Let me give you some background (this will be long, sorry!)
Bought our house in 2004 through local housing association shared equity scheme (50/50). No rent is payable on the HA share, we simply split equity 50/50 on sale.
Now, we want to move (3 kids now, so want a bigger house), and the HA is fine with us moving their "share" to a new property, as long as they don't give us more money, and their share remains 30-50%, in 5% increments.
Spoke to a broker, who applied for a MIP with Nationwide and they came back offering us £30k less than we need.
So, we called the Woolwich (who we have our existing mortgage with) and the woman on the phone sounded fed up and quite short with me, told me Woolwich don't count child benefit as income (even though the guide on their website says they count it 100%) and offered £6k more than Nationwide would offer!
Now, I've used Woolwich's "affordability calculator" (and yes, I know it's meant for "intermediaries"....) and according to that, what we're asking for is "affordable". I've also used many other online affordability calculators, and they range from £0 to over £100k.
So, you fine people on MSE :) Please help!
We're looking at LTV of 85% for £81,770 (our share £96,200 = 65%, HA = 35%).
Income: DH £22,100 (average yearly overtime, not guaranteed of about £1k)
Me: Child tax credits £6,400 Child benefit £2,200
Total income: £30,700
Net monthly: £2,177
(3 children aged 6, 8 and 12. And before anyone jumps on me for wanting to include this income - should these payments stop I have a guaranteed job offer which would cover this with the family business, I'm just waiting a couple of years until my mother in law retires so she can pick the kids up from school, to make life easier).
Debts:
£3600 on 1 credit card, but only £36 a month payment (1% of balance, 0% APR until middle of next year)
£800 on another credit card £27 a month payment (should be paid off within afew months, so before completion)
£196 per month for our car - 35 payments left (Ford Options, so total outstanding is much higher than 196x35, but at the end of 3 years we have the GFMV of the car to clear the balance - I think this is something Nationwide and Woolwich picked up on our credit report).
Debt total: £259.00 per month + (£76.00 council tax)
Debt to income ratio (inc council tax): 35.55%
As far as our credit history goes, it's green across the board. We've had credit cards, loans, mobiles, mail-order etc etc, all of which other than the above mentioned is now cleared and all paid on time, with never any missed payments.
Currently, we have a very high available credit, but only use 20% or so, so could cancel cards if needed (is this advisable?). We also could in theory clear the credit card balance in full before completion, but then we wouldnt have the cash for the EA fees and stamp duty...
The only "negative" on our credit record is the search from Nationwide, probably the search from Woolwich (it doesn't show at the moment),a renewed mobile contract last November, and the car finance in January. Weve also just done a balance transfer to the 0% card (as the old 0% was about to expire, so this could be a negative, or showing up twice?)
Sorry, I know this is really long, I just wanted to get the info out there.
We've got an appointment to see the mortgage advisor at the bank next week who sorted our mortgage for us last time (after a broker mucked up our application last time too, so we're weary of brokers now...)
Any advice on what to do next for us? Is the advisor at the bank likely to come up with anything different to the woman on the phone from Woolwich? Are weroyally stuffed and have no options other than to stay where we are? Well lose the house we want if we have to wait 6+ months :(
Help!
Bought our house in 2004 through local housing association shared equity scheme (50/50). No rent is payable on the HA share, we simply split equity 50/50 on sale.
Now, we want to move (3 kids now, so want a bigger house), and the HA is fine with us moving their "share" to a new property, as long as they don't give us more money, and their share remains 30-50%, in 5% increments.
Spoke to a broker, who applied for a MIP with Nationwide and they came back offering us £30k less than we need.
So, we called the Woolwich (who we have our existing mortgage with) and the woman on the phone sounded fed up and quite short with me, told me Woolwich don't count child benefit as income (even though the guide on their website says they count it 100%) and offered £6k more than Nationwide would offer!
Now, I've used Woolwich's "affordability calculator" (and yes, I know it's meant for "intermediaries"....) and according to that, what we're asking for is "affordable". I've also used many other online affordability calculators, and they range from £0 to over £100k.
So, you fine people on MSE :) Please help!
We're looking at LTV of 85% for £81,770 (our share £96,200 = 65%, HA = 35%).
Income: DH £22,100 (average yearly overtime, not guaranteed of about £1k)
Me: Child tax credits £6,400 Child benefit £2,200
Total income: £30,700
Net monthly: £2,177
(3 children aged 6, 8 and 12. And before anyone jumps on me for wanting to include this income - should these payments stop I have a guaranteed job offer which would cover this with the family business, I'm just waiting a couple of years until my mother in law retires so she can pick the kids up from school, to make life easier).
Debts:
£3600 on 1 credit card, but only £36 a month payment (1% of balance, 0% APR until middle of next year)
£800 on another credit card £27 a month payment (should be paid off within afew months, so before completion)
£196 per month for our car - 35 payments left (Ford Options, so total outstanding is much higher than 196x35, but at the end of 3 years we have the GFMV of the car to clear the balance - I think this is something Nationwide and Woolwich picked up on our credit report).
Debt total: £259.00 per month + (£76.00 council tax)
Debt to income ratio (inc council tax): 35.55%
As far as our credit history goes, it's green across the board. We've had credit cards, loans, mobiles, mail-order etc etc, all of which other than the above mentioned is now cleared and all paid on time, with never any missed payments.
Currently, we have a very high available credit, but only use 20% or so, so could cancel cards if needed (is this advisable?). We also could in theory clear the credit card balance in full before completion, but then we wouldnt have the cash for the EA fees and stamp duty...
The only "negative" on our credit record is the search from Nationwide, probably the search from Woolwich (it doesn't show at the moment),a renewed mobile contract last November, and the car finance in January. Weve also just done a balance transfer to the 0% card (as the old 0% was about to expire, so this could be a negative, or showing up twice?)
Sorry, I know this is really long, I just wanted to get the info out there.
We've got an appointment to see the mortgage advisor at the bank next week who sorted our mortgage for us last time (after a broker mucked up our application last time too, so we're weary of brokers now...)
Any advice on what to do next for us? Is the advisor at the bank likely to come up with anything different to the woman on the phone from Woolwich? Are weroyally stuffed and have no options other than to stay where we are? Well lose the house we want if we have to wait 6+ months :(
Help!