Hi there,
I'm looking for some advice. Here's the situation:
We're a couple. Currently renting together. We'd like to buy a house as the mortgage would be about the same or just a bit more than the rent we now pay.
Applicant 1: Me. Age 26. Credit rating was non-existent until September 2007; which is when I moved to the UK (EU national). I've been working on increasing my credit score, by getting a small loan (not needed but was 0% interest) - that's paid off now. I also have a credit card that I use monthly and pay off monthly. All my banking activities are with NatWest. Noddle now gives me a credit score of 4/5.
Yearly income: £32k basic + £16-£32k commission. For the last tax year my total income was £54k. Commission is paid out quarterly. I have worked at my current company since March and passed my probation on September.
Outgoings: no loan. I pay pretty much all the bills - rent, council tax, gas & electricity, Virgin Media, etc.
Savings: currently not much (£3k). I have now started to save my commissions when I get them, so about £3k every 3 months.
Applicant 2: My boyfriend. Age 29. He's English and his credit rating should be fair but not brilliant as he has a loan that he's paying off (see below). Always been on time with payments though. Also has 2 credit cards (1 NatWest, 1 Debenhams) which he uses almost every month and pays off straight away, to increase credit rating.
Yearly income: £25k. No commission. Has worked at his current company since June and has recently passed his probation. He's a compliance manager for a financial firm (not that I can imagine they take something like that into account...). All his banking is done with NatWest, but we don't have a joint account (because he says that would influence my credit rating too much with his loan).
Outgoings: Loan with NatWest he took out to study Bar Vocational Course (barrister training). Paying off £600 every month, for another 4 years. Fixed interest rate. Also has a student loan, currently paying about £100 a month off that. Apart from that he pays for food, restaurants, going out, London travel card (zone 1-4), etc. We have no dependents.
Savings: about £2k.
My dad will gift us £50-75k for the deposit. This is currently invested in a plot of building land (in the country where I'm from). My parents bought this land about 10 years ago with money from saving accounts from my brother and me. We'll both get half of what it's sold for. Current value 150-180k. It will be sold quickly (lots of demand where he lives), but he only wants to sell it once we're pretty much ready to go ahead as it's still increasing in value by about 10% a year.
The plan: Saving about £15-£20k between us. We want to put at least £50-£60k into a deposit. Everything that we have above that (including what the gift from my dad) will either be used to top up the deposit and for the fees and stamp duty.
The house we would buy would be in the region of £300-325k (we're in the South-East). I don't want to move in 5 years when we have kids so it needs to have at least 3 bedrooms, preferably 4, hence the budget. So with £50-60k deposit (hopefully a bit more than that), mortgage would be £240-£275k.
What would be our chances to get a mortgage, say in about a year? So my boyfriend would then still be paying his loan off at £600 a month for another 3 years. He thinks we won't be able to get a mortgage until he's paid off his loan, but I'm hoping it's earlier than that.
We are aware that our outgoings will increase when we buy, with insurance and savings for upkeep. Also travel would cost more as we would be commuting to London every day (I don't want to buy where we live now and can't afford a house in "nicer" areas of the capital).
Thank you!
(and: sorry for the huge post! :eek: )
I'm looking for some advice. Here's the situation:
We're a couple. Currently renting together. We'd like to buy a house as the mortgage would be about the same or just a bit more than the rent we now pay.
Applicant 1: Me. Age 26. Credit rating was non-existent until September 2007; which is when I moved to the UK (EU national). I've been working on increasing my credit score, by getting a small loan (not needed but was 0% interest) - that's paid off now. I also have a credit card that I use monthly and pay off monthly. All my banking activities are with NatWest. Noddle now gives me a credit score of 4/5.
Yearly income: £32k basic + £16-£32k commission. For the last tax year my total income was £54k. Commission is paid out quarterly. I have worked at my current company since March and passed my probation on September.
Outgoings: no loan. I pay pretty much all the bills - rent, council tax, gas & electricity, Virgin Media, etc.
Savings: currently not much (£3k). I have now started to save my commissions when I get them, so about £3k every 3 months.
Applicant 2: My boyfriend. Age 29. He's English and his credit rating should be fair but not brilliant as he has a loan that he's paying off (see below). Always been on time with payments though. Also has 2 credit cards (1 NatWest, 1 Debenhams) which he uses almost every month and pays off straight away, to increase credit rating.
Yearly income: £25k. No commission. Has worked at his current company since June and has recently passed his probation. He's a compliance manager for a financial firm (not that I can imagine they take something like that into account...). All his banking is done with NatWest, but we don't have a joint account (because he says that would influence my credit rating too much with his loan).
Outgoings: Loan with NatWest he took out to study Bar Vocational Course (barrister training). Paying off £600 every month, for another 4 years. Fixed interest rate. Also has a student loan, currently paying about £100 a month off that. Apart from that he pays for food, restaurants, going out, London travel card (zone 1-4), etc. We have no dependents.
Savings: about £2k.
My dad will gift us £50-75k for the deposit. This is currently invested in a plot of building land (in the country where I'm from). My parents bought this land about 10 years ago with money from saving accounts from my brother and me. We'll both get half of what it's sold for. Current value 150-180k. It will be sold quickly (lots of demand where he lives), but he only wants to sell it once we're pretty much ready to go ahead as it's still increasing in value by about 10% a year.
The plan: Saving about £15-£20k between us. We want to put at least £50-£60k into a deposit. Everything that we have above that (including what the gift from my dad) will either be used to top up the deposit and for the fees and stamp duty.
The house we would buy would be in the region of £300-325k (we're in the South-East). I don't want to move in 5 years when we have kids so it needs to have at least 3 bedrooms, preferably 4, hence the budget. So with £50-60k deposit (hopefully a bit more than that), mortgage would be £240-£275k.
What would be our chances to get a mortgage, say in about a year? So my boyfriend would then still be paying his loan off at £600 a month for another 3 years. He thinks we won't be able to get a mortgage until he's paid off his loan, but I'm hoping it's earlier than that.
We are aware that our outgoings will increase when we buy, with insurance and savings for upkeep. Also travel would cost more as we would be commuting to London every day (I don't want to buy where we live now and can't afford a house in "nicer" areas of the capital).
Thank you!
(and: sorry for the huge post! :eek: )