Mortgage advice

Dk1989

Any professionals here regarding mortgages. I will be applying shortly and was looking opinions on how likely you think it would be that I get one. My credit score with Experian is 999 credit utilisation is 14% I work 32.25hrs per week so get about £21,000 per annum before tax. I have no debt. I have a deposit of £35,000 that was gifted to us. We have seen a house that’s £195,000. Only thing worrying me is my husband is self employed only making around £12/13k a year currently. He has his tax return from April 22. He was in full time permanent employment before this for years. He left and went self employed so he was flexible enough where we both could work. I have applied for universal credit so we can get some help with our daughters childcare ect I’m just waiting on a decision from them. Our landlord has sold our house without much notice so this is something that has to happen quite quickly. Just wanted to see what peoples opinions are. Oh I also have a mortgage in principle. Thank you

ACG

Affordability seems quite tight.
Does the mortgage in principle include childcare costs? Does it also include the universal credit? 

Tricky to say for sure, but if you have left off the UC and put down the childcare and it still passes, it should be fine.
If you have left off the childcare, you need to add that in as an expense. If you have used the UC, have you checked whether the lender will accept and how much? Some will only accept a portion. 

K_S

Dk1989 said:

Any professionals here regarding mortgages. I will be applying shortly and was looking opinions on how likely you think it would be that I get one. My credit score with Experian is 999 credit utilisation is 14% I work 32.25hrs per week so get about £21,000 per annum before tax. I have no debt. I have a deposit of £35,000 that was gifted to us. We have seen a house that’s £195,000. Only thing worrying me is my husband is self employed only making around £12/13k a year currently. He has his tax return from April 22. He was in full time permanent employment before this for years. He left and went self employed so he was flexible enough where we both could work. I have applied for universal credit so we can get some help with our daughters childcare ect I’m just waiting on a decision from them. Our landlord has sold our house without much notice so this is something that has to happen quite quickly. Just wanted to see what peoples opinions are. Oh I also have a mortgage in principle. Thank you

@dk1989 Income of 21k+13k (conservatively, you should be taking the average of the latest 2 years net-profit figures for your husband) plus child-benefit I assume. It isn't clear from your post whether your husband has been trading for at least 2 years which is a requirement with most (but not all) mainstream lenders.

Looking to borrow 160k at 85% LTV.

I agree with ACG about affordability (as per lender calculators) as it looks tight based on the above numbers, even without any childcare commitments. 

It might be worth playing around with a couple of lender affordability calculators to get a very very rough idea of what it looks like.
https://online.accordmortgages.com/public/mortgages/quick_enquiry.do
https://www.santanderforintermediaries.co.uk/calculators-and-forms/affordability/

Having said all that, if you've got an Agreement/Decision In Principle issued by a lender and have filled in everything correctly and as per their criteria, then there's no obvious reason why you wouldn't be able to borrow the amount mentioned on the AIP.

With respect to your living situation, I'm sure you are aware that irrespective of your landlord having sold the property, you don't have to leave on the date he/she specifies, only a court can require you to vacate the property.

Dk1989

K_S thanks for the advice. In regards to your last comment. My landlord has wrote me up a letter saying we have to be out by the 9th november but if we get this new build it won’t be ready until 4 weeks or so after that date. So can we tell him that we aren’t moving until then? A sale has been agreed on this house we are in and I can tell he’s nervous that we won’t leave. I didn’t realise I didn’t have to? That would help a lot if we can stay here until the house is ready as living with family would be a nightmare as we have children too. 

Can I just tell him I’m not leaving?

housebuyer143

Dk1989 said:

K_S thanks for the advice. In regards to your last comment. My landlord has wrote me up a letter saying we have to be out by the 9th november but if we get this new build it won’t be ready until 4 weeks or so after that date. So can we tell him that we aren’t moving until then? A sale has been agreed on this house we are in and I can tell he’s nervous that we won’t leave. I didn’t realise I didn’t have to? That would help a lot if we can stay here until the house is ready as living with family would be a nightmare as we have children too. 

Can I just tell him I’m not leaving?

Yes, legally a landlord can only enforce am eviction notice through the courts. 
So if you explain you cannot leave until a specified date there is nothing they can do apart from starting court proceedings. 

It is very likely the landlord will not pursue court if you explain you are buying and have a rough date you plan to go. 

Being taken to court to enforce an eviction notice will not have any impact on your credit file etc. Just continue to pay your rent.

Dk1989

Thanks so much. That takes some of the pressure off now to just try for the mortgage and hope for the best. Thanks everyone