FTB mortgage application worries?

DannyS_2

Hi,

I am a 22year old professional, in a job earning £28k PA basic + £4k commission [estimated], with another self employed job on £10k PA [though did not declare this on mortgage application as mortgage calculator did not think I would need to] and had an offer accepted on a flat a few weeks ago, for £145k. 1 bedroom etc etc, absolutely great. I have a 10% deposit, all my stamp duty, solicitor fees sat in the bank. I applied for a RBoS mortgage [interest only, tracker] through a mortgage advisor that came recommended to me just over a week ago.

I received an update from the mortgage advisor saying that RBoS had passed the case to underwriters and they were awaiting a decision? Is this fairly standard practice for someone of my age? I have checked my equifax and experian credit files and all were fine, all "green", except 1 "warning" from vodafone in 2005 due to a missed payment [they actually cocked up the Direct Debit.] and i can see that RBoS have done a search on me?

I am just slightly baffled as to why my case would be passed to underwriters and why it has been with them for 4 working days now still without a decision!

I had £2k on a interest free [until april] Halifax credit card, £1k has been transferred to a HSBC credit card [0% for 18 months, expires September 09] and will be paying the remaining £1k off the Halifax card when the interest free period is up, could this be what is affecting my application? Also what are the affects of being refused a mortgage? Will this blackmark me on future applications should I look at going to other lenders?

Cheers

DannyS_2

To note as well, I have been in my current employment for 18 months.

merlinthehappypig

All mortgage applications get passed to the underwriters for a decision. You haven't been singled out - it's nothing to worry about and all perfectly normal. Four working days isn't unusual either.

kriss_boy

I found it difficult to get my first mortgage despite having no debt and a decent income to pay off the reasonably low mortgage.

When I phoned up experian to cancel my account they asked for feedback. I said I was surprised my credit score was so horrifically bad (790 on a scale of 1-1000. 100 being worst) and the guy said it was because I had so many credit cards.

Ive basically had about 5 cards for the last 6 years so he said that because I had about 30 grand worth of credit at my fingertips this makes me a worrying prospect for lenders.

Cazza

DannyS, this is perfectly normal, nothing to worry about at all! As far as being declined a mortgage is concerned, even if this did happen (and it sounds unlikely!) it wouldn't show on your credit report, so nothing to worry about there either! Mortgage applications take c10 working days to go to Offer usually anyway, so you're doing fine!

kunekune

Flat at 145K
10% deposit
Income declared at 28K

What multiple is that? Eek. You are looking at nigh on 1000 a month. What is your take-home? It's has to be less than 2000 (I'm on just under 40K and my take home, after pension tbh, is 2300). If I was a lender, I'd be checking, sorry. You might know you can afford it because of the second job, but they don't. Unless, I suppose, you are trying for interest only. In which case I'd say don't be so effing stupid. You borrow money, you pay it back, don't rely on inflation to do it for you.

firsttimetom

His take home is £1660 from job, which would be tight with £1000 per month, but you have got possible commisions and a 10k self employment. Without comissions, take home would still be over £2250 which is comfortable enough. After the £4000 commision take home would be £2500.

May I just ask what you do OP? Thats a nicely paid job for a 22 year old (im 23). Puts my £15,000 shop wage to shame. Luckily, like you I also run my own business, which doubles this figure. Still can't afford a house though!

SimPaul

You want £145k, you earn £28k (g'teed). Say salary x 5 being max available = £140k plus one time the commission (if you can prove it) so you're probably ok for the money, depending on the lender. I don't think the delay is anything to worry about.

DannyS_2

Hi all,

Many thanks for the input!

Just to note, the monthly payments on interest only [on current interest rates] is £620 PCM, I take home approx £1800 from day job and additional £800 from secondary job. I will be aiming to pay off £2000 a year [mortgage allows upto 10% of balance paid off a year] too. As this flat is only likely to be a short term purchase of 2-3 years there was no point going on repayment.

Thanks Again

DannyS_2

firsttimetom wrote: »

His take home is £1660 from job, which would be tight with £1000 per month, but you have got possible commisions and a 10k self employment. Without comissions, take home would still be over £2250 which is comfortable enough. After the £4000 commision take home would be £2500.

May I just ask what you do OP? Thats a nicely paid job for a 22 year old (im 23). Puts my £15,000 shop wage to shame. Luckily, like you I also run my own business, which doubles this figure. Still can't afford a house though!

Account manager for an IT consultancy company, very small firm and I just knew the right people and was plucked out of my old job! Part time job is 1 night a week DJ'ing in a local nightclub.

SquatNow

OK, lets make this clear.

Ignore the DJ job... could easily go to someone else.

Your looking at a 5 times mortgage, taking up AT LEAST 40% of your pay.

Your nuts. Walk away, keep saving, wait out the crash.