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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

First mortgage application - reassurance/advice needed!!

72 replies

PartyRat · 03/03/2016 20:12

Hi all! Long time lurker, first time poster. About to submit our first mortgage application and need some wisdom!

Boyfriend and I rent a lovely flat that's perfect for us. Our landlord knew we were looking to buy (eventually) so offered us the flat and accepted a bargain price. So off we went to the mortgage broker, and here's where my AIBU starts.

Because this happened a lot sooner than we expected, my finances aren't particularly great - leftover student overdraft of £2.5k which I'm always in, monthly wage isn't enough to bring me out of it. Credit card with about £450 outstanding, but the broker said that shouldn't pose too much of a problem. Sent the broker my 3 months bank statements and was told 'there could be a problem' as I was constantly in my overdraft and there was one charge for unarranged overdraft use (annoying as I had money in another account which could have covered it )

I am hugely worried about our application in light of this. It's a joint mortgage application, and I'm really worried that we will be declined because of me Boyfriends accounts are good, no overdraft, no credit card, no student loan etc. The affordability calculator said we could get around £209k but we're only asking for £166k which I hope helps it?

AIBU in being so worried, or is it likely to be declined? It feels like we have even more pressure than a normal mortgage application as if it's declined our landlord will need to sell to someone else leaving us without a flat!! Please let me know what you think, might calm me down a wee bit....or maybe not!

OP posts:

Queenbean · 04/03/2016 09:43

I think that there's nothing you can do about it at this point, just cross your fingers and wait. It is hugely nerve wracking though I know! Best of luck.

You should though get your finances in order from now - clean your bank accounts and make sure that you're not in your overdraft. So that if you are declined this time you can apply again in a few months and it would hopefully be more positive

Bearbehind · 04/03/2016 10:17

There are things the OP can do now queen, the application hasn't been submitted.

The finger crossing comes when you're happy you've done the best you can and the decision is with the lender.

I'd definitely want confirmation that the broker has spoken to his BDM at Natwest, disclosed the full facts of the case and is confident it is proceedable.

Even the boyfriend could be an issue as the OP said he has 'no' credit cards or overdraft. If that is absolutely none as opposed to having the unused facility, there will be no credit history, that makes life difficult too.

Bearbehind · 04/03/2016 10:29

Just had another thought- you mentioned in your first post that you don't have the funds to clear the overdraft- where's the deposit/ fees/ stamp duty coming from?

If it's a gift, or worse, a loan, then this will further complicate the situation as you can't demonstrate you've personally contributed anything towards the purchase, is haven't saved anything towards it.

Original poster

PartyRat · 04/03/2016 10:54

Bear, although he doesn't have a credit card or overdraft, he does have direct debit for Internet bills, gas and electricity etc so there is some sort of record surely?

He's putting forward the deposit, part savings part family gift

OP posts:

Bearbehind · 04/03/2016 11:08

Not necesarily party. Not all utility companies report to credit reference agencies so there might be very little data on him.

Have you both requested your credit records from the 3 main agencies, Experian, Equifax and Call Credit?

Original poster

PartyRat · 04/03/2016 11:18

I've checked mine - my Experian was good but dropped a few points to fair because I wasn't on the electoral roll at our new address (although this has been fixed now so hopefully will pick up the points again). Callcredit was fair (not great I know) and equitax I'm not sure of. I'm don't know bf's off the top of my head.

OP posts:

Bearbehind · 04/03/2016 11:20

Don't worry about the 'score' - it's a load of crap- it's the data that's important.

Do you have any missed/ late payments? Does your continued overdraft usage show up on the reports?

Original poster

PartyRat · 04/03/2016 11:30

Oh, I had just really taken note of the 'score' but I'll have a look over them and see what's actually showing up. Feel like I should have come to mumsnet for advice first before going to the brokers!!

OP posts:

Bearbehind · 04/03/2016 11:48

That's highlights exactly the point I'm trying to make party

If your broker is any good, none of this should be new to you- he should have already asked all this.

