Please help. Advice re. mortgage, new house, etc

Donna2017 · 27 May 2017 at 5:49PM

Dear Money saving experts,

I trust this is the best place to get varied and valuable current advice. Please help - I'm getting stressed trying to figure out what to do or how to do this. Family of 4 (husband, myself and 2 little boys). We outgrew current house, due to second little fella.. Situation below;

Husband:
£39k salary (alone on current mortgage £132k o/s, property value £167k)
Credit score Excellent
(1 finance PCP £7k ends 2019, car & 1 Credit card £4k bal)

Me:
£30k salary (not on current mortgage above)
Credit score Poor (3 defaults from 4years ago (Catalogues&phone), satisfied 2017, to come off 2019)
(1 Credit card £1k limit)

House:
New build house @ £215k (equity on sale to be used as deposit £32.25k)
Current house - to sell soon and rent until new build is complete early December 2017

Finances/questions:
We have £5k savings (can use this to settle credit cards to £0 if it helps anything in mortgage application?)
Can husband apply for £185k mortgage alone on his £39k salary for hous worth £215k?
Since my credit is Poor, are we better together (total salary £69k, excellent&poor credit) or him alone (£39k excellent credit)?

Brokers:
Estate agents recommended 1 for £500 :undecided, we had another (builder recommended) for £1,800

Scared to approach banks directly as they could care less if their computer accept/declines. Unsure if Broker best route.. may waste time/result in multiple searches without doing proper checking to match him/us to best possible deal we may qualify for? Approach existing lender via any Broker to apply for mortgage to new house after we sell up, if it helps?

What your takes, advice and recommendations?
Thank you kindly.
Best wishes,
D

amnblog · 27 May 2017 at 6:29PM

This will need to be a joint application.

Slim chance with a mainstream lender, more likely a specialist lender.

Don't told EA adviser, neither do you need to pay £1,800 broker fees.

Expect to pay some broker fees (probably between £500 and £1,000)

No competent broker is going to run a score with any Lender unless you have a decent chance of getting through score. There won't be pointless multiple scores.

ACG · 27 May 2017 at 8:13PM

I think amn has nailed it, but I thought I would just reiterate.
Chances of high street is pretty slim, I can only think of one lender who may do it.

It will also need to be joint app, but I doubt rates will be too much above high street - roughly 4% or under I would say.

A broker will/should do the research come back with a recommendation and then get the green light before doing credit checks. There is no point doing credit checks if you do not accept the rate.

£1800 broker fees for this is a little heavy. Just try to ensure any fees are only chargeable on offer or completion.

Donna2017 · 27 May 2017 at 8:50PM

Appreciated. Hopefully nothing beyond 4-5% rates... slightly grim outlook..

Donna2017 · 27 May 2017 at 8:54PM

ACG, thank you for reiterating. appreciated.

Dollydaydreama · 27 May 2017 at 9:43PM

Hi

Just a thought try Aldermore mortgages.

dimbo61 · 27 May 2017 at 9:43PM

It is now end of may and you have not sold/completed.
You want to rent for only 3/4/5 months.
Could be difficult finding a Landlord interested in taking a tenant for only 6 months so keep that quite.
Only sign a six months tenancy.
Any chance you could stay with family ?

ACG · 27 May 2017 at 10:07PM

Dollydaydreama wrote: »

Hi

Just a thought try Aldermore mortgages.

Nothing against Aldermore, I quite like them. But at the minute there are normally cheaper alternatives.

Donna2017 · 28 May 2017 at 1:59AM

Unfortunately, no family to stay with - closest is 2-3hours away.

Wanted to rent 2/3months only (def won't mention this, thank you) whilst waiting for the new build.
Thank you for raising this as timing has been a big issue and thrown off a few things in long discussions on HOW we go about this.

We are able to change the Plot we want before paying the reservation fee to the builder for same house in the next phase (these are due March 2018). Maybe this allows enough time then?

What would you recommend as a plan of action?
Sell up/Move out ASAP? We thought if we go for plot completion date March 2018 then sell up around September 2017 - not sure how much time to allow to sell house 1-2months? Estate agent valuer said the area is selling very well (we noticed they've sold half the properties that were on sale last few weeks in our area pretty quick).

We'd then apply for mortgage in principle via Broker in October (assuming house sold and now renting) and assuming process will be timely to exchange contracts on time. The builders will not release these for reservation until around about October 2017 as they mentioned the MIP may expire if done too early from completion time frame and some sales had fallen through so, avoiding that problem they will take reservations and look to exchange contracts within 28 days from around then (4-5months before completion).

This is so hard

, please let me have your opinion on best strategy.

karl1989 · 27 July 2017 at 3:20PM

Donna2017 wrote: »

Unfortunately, no family to stay with - closest is 2-3hours away.

Wanted to rent 2/3months only (def won't mention this, thank you) whilst waiting for the new build.
Thank you for raising this as timing has been a big issue and thrown off a few things in long discussions on HOW we go about this.

We are able to change the Plot we want before paying the reservation fee to the builder for same house in the next phase (these are due March 2018). Maybe this allows enough time then?

What would you recommend as a plan of action?
Sell up/Move out ASAP? We thought if we go for plot completion date March 2018 then sell up around September 2017 - not sure how much time to allow to sell house 1-2months? Estate agent valuer said the area is selling very well (we noticed they've sold half the properties that were on sale last few weeks in our area pretty quick).

We'd then apply for mortgage in principle via Broker in October (assuming house sold and now renting) and assuming process will be timely to exchange contracts on time. The builders will not release these for reservation until around about October 2017 as they mentioned the MIP may expire if done too early from completion time frame and some sales had fallen through so, avoiding that problem they will take reservations and look to exchange contracts within 28 days from around then (4-5months before completion).

This is so hard , please let me have your opinion on best strategy.

how did you get on with this Donna?
i would suggest joint app would be successful with most lenders given you income,
you would easily be accepted jointly for any property upto £250k.
cannot see an issue with this to be honest,
get a good broker and expect to pay no more than £500
i used "new homes advice" they were free and excellent broker, they got us a 2.4% mortgage on 10% deposit buying a house of 230k
they were really really good as well. very efficient and make sure you will get the mortgage before running any checks and my wife has poor credit score and 1 default and she also only earns 11k a year so i cannot see you having any problems.
let me know how you got on...

Please help. Advice re. mortgage, new house, etc

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