Hi, my wife and I have been together since 2008 and during that time we have enjoyed spending and borrowing. We have always paid off what we owe and we have never had to get help from outside to pay our debts. We both bring home £2k a month after pension, tax, NI and childcare voucher deductions. On top of that I have a phone bill thats £15, car finance £226, car service payment £12 and a credit card that I pay around £150 on average. These are all monthly. The wife has a phone bill thats £38, car finance £200, nursery fee £350, personal loan of £300, nhs prescription card £11. These are all monthly too. We pay around £90 a month for water, gas and electric and our rent (private tenants) is £1025 for a bed bed terraced.
Recently we applied a Barclays family springboard mortgage where the father in-law was going to stump up 10% of the deposit to help us. Barclays went through an affordability test and took the above plus our pension details down (I’m £420 a month (direct out of wages and not the £2000)) and the wife is £410 also direct out of wages and not the £2000.
From that they told us we would be eligible for a mortgage of £175,000! I couldn’t believe it! He told me that basically our pensions are one mortgage in itself (even though it doesn’t come out of our take home money) and our childcare fees were also a mortgage (even though £500 of it doesn’t come out of our take home money).
I am doing what I can to reduce my outgoings by blasting one debt at a time whilst maintaining minimum payments on the others but I would not consider myself as a risk. I have good credit rating and so does the wife, but how are we suited for no mortgage!
I feel so demoralised! Surely its defying the point of working! You seem to get more if you don’t work and claim benefits! You get a council property, childcare is taken care off and get to enjoy the life of riley!
Is there any advice or anyone who has been/is in a similar position that can offer hope?