If no application has been made I really would consider finding another broker before you submit anything.

DeoGratias · 04/03/2016 12:10

You and he will also need to agree in what shares you will buy under Scottish law, 50% each or whatever.

My daughter was offered a loan and was in overdraft fairly regularly but I expect it depends on the lender.

JaceLancs · 04/03/2016 12:14

Natwest gave me a mortgage that other lenders wouldn't - even though I spend a lot of time in my overdraft and have other debts on credit card and personal loan
Main difference I think was I bank with them and have done so for years, they also factored in other sources of income than salary that other lenders would not as they had history that it was stable
I'm not in the finance industry at all, so will share names - the next highest offers I had were from Santander and Halifax - if they had offered me the amount I needed I would have gone with Halifax purely on their great customer service
Agree with other posters - maybe try a different broker

WhimsicalWinnifred · 07/03/2016 19:47

So did you apply op?

Original poster

PartyRat · 07/03/2016 21:08

We're going to - just need to send a copy of my most recent payslip (hadn't been issued when we met the guy) and see what happens. It would be for the AIP which is only a soft credit check, so thought we would apply for this one first then see what the response is and plan our next moves (if we need to)

Fingers crossed!

OP posts:

WhimsicalWinnifred · 07/03/2016 21:49

Don't get your hopes up too much on an aip . We got one from Halifax and after we had a buyer got an aip for 140k. When we applied fully they weren't happy with my credit history (turns out I have a default I didn't know about) and changed that to 8k. Natwest changed their aip to a no. Only dp is on the mortgage to get around it all.

I don't want to fill you with dread be a use their absolutely will be a better way round it for you. You will get your house.

Also be careful with help to buy schemes. You won't be paying back what you loaned unless property prices fall. You'll be paying back the same percentage of house value. Houses on average gain 6% a year as an average over time so they will be making a good amount of money from you

lionsleepstonight · 07/03/2016 22:30

Can you buy the flat in your boyfriend's name only, if his salary can cover it. You clean up your bank account etc and get added on later? At 95% lenders have strict rules to follow. This way you can proceed now and not lose the sale.

lionsleepstonight · 07/03/2016 22:33

If you get declined for a mortgage you have to declare it next time and lenders get very nervous unless you have a very large deposit. You need a broker who knows what they are doing so you only submit one application. We used London and Country and they were fab ( I don't work for them!)

Angely123 · 27/05/2016 08:05

I'm in more or the less and identical position!! I'm really keen to see how you've got on because I'm absolutely terrified . We've passed the AIP stage, we're just submitting our statements now...

MrsMarsch · 27/05/2016 08:26

As a mortgage adviser who used to work for NatWest, if one applicant was a little 'iffy' and the other was good, it would usually balance out. What will swing your case is credit score, are you good or excellent on Experian? More than happy to talk details if you want to pm me xx

jay55 · 27/05/2016 09:13

If you can't afford to pay off your overdraft can you afford to buy a flat? Will the mortgage plus maintenance be less than rent?

MrsMarsch · 05/06/2016 13:50

Have you heard anymore OP? X

leelu66 · 05/06/2016 13:58

Natwest were very cautious and said their underwriters would be unlikely to give us a mortgage due to a year old default on a bill. Halifax were fine from the beginning and mortgage went through.

user1464519881 · 05/06/2016 14:50

It will probably be fine. My daughter got one (not with NatWest) with similar issues - over draft although her salary is quite high and she had a good deposit and career (they like lawyers). Also you could get a parent to guarantee it or your boyfriend could buy alone if his income alone would justify the mortgage.

By the way don't buy jointly with him without getting your solicitor to draw up a contract between you under Scottish law saying your respective shares and what happens if one of you wants to sell and the other doesn't or if one of you dies etc. I imagine you want to own 50% each and probably as what we call in English law tenants in common (not joint tenants) - not sure about Scottish law. It would also be a good time to make a will too . As you are not married the legal position if you split or die is very different from if you were married and it's best to get all this kind of thing written up by solicitors into a binding contract between you.

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