Hi there,
Apologies in advance for lengthy post! Myself and other half trying to figure out how long it will realistically be before we might have a chance of being able to apply for a mortgage product. Whether this is 1 year or 5 is not a huge issue, it would just be good to know what sort of lead time we are looking at so we can make decisions regarding our current rental property and areas we are thinking of for the nearish future etc.
Currently we both earn around 27k and both should hopefully rising to around 30k in the summer as various increments progress etc. We do both have existing 'long-term low rate' credit card balances from a recent very expensive episode in life (currently around 5k for myself which incurs a min payment liability of c 100p/m and 15k for my gf which incurs c 300p/m although she expects this to be around 7/8k by the summer). While there are balances they have always been managed without problems so our credit records are completely clean from a management perspective, never any missed payments/defaults etc.
When I plug in very provisional figures into the online calculators on lenders websites for a purchase of around 150k with a 5% deposit (which I currently have in cash) and our current debt levels (although all these figures should be improved from summer onwards as i say) it doesn't appear to make that big a difference to the potential lending figure they quote e.g. max lending reduces from around 230 to 200 on natwest site and this was echoed on quite a few others, leeds, nationwide etc. When I got a rough quote in branch however at natwest from counter staff they plugged in the same numbers and got a figure of 80k as max borrowing, pretty massive difference! They said this was due to existing balances. Which is more accurate?
What I wanted to know was whether existing balances of any sort are problem i.e. will we have to pay off everything before we can apply for a mortgage product or as the online calculators implied, will it just limit the max amount we can borrow by around 10%ish?
Any thoughts most appreciated!
: )
Apologies in advance for lengthy post! Myself and other half trying to figure out how long it will realistically be before we might have a chance of being able to apply for a mortgage product. Whether this is 1 year or 5 is not a huge issue, it would just be good to know what sort of lead time we are looking at so we can make decisions regarding our current rental property and areas we are thinking of for the nearish future etc.
Currently we both earn around 27k and both should hopefully rising to around 30k in the summer as various increments progress etc. We do both have existing 'long-term low rate' credit card balances from a recent very expensive episode in life (currently around 5k for myself which incurs a min payment liability of c 100p/m and 15k for my gf which incurs c 300p/m although she expects this to be around 7/8k by the summer). While there are balances they have always been managed without problems so our credit records are completely clean from a management perspective, never any missed payments/defaults etc.
When I plug in very provisional figures into the online calculators on lenders websites for a purchase of around 150k with a 5% deposit (which I currently have in cash) and our current debt levels (although all these figures should be improved from summer onwards as i say) it doesn't appear to make that big a difference to the potential lending figure they quote e.g. max lending reduces from around 230 to 200 on natwest site and this was echoed on quite a few others, leeds, nationwide etc. When I got a rough quote in branch however at natwest from counter staff they plugged in the same numbers and got a figure of 80k as max borrowing, pretty massive difference! They said this was due to existing balances. Which is more accurate?
What I wanted to know was whether existing balances of any sort are problem i.e. will we have to pay off everything before we can apply for a mortgage product or as the online calculators implied, will it just limit the max amount we can borrow by around 10%ish?
Any thoughts most appreciated!
: )