Buying and selling - mortgage app

[Bloops]

Hi, just looking for some in input :)

We have a buyer for our house and had an offer accepted on a new one.
Have found a solicitor, got a decision in principle and have a bank appointment next week to do the mortgage application.

We can either do a 10% or 15% deposit on a house just under 280k. Selling ours for just under 225k.
If we go for the 10% option, we will have a substantial amount to do the new house up. If we go with the 15%, we will only be able to do the bathroom and maybe a bit of the kitchen and have to save up for the rest.

To be honest, I just want the application to go smoothly and not be declined. Do you reckon we should just go with the 15% option? Would the bank be more likely to approve a bigger deposit?

I have only been in my new job nearly 2 months. I did enquire with our current mortgage provider and they said this shouldn't be a problem as long as its permanent so that's why I'm proceeding. It's permanent with a 6 month probationary period.

Anyone purchased recently and got any advice at all? Did it go to plan / who did you use etc.
If you also don't mind me asking, did you have any other outgoings which you were worried could cause an issue? I have a 24 month finance agreement for a total of 4k. I'm only 6 months in and never missed a payment on anything but at this stage, I'm just terrified something will go wrong!

If its declined, any recommendations? Maybe a broker?

Any advice at all is great before I worry myself to death

Our broker says 10% are virtually gone now and we’re trying for a 20% (I’m still worrying about plenty going wrong...)

@LividLaughLovely oh really? Are you a first time buyer or not? This is very stressful. I hate how I have to out my own house on the market, find a buyer, find a house i like, get an offer accepted and THEN dp the mortgage application to potentially be declined. Seems so awkward :(

If you have a decision in principle then surely you know how much you can borrow and what the terms are? Personally if you are confident you can make the repayments I'd go with 10% and do the changes - you'll be adding value and increasing your equity. And try to overpay on your mortgage every year.

You’re right, @Bloops, the system sucks.

No, I was a ftb four years ago, on a 5% deposit somehow even that recently.

@Pipandmum the banks are tightening significantly now and your decision in principle is just that - no guarantee the product will be available or that they’ll offer you those terms. My broker is a bit of a wizard thank goodness but things are changing rapidly at the moment. There’s been a HUGE reduction in 10% deposit products since Covid he says.

I'm going through the mortgage process right now, and my broker said 25% is the magic number.

I also depends on both your credit scores, incomes and outgoings, as to how much you can borrow, and that will determine what deposit you'll need.

But you say you have an agreed in principle already with the lender. Surely then it's already decided what you can borrow and what deposit you'll need.

My advisor told me 20% LTV or more is very favourable right now.. only a couple lenders are doing 10% which must be really screwing over FTB. 😫 from that, I’d personally go as high as you can but if you have your MIP then in theory, you’ve got 10% agreed!

Our estate agent has told us that many chains are falling through with 20% only being accepted at the moment :( I'd apply as strongly as possible deposit wise, just to secure it.