Very stressed about mortgage application. Can someone talk me down.

[Fuckadoodledoooo]

Applying in Dh name only as I don't work at mo as baby is 6 months (and when I did it was min wage and zero hour contracts, all eaten up by childcare anyway), so it was easier to take me out of the equation.

We want to buy a house for £172,500. Dh parents have basically given him his inheritance early as a deposit of £26,000.

Dh earns 31k. We have no debts at all, our credit card was paid off in January with some savings.

Only debt is his student loan which is 27k.

Our bills come to £560 per month, 3 children (one is now 18).

Only other income is £500 a month universal credit, most of which is housing element as we are renting so we didn't even take that into account as we wouldn't be getting it if we bought - although obviously they (habito) have seen it on bank statement so asked.

Going through Habito, we were turned down by everyone bar TSB because of his student debt.

We are now just waiting in Limbo to see if they will actually give us the mortgage for 147k. I'm terrified it won't happen. We've been in shitty rented houses for so long. We moved 120 miles last year to a cheaper part of the country so we could maybe buy.

Dh has a really secure job that he's been in for 8 years - it's quite a high up position but the pay is a joke as it's for a local authority. He's been working remotely for two years, so he doesn't need to
Change job even though we are 120 miles away. He only has to go in twice a month for meetings.

I'm so, so sick of renting. We've been given notice three times over the years as landlords have wanted to sell, and have lived in some awful places. Current rental we are constantly scrubbing black mould from the walls.

The mortgage he was offered would be £300 cheaper than our rent.

I know that no one has a crystal ball. I'm just clutching at straws trying to get some reassurance!

Good luck , it must be so unsettling to be in your rental position. Fingers crossed you get the mortgage !

I think you should get your name on the mortgage.

@DarlingCoffee

I think you should get your name on the mortgage.

We applied in both names for a mortgage in principle, it took the borrowing amount too low to buy anywhere.

My name will go on deeds though.

Ah I hope it goes well for you - good luck OP. I have to ask, however, if you're loosing £500 income, and the mortgage will only be £300 less, are you sure you can afford it?

You might find it tricky to get a mortgage provider who will let you go on the deeds but not the mortgage. I used to have a mortgage like that but I believe they are a lot rarer now. Have you spoken to a broker?

Good luck op, I think you already know you’re at the very upper limit of the borrowing.

Please note though that although you can technically be on th deeds and not on the mortgage, most mortgage providers will not permit this.

I don’t understand about you being on the mortgage reducing the amount, you just say not financially active. It should make no difference at all. He’s still applying as a married man with the same bills to pay.

@Pootles34

Ah I hope it goes well for you - good luck OP. I have to ask, however, if you're loosing £500 income, and the mortgage will only be £300 less, are you sure you can afford it?

Yes we can. We didn't realise we were eligible to claim UC until a few months ago when a midwife mentioned it. So we were getting by before that. We don't go out or spend much at all aside from basics so we managed.

@Bluntness100

Good luck op, I think you already know you’re at the very upper limit of the borrowing.

Please note though that although you can technically be on th deeds and not on the mortgage, most mortgage providers will not permit this.

I don’t understand about you being on the mortgage reducing the amount, you just say not financially active. It should make no difference at all. He’s still applying as a married man with the same bills to pay.

When we spoke to a mortgage advisor last year it took it down by 10k applying as a couple.

Good luck OP, hope you get good news soon. My name is on our mortgage even though they didn't take my income into account - we just put me on the application but with £0 income.

Dh also works around 12 hours a week over time, they won't take that into account, but it helps with day to day living.

I was married years ago, I wasn't on the mortgage then but was on the deeds in one property.

Thank god I wasn't on the second as ex remortgaged to the hilt to cover gambling debts. It was a relief to be able to leave and walk away from that mess.

I don't understand how it can reduce it either. I would revisit that.

It's never going to be "easier to take you out of the equation" except for him if you were to split.

That's nearly a 5x mortgage, 4 dependants, and a student loan. I think you will struggle to get approved. Sorry.

@DavidsSchitt

I don't understand how it can reduce it either. I would revisit that.

It's never going to be "easier to take you out of the equation" except for him if you were to split.

Is it because she's classed as a dependant if on it?

But as it's a talking down you asked for, maybe look for something you can actually afford without cutting it fine.

You've not offered on a property yet, or at least I hope you haven't without the funds in place, so be a little flexible and something will come up

I'm a single parent and managed to borrow an additional £10,000 by including child benefit. I used a mortgage advisor

I'm not sure it's the student loan that's the reason - when I was applying for a mortgage both advisors I used told me the only way in which student loans are taken into acocunt by mortage providers is the amount you have to pay back each month. Which at £31k a year won't be very much.

I'd have thought the reason is more likely to be that you're applying for a mortage 4.7 times your husband's salary - most mortage lenders will only lend upto 4.5x. Can you look for a cheaper house initally? Or is there anyway you can add a bit more to the deposit so you're borrowing less?

"Is it because she's classed as a dependant if on it?"

I suppose so, yes. Maybe wait until you're back in work? With being gifted a decent deposit you already know it's achievable eventually.

We have never used my income to get a mortgage in 25 years but it’s always been a joint mortgage

It’s unusual to be honest, she’s a dependent on it or off it. So it should be zero impact. Mortgage companies now prefer you to be on it. And very few will permit you on the deeds without being named in the mortgage.

Because they want a second person to come after, and they don’t want to get into complexities of having to get you to agree to a repossession.

I’d also revisit this because it’s not the norm at all.

The problem with me back in work is that I'm a carer. Min wage, and unless I want to kill myself working nights again and looking after kids in the day, then I end up paying more for the children to be looked after than I earn. I even went back to college to get the btec to do it. I could have progressed further and done an access to uni course - but I didn't because it would have meant me having student debts too if we wanted a mortgage one day (and my earnings still wouldn't have been great).

Not anyone's fault that I fucked up my life massively early on I know, but I could kick myself, believe me!

It's just so hard being stuck in shitty rented houses.

We could find a cheaper house but it would be 2 bed. Not ideal with Ds (he's not going to uni he's doing a police apprenticeship so will be at home). But might be doable.

@Iamsodonewith2020

We have never used my income to get a mortgage in 25 years but it’s always been a joint mortgage

Yes same with me in our current mortgage, we were moving countries so it was done on my salary alone, as my husband had to change back to working for his Uk employer. On or off makes no difference to how much one person can borrow. The dependents remain the same.

Having someone on the deeds but not the mortgage is a ball ache. That person has an interest in the property and can refuse to allow it to be sold during a repossession , nearly all simply won’t permit on the deeds and not on the mortgage. Or we’d all be at it and protecting ourselves.

Speaking to Dh about it now. We were offered less when we looked into it with mr on it when we spoke to a mortgage advisor. I remember we were gutted - we didn't have such a big deposit either so there was nothing apart from studios we could afford.

He's asking the habito advisor now.

Maybe try a different mortgage broker? On Habito I was offered significantly less than L&C and Halifax. A huge difference in the mortgage in principle.

Habito MIP was 149k. TSB offered 147 so it wasnt so far out, I thought it would be.

HSBC and Yorkshire building society both refused on student loan amount.