Mortgage advice? Or moreso chances?
Mortgage advice? Or moreso chances?
Author
Discussion

ShampooEfficient

Original Poster:

4,278 posts

241 months

Thursday 13th September 2018
quotequote all
MrsSE and I have found a potentially lovely house. We currently rent. Being in the North, the house is around £85k.
However. I am still paying off a lot of debt. A series of bad decisions in my early 20s, plus a short time being unemployed and homeless, plus a wedding, plus a previously uninsured dog (d'oh) needing two big operations... Means I'm currently in it for about £18k. Currently spread across credit cards at relatively low interest - 4.9%pa for the most part, over three years - cheaper than the loan I did have. Currently paying off at £550 per month total, interest is about £100 per month but coming down. Yes, I am aware that I am a frigging idiot, but I am taking steps to pay it off ASAP. I have also cut up the only card I know the PIN of, to avoid temptation. (Currently have about £5k available across the cards, so they're not maxed out, at least £1k left on each).
I am six months into my two year probation period (a responsible job, with background checks). I am on £22k pa.
MrsSE is five months into her ten month probation period, and is on £26k pa. She has about £400 on her credit card, and about £4k left on a loan.

Firstly, what's the chances of us getting a £75k mortgage? MrsSE has a £10k inheritance coming to her that is going to be used as the deposit.
Would it be better or worse for her to apply on her own, and add me on once Im debt free, bearing in mind we are married?

Also although I would be paying more interest overall, do the mortgage companies look better at a 3 year loan than a 3 year CC debt?

I know a lot depends on individual circumstances, and people can't give specifics, but I'm hoping someone will be able to give me some brief guidance for whether or not we are wasting our time going into our bank...!
I have never missed a payment, Clearscore currently shows me as 375/700, and all the payments are significantly more than the minimum.

Current plan is to pay off the one that's charging the most interest as quickly as possible, then the next. And keep my eyes open for the 0% deals coming round.

Thank you in advance!

TheAngryDog

13,240 posts

239 months

Thursday 13th September 2018
quotequote all
Sarnie should be able to give you a better indication, and I would expect that someone would lend to you, but at what rate etc?

I'm not sure it's great to have nearly a years worth of salary in unsecured debt but it is the 21st century after all.

A quick guesstimate on Nationwide based on the into you gave said on paper the could lend up to £144k, but obviously there are other factors to take into consideration.

ShampooEfficient

Original Poster:

4,278 posts

241 months

Thursday 13th September 2018
quotequote all
TheAngryDog said:
Sarnie should be able to give you a better indication, and I would expect that someone would lend to you, but at what rate etc?

I'm not sure it's great to have nearly a years worth of salary in unsecured debt but it is the 21st century after all.

A quick guesstimate on Nationwide based on the into you gave said on paper the could lend up to £144k, but obviously there are other factors to take into consideration.
Spot on, thank you!

Yup, its a silly amount to have, but its also a lot less than it was previously!

Integroo

11,631 posts

115 months

Thursday 13th September 2018
quotequote all
Large amounts of unsecured debt, both of you on probation at your jobs. Now is not the time to buy a house, I'd suggest.

Sarnie

8,372 posts

239 months

Thursday 13th September 2018
quotequote all
ShampooEfficient said:
MrsSE and I have found a potentially lovely house. We currently rent. Being in the North, the house is around £85k.
However. I am still paying off a lot of debt. A series of bad decisions in my early 20s, plus a short time being unemployed and homeless, plus a wedding, plus a previously uninsured dog (d'oh) needing two big operations... Means I'm currently in it for about £18k. Currently spread across credit cards at relatively low interest - 4.9%pa for the most part, over three years - cheaper than the loan I did have. Currently paying off at £550 per month total, interest is about £100 per month but coming down. Yes, I am aware that I am a frigging idiot, but I am taking steps to pay it off ASAP. I have also cut up the only card I know the PIN of, to avoid temptation. (Currently have about £5k available across the cards, so they're not maxed out, at least £1k left on each).
I am six months into my two year probation period (a responsible job, with background checks). I am on £22k pa.
MrsSE is five months into her ten month probation period, and is on £26k pa. She has about £400 on her credit card, and about £4k left on a loan.

