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!

Nationwide are good because they lend until your 70. Don't know what their stance is on student loans though.

@Itsjustaride8w737

It's stressful op.

I'd look for somewhere cheaper if I were you.

Dh earns 55k (More if doing overtime) and we are borrowing 145k. We have one dependant. It leaves us (after all bills/mortgage/food/cat etc) with around 1400 a month.

I don't see how you will afford it?

We have far less than that left now. We mange.

@Blibbler

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?

It’s totally impossible to be in the deeds without being on the mortgage. If the bank tried to repossess the house but only your husband owed the money, they’d not be able to if you were on the deeds and not the mortgage as you wouldn’t be liable for the debt. You obviously would have some protection anyway as his wife, but I would very strongly advise you speak to a separate solicitor to the one doing the conveyancing to make sure you are protected as much as possible. They may advise a deed of trust to make clear that you have an interest in the property. I hope things work out for you. If you don’t succeed with this lender, maybe try a few independent mortgage advisors to see what they can come up with.

I've realised it won't happen.

But it stings to be shelling out more in rent than we would on a mortgage.

I highly recommend a Which mortgage advisor. You don’t pay until you secure one.

Make sure you include all benefits in your income calculation.

It could still happen!

[quote Youngatheart00]@GappyValley I didn’t think soft searches affected credit score?[/quote]
They can in combination with other factors
A flurry in quick succession definitely has an impact...

Is the CB in your name because that should be used as part of your income?

It could happen Fuckadoodle - and I really hope it does for you. I totally get why you want the security of owning rather than renting, in your circumstances. It sounds to me that compromising on a smaller house would be better for you than the compromise of continuing renting. Don’t give up, but spend a few more weeks researching all your different options. And do talk to some other brokers - I’ve found London & Country really good in the past.

You are not likely to be able to go on the deeds if you aren’t on the mortgage. I have been working in conveyancing for 25 years and this has only be allowed once. You should apply in joint names.

@combatbarbie

Is the CB in your name because that should be used as part of your income?

It is and it has been.

Sorry not as my income for CB. But obviously it goes into the bank account so habito have seen it.

London and county been mentioned twice. Will look into them, thank you.

@Barton10

You are not likely to be able to go on the deeds if you aren’t on the mortgage. I have been working in conveyancing for 25 years and this has only be allowed once. You should apply in joint names.

As OP has explained they wouldn’t be able to borrow enough in joint names as it reduces the multiplier they use to decide what they’ll lend. Soft searches are recorded on your credit file, but lenders can’t see it, slot doesn’t affect their lending decisions. I would definitely agree with the advise to keep trying. Speak to whole of market mortgage brokers and use everything you can in terms of income. Ask them if it would be best to not do overtime for 3 months, so that the student loan payment stays low for that period. Or can they find someone who’ll take overtime into account. There’s were loads that would when I was a broker years ago. Some would take half, some 25%, more would than wouldn’t take any. Maybe get DH to claim the child benefit in his name if it’s in your name now if they can find a lender that will use it for affordability.

I'm just more annoyed at myself that I've got to this point in life via stupid decisions if I'm honest. Dh no better. A useless degree the first time round (so he could drink for three years basically) saw
Him having to do something else and only start a career when he was 27.

Pair of idiots really.

Long shot but can you go for a smaller property?

My husband is 6 years younger than me which is why they were taking about 30 year mortgages. But 25 was the one "settled" on

@combatbarbie

Long shot but can you go for a smaller property?

We're looking. But it would have to be somewhere with a downstairs room to use as a bedroom. 18 year old Ds will be with us for a while yet and 2 little dds

@Fuckadoodledoooo

I'm just more annoyed at myself that I've got to this point in life via stupid decisions if I'm honest. Dh no better. A useless degree the first time round (so he could drink for three years basically) saw Him having to do something else and only start a career when he was 27.

Pair of idiots really.

Oh op don't beat yourself up. Everyone was young once & made some not great choices. All you can do now is move on from it and you've learned from it. Keep positive it will happen, you might need to compromise on the house but I'm sure it will happen for you.

And also an elderly relative who goes batshit (he does it makes me ill) if he can't stay regularly

@Fuckadoodledoooo

And also an elderly relative who goes batshit (he does it makes me ill) if he can't stay regularly

Still doable with a 2 bed. 18 year old in living room/loft. Dds in bedroom 2. When elderly rellie arrives either you vacate your room for a sofa bed or littlies in with you for a few days.

We'll keep looking for somewhere smaller.

But all the two beds are just living room then kitchen through from the living room with two small bedrooms upstairs.

Sleeping in lounge do able but he stairs tend to be in the lounges so if anyone wanted the kitchen or to come in at night they would be right in that room.

Keeep searching though eh.

Since you started this journey many lenders have began accepting overtime and bonuses again.

Habito have used a software company designed to reduce the research these online, high traffic enquiry companies use. The research isn't thorough, same as l&c. Just cos they're free doesn't mean they're any good. If they were you wouldn't be asking an anonymous forum for comfort, the broker would have done that for you.

I dare say a more personal touch would get you what you need.

TSB won't allow you on the deeds and not the mortgage. They are a holes with student loans too.

The reason for the lower loan amount on a joint application is, whilst you're not earning you're a dependent, which some companies then use to reduce the loan, equally a married couple with only one on the deeds/mortgage is not acceptable. Therefore, some lenders you could look to use would not have been part of the habito research.

What other element of universal credit are you receiving?

NatWest will average your husbands last 6 months of overtime and they usually take 100% of this, plus your chb, and some other elements of universal credit. At 85% ltv they should offer you 4.49 x all income. And would be my first port of call based on what you've said. My second would be Santander, you need to go on the application, and they will average the last 3 months overtime take either 65% or 100%, take chb and universal credit. Then they lend 4.45x income.

Student loan is usually 9% of income over 21k pa, therefore the high overtime should counteract the impact of the student loan.

I'd strongly advise you to talk to an independent broker for a second opinion. Lenders are changing their criteria more positively weekly since the start of the pandemic.

I honestly think you'll be fine with the right advice and guidance.

Good luck

I think you are taking on a huge risk as good deposit but very high multiples. Most mortgage lenders will offer up to 4 times for a single applicant and 4 - 5 for a couple if both work. Have you included child benefit?

@WetWeekends Hsbc do this, but only direct.

@Bluntness100

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.

It’s not unusual at all. I’m in the same position. Partners who aren’t working are classed as dependents. They’re not if the main earner is applying for a sole mortgage.