deposit up to get the rate down

How long to get to 85% LTV then 80%

what rate can you get your savings upto if you cutback everything, 


you can build up your furniture stock once you are in


Even full £300k at 4% over 30 years, under £1,500pm so plenty left to save, buy stuff, overpay

what are the typical rates in NI for 90%,85%,80%LTVs

trimming 0.5% off the rate is ~£3k over 2 years