First time buyers loan and previous bad credit

RAS

Put in a formal complaint to the company, then escalate.

PartyOfFive

re the it’s a joke comment I mean more the rent we are currently paying than a mortgage. 

I agree. Which is why it's important to get yourself in a position to buy sooner rather than later.
The earlier sort out your credit file and get yourself as debt free as possible, the earlier you can take your first step on the ladder and start paying your mortgage rather than someone elses.

Look - the short of it is that you and your partner have a combined income that is a fair bit higher than the average (even for London). If your main concern is getting a mortgage at a decent rate:

1.  Take deep breath regarding your principles and settle the £600 (remember, if the Ombudsman does eventially find in your favour, you might actually get it back).
2.  Throw as much money as you can at the remaining debt (including student loan) in between now and when you start looking to buy.

Simple short term pain for long-term gain.

tetty177

Thank you for all the advice it’s really appreciated. I think we both have agreed we need to forgo as many “luxuries” as possible to pay off as much of the loan as we can. 

warwick2001

Just one thing to remember. Depending on the lender, overtime (OT) may not be considered when it does an affordability check. Although in the real world we know that the OT isn't going to end soon, if it is not explicitly written in your Hubby's contract as guaranteed hours, then the lender may consider it as additional earning, and it can be excluded. 

This happened to me. I had my base salary, but I worked shifts, so I got a shift allowance, and an OT rate for this. My lender ONLY considered my base salary, as they argued that I could be taken off shifts at any point, or that the OT I worked could be 'finished' if the business decided (the business could also sack me if they decided....). Therefore, the amount I could lend was almost halved due to this.

You state you could lend up to £470k. Have you included the OT your Hubby earns as part of this calculation? You may want to exclude the OT, and then re-assess. Also, like others have suggested, speak to a mortgage broker, as they will know of lenders that will include the OT as part of their calculations.

tetty177

In the calculators I have found they ask for basic salary then overtime and I put in both however I do think it may have said gaurenteed overtime so I may need to reasses and see what comes out. Thanks

MultiFuelBurner

With that much income coming in, if you were to tighten your belts how quickly could you clear all outstanding debt. If home.ownershio is your dream you could.concentrate all your efforts on this👍

However a good mortgage broker can advise you better and no harm contacting one now.