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Mortgage in principle

(18 Posts)
monsieurpoirot Mon 24-Apr-17 19:41:21

Can anyone talk me through this? Can I get one on line, but then go through a broker to actually apply for a mortgage? What expenses are included? Will they do a credit check and does that matter? Should I pay off a 2 k 0% cc balance with savings or will this not matter too much?

I'm looking for a 300 000 mortgage, seen monthly repayments which are easily affordable to us, but then looked based on our income and it said 200 000 so not sure now.

Will just being back from maternity leave affect anything?

TIA!

GardenGeek Mon 24-Apr-17 19:48:29

I am no expert as on first time journey of this too. We just got full offer accepted last week so very happy and not as difficult as it seems at the time grin

Pay off your debts obviously.

You can go to brokers or go direct. Credit checks are soft search atm so don't worry about that.

You definitely need to use income mortgage calculators as they are all about affordability is interest where to go to 6-8%. Its not about affordability now, its a stress test for future.

Maternity leave not sure but they will take into account future childcare based on national averages.

monsieurpoirot Mon 24-Apr-17 19:53:09

Thank you smile. Do you know what percentage of your income the 8% interest rate can be? Do they look at things like gym membership (which obviously is cancel if needed)

monsieurpoirot Mon 24-Apr-17 19:54:12

We are very fortunate to gave grand parent child care. Would they still 'charge' us for it though?

monsieurpoirot Mon 24-Apr-17 19:54:47

The lender I mean based on national averages?

Bubblesblue Mon 24-Apr-17 19:55:57

Iirc Try not to do too many applications too close together as it can impact on your credit score. IME The broker did a separate mortgage in principle application even though we had one from a high street bank (didn't impact credit score).

Good luck!

rosie1959 Mon 24-Apr-17 20:01:44

A good independent Mortgage broker may have access to deals with lenders that you cannot get on line yourself

monsieurpoirot Mon 24-Apr-17 20:08:05

Maybe I should just see the mortgage brokers first off then?Or should I phone our current mortgage provider to try sand extend (double) our current mortgage? Everything's changed since we last did this!!

Shortdarkandfeisty Mon 24-Apr-17 20:11:24

Don't worry about the £2k, as long as it's paid on time every month. They may slightly reduce the amount you can borrow as a result but I wouldn't expect it to make much difference

Make sure your bank account is conducted well, i.e. No unauthorised overdraft or declined payments

Cut your spending if you can to show your disposable income as high as possible

Free childcare is a good thing

A broker will be able to access better deals and should be up front with you about their fees if any

Shortdarkandfeisty Mon 24-Apr-17 20:12:45

MMR is a PITA for sure

www.uswitch.com/mortgages/guides/mortgage-market-review/

rosie1959 Mon 24-Apr-17 20:13:44

You could do both ask your current lender what they can offer and also ask an Independent mortgage broker what they could get you
Check family and friends for recommendations of a Broker A good broker should not charge for this service they usually charge fees only on an offer being made from the lender

monsieurpoirot Mon 24-Apr-17 20:26:23

I've been doing a few of the banks online affordability calculators this evening and the amount varies from 210-344 k. Crazy! Even at 8% the repayment would be half our monthly income for 300 k so surely that counts as (just about) affordable?? Think a broker is the sensible way to go smile Thanks for all the advice

GardenGeek Mon 24-Apr-17 22:47:34

I am not sure sorry what the % of income threshold is; but to when I put in ours it comes to just £100 less than half our take home at 8% so yours sounds about right.

I am sure if you say no childcare as grandparents they might not include it but then not sure really.

Tbh we were a bit lazy and went to a couple of banks rather than a broker and had varying experiences of professionalism so went with who we thought gave best service (and who happened to have lowest rates) - which was HSBC. I think they said you can only go direct to them so its worth checking out what they have to offer.

GardenGeek Mon 24-Apr-17 22:51:02

Also they do look at gym, literally everything down to magazine subscriptions, current internet, gas, leccy, tv packages, app purchases, life insurance, other cover - home / car, travel costs to work, how much you spend on clothes, how much on food etc.

Whether we smoked was a weird question.

It was pretty intense, I found the MA affordability calculator pretty similar so maybe look at that.

Maggy74653 Tue 25-Apr-17 14:43:45

We went through a broker and he literally sorted out everything for us. Couldn't recommend it enough, even when we had everything fall through on our chain and had to get a bigger mortgage in a hurry because we bought a different property he sorted it out really quickly and with no fuss. Compared to the last time we bought a house it was so much simpler than going to the banks. I would always use a broker in future.

monsieurpoirot Tue 25-Apr-17 15:04:23

Can a broker access mortgages that lend you a bit more than normal banks would. Our house just been valued a bit less than we were hoping sad Our situation is slightly unusual and I will be getting a big pay rise next year. Plus we have a 50% deposit. Or is that a definite no after MMR?

Okkitokkiunga Tue 25-Apr-17 15:06:58

If you try London & Country they don't charge anything and will work through all options. They look at loads of mortgage companies. They were fab for us. We had a house of non traditional construction so mortgages hard to find.

Okkitokkiunga Tue 25-Apr-17 15:07:51

Oh and to answer your question our bank would of lent us far less than we ended up with.

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