Firstly, what's the chances of us getting a £75k mortgage? MrsSE has a £10k inheritance coming to her that is going to be used as the deposit.
Would it be better or worse for her to apply on her own, and add me on once Im debt free, bearing in mind we are married?

Also although I would be paying more interest overall, do the mortgage companies look better at a 3 year loan than a 3 year CC debt?

I know a lot depends on individual circumstances, and people can't give specifics, but I'm hoping someone will be able to give me some brief guidance for whether or not we are wasting our time going into our bank...!
I have never missed a payment, Clearscore currently shows me as 375/700, and all the payments are significantly more than the minimum.

Current plan is to pay off the one that's charging the most interest as quickly as possible, then the next. And keep my eyes open for the 0% deals coming round.

Thank you in advance!
Somebody will lend to you.......the debt to income ratio is high and the probationary periods will rule out a few, but I'm pretty sure that you'd be able to secure the required £75k with someone.......... smile

ShampooEfficient

Original Poster:

4,278 posts

241 months

Thursday 13th September 2018
quotequote all
Cheers guys! biggrin

One reason is if we can save £100/ month on living ie rent (plus slightly cheaper council tax, bills, as its a smaller house), then its more off the debt smile

Will be ringing round on my days off.

Integroo

11,631 posts

115 months

Thursday 13th September 2018
quotequote all
ShampooEfficient said:
Cheers guys! biggrin

One reason is if we can save £100/ month on living ie rent (plus slightly cheaper council tax, bills, as its a smaller house), then its more off the debt smile

Will be ringing round on my days off.
Then your boiler needs replaced/dishwasher breaks/etc....

ShampooEfficient

Original Poster:

4,278 posts

241 months

Thursday 13th September 2018
quotequote all
Integroo said:
Then your boiler needs replaced/dishwasher breaks/etc....
Good point, well made. Rest assured we have an emergency pot that we deliberately havent used to pay off any debt, for exactly this!

Welshbeef

49,633 posts

228 months

Thursday 13th September 2018
quotequote all
Sarnie said:
Somebody will lend to you.......the debt to income ratio is high and the probationary periods will rule out a few, but I'm pretty sure that you'd be able to secure the required £75k with someone.......... smile
Personally ive never heard of ten month and 2 year probationary periods before. Likewise not have I had to input probationary period into a job application - one would suggest more than 3 or 6 months in a job should equate to being clear of the hurdle.



Sarnie

8,372 posts

239 months

Thursday 13th September 2018
quotequote all
Welshbeef said:
Personally ive never heard of ten month and 2 year probationary periods before. Likewise not have I had to input probationary period into a job application - one would suggest more than 3 or 6 months in a job should equate to being clear of the hurdle.
Police officers I'm guessing.........or similar.......

So, unless you are a Police Officer (or similar)..................or a mortgage broker.........you probably won't have come across 2 year probationary periods wink

Welshbeef

49,633 posts

228 months

Thursday 13th September 2018
quotequote all
Sarnie said:
Police officers I'm guessing.........or similar.......

So, unless you are a Police Officer (or similar)..................or a mortgage broker.........you probably won't have come across 2 year probationary periods wink
Interesting I didn’t know that

So question do mortgage companies request if in probationary period and duration or simply length of time in the role?

Sarnie

8,372 posts

239 months

Thursday 13th September 2018
quotequote all
Welshbeef said:
Interesting I didn’t know that

So question do mortgage companies request if in probationary period and duration or simply length of time in the role?
My wife's a police offer so I'm aware of it existing for them.....

The answer to your question is......both.......most systems will ask for a start of employment date.......the answer will then usually trigger an additional question about if you are in a probationary period or not..........so if you've been in long term employment, when you enter your start date, you are unlikely to have ever seen the additional probationary period questions.........