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Will I likely get approved a mortgage?

edited 30 November -1 at 1:00AM in House Buying, Renting & Selling
37 replies 2.6K views
LawrenceMPALawrenceMPA Forumite
13 posts
edited 30 November -1 at 1:00AM in House Buying, Renting & Selling
I am currently living alone in a council flat but hoping to move out with my gf. I will have about 12k in savings and she will have about 15k.

I earn about 19k plus some over time. I also get approx 800 a month in benefits because I have bipolar. Obviously I won’t be able to get universal credit when we move out because she earns over the threshold at 30k.

When we move out I’ll only get 350 benefits and I don’t know how long this will last.

We want to move out to a place worth about 240k. We’ll pay it in proportion to what we earn. So I think I’ll be paying about 400 which is less than what I pay now but obviously I’ll be earning less. All my benefits go into savings and I rarely need to cut into them.

Problem is I have a bit of a gambling habit and I bet about 20 pounds a week and also spend about 30 quid a week on takeaways/meals out.

Will this likely be a problem? Other than that I am pretty good about money.

TIA
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Replies

  • csgohan4csgohan4 Forumite
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    Regular betting maybe an issue with some lenders, generally you can borrow x4.5 of your gross income, benefits may not be taken into account

    suggest get a good broker to evaluate your options
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ PIxie RIP
  • da_ruleda_rule Forumite
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    Eating out and a wide variety of other things are usually classed as optional rather than compulsory spends in relation to affordability (and it may be that you simply can't afford to anyway).

    Assuming a 10% deposit, your savings would only leave you £3,000 to cover legal costs and move costs. If this is all of your savings then you will also lose any safety net.
  • BossypantsBossypants Forumite
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    The betting might be a problem. A friend of mine was refused because he put £5 on his favourite football team whenever they played, even though it was well within his budget to do so. In the end he had to stop for several months so that he would have 3 months of 'clean' bank statements to show the lender before he could be approved.

    Just one anecdote, of course, and lender policies always vary, but it might be worth considering stopping for a few months before you plan to apply, just in case.
  • You earn £19k in a full time job, with some overtime and £800pm in benefits? Just curious how you are getting money for having a disability that's not preventing you from working?
  • How will you be getting less for moving house?
  • Also your deposit is 8%. Unlikely.
  • asheashe Forumite
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    Go see a broker, they will know which lenders will be more likely to ask for statements. I do matched betting so had about 200k of bets go through my accounts in the 6 months leading up to our application, I was fairly thankful Nationwide didnt ask for statements lol.
  • Also your deposit is 8%. Unlikely.

    Plenty of lenders offering 95% LTV. HSBC being one of the main high street ones, but there's many others.
  • sal_IIIsal_III Forumite
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    Also your deposit is 8%. Unlikely.
    Math fail...
    27k deposit for 240k property isn't 8% you don't even need a calculator to see it's over 10%

    Gambling might be a problem with some lenders, takeaway is not. Also a lot of lenders will not consider benefits, but that shouldn't be a problem since your combined salaries are 49k+ which at 4.5 is enough.

    As others have suggested contact a broker, give him all the facts and listen to his professional opinion.

    I hope you have carefully considered that step, having never lived together with your GF and jumping straight into joint mortgage is a huge step. This board is full of cautionary tails how this can end up very badly.
  • sammyjammysammyjammy Forumite
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    You earn £19k in a full time job, with some overtime and £800pm in benefits? Just curious how you are getting money for having a disability that's not preventing you from working?

    OP is likely in recepit of PIP, its not means tested and it is payable to those in work, what doesn't make sense is why this would drop to £350pm after he moves in with girlfriend....

    Although also mentions UC so maybe lives in London with high rental....
    "You've been reading SOS when it's just your clock reading 5:05 "
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