What are my chances?

MatWamby

I am looking to get a 90% mortgage on a £100000 property with my partner, i have approached a whole of market broker but they are at very initial stages and haven't done a credit search yet. We are 1st time buyers with £10k deposit.

I am very keen to buy, but my main worry is meeting criteria:

My salary is £19420pa and partners is £14900pa

I have 2 loans totalling £300PM, 3 credit cards totalling £102PM & £740 overdraft cleared each month
Partner has 1 loan for £258PM, a catalog for £12PM, and a £2045 overdraft she is always in.

I also work for a broker but not asked them too many details as want to keep this private from them, but they have said based on these figures and the mortgage size there wont be a problem on affordability.

Main issue is late payments, for the last 3 years i have some but only on 1 credit card which is still live, was a few days late in June 2008, same again Jan 2007 and in April 2006 i went to 2mths late.
Partners catalog has had 2 or 3 late payments in the last 12mths too.

No CCJ's or Defaults.

Also, neither of us are on the voters roll due to recent move.
We have both had 3 addresses in the last 3 years due to renting.

I have been in my current job for 5mths, the previous one for 4mths, the one before that for 3mths and the one previous for 2 years, all through bad mistakes and left on my own accord.
Partner has been in same job for 2 1/2yrs.


Based on these details does it sound like i will have a problem? Ive got myself a bit panicy about it for no reason, i can still rent if needs be, but i do want my own property.

Thanks in advance

herbiesjp

The figures look fine

The late payments could cause a lower score with some lenders, but you should be fine with high street deals (though some may be picky in the current climate)

mattpearce79

i checked my credit score on https://www.experian.co.uk, the first month is free and it lets you check all the credit active or inactive. My records show back to 2002...you have to give your debit/credit card details, but just cancel after the first month and nothing is charged.

It might give you insight as to what the banks/Building Societies are looking at when they score you.

Matt

MatWamby

Thanks for the positive feedback herbie, hopefully it should be ok then

Matt, i have registered with www.checkmyfile.com and i get a monthly report from experian, equifax and callcredit, all have the same payment history and in the last 3 years all i have is the above.

They do go back to 2004 when i 1st got credit and on my 1st loan equifax states i had an arrangement to pay, but the other ones say i had normal payments, and i cannot recall having an arrangement??

Am i correct in assuming that mortgage lenders only check the last 3 years credit history? And also only live accounts??

BYALPHAINDIA

I honestly don't think you will get over 75%.

90% mortgages are quite rare in today's climate.

I don't think you can get a 100% mortgage now, AS most lenders phased them out.

75% is the maximum nowadays.

I would think about it carefully getting a 90% mortgage, Think about the implications of losing your jobs etc?

It is a big commitment, Even on a 45,000 per anum salary.

If you can try and put as much capital down as possible, This will help reduce your mortgage and it's interest charged on the property.

To be honest I think you will struggle.

Best Of Luck.

BYALPHAINDIA

Mortgage Lenders go through everything with a fine toothcomb, They even go back to when you first opened an account etc.

It is a kind of 'Medical Examination'

I used to be a Mortgage Underwriter (National & Provincial) & The Then (Bradford & Bingley)

Best Of Luck.

BYALPHAINDIA

Reading into your circumstance, The employment stability is another issue they will take into consideration.

Some lenders are quite ok with it, But others e.g the then Bradford & Bingley would not touch anyone who was in and out of work - (Yoyoing)

They Preferred people with 10 years min work experience etc.

This was to safeguard their own lending interests.

I noticed you said you had credit cards, That's another 'rocky road' for the lending criteria.

I would try and get these paid of ASAP because obviously this will go against your Lending score.

If you could arrange to pay off the 3 cards before your mortgage application then that would be a real help to your application.

And don't get any more credit or loans round your neck!!

You will have enough to pay as it is with your possible new mortgage.

No CCJ'S etc that's good, And try and keep it that way.

CCJ's can cause alot of lending problems, As a CCJ is with you for 6 years, And fully verified by lenders, Shops, Stores, etc.

Your property is quite high value at 100,000 for a First time buyer, So the lenders will ask why you are looking at a high value property?

If it helps, Ask your employer to help you out with a reference for a mortgage, As you have only been there 5 months? and most lenders like at least 6 months or more.

A glowing reference will go along way for you.

If you do struggle to get a mortgage, Try an IFA (Independant Financial Advisor) someone who gets paid for what he/she sells, Not someone who doesn't work hard for you.

There aresome very good IFA's around and sometimes can act as a middleman giving you a good deal.

Best Of Luck.

MatWamby

Are you still a mortgage underwriter?

I myself am a Secured Loans Advisor and looking into my research with the morgage lender criteria i have access to at work most of the 90% LTV lenders don't really take this into account, the will even consider contract workers with short durations. My employment history has been very stable from 1996 to October 2007 too.

With 90% being a record high for first time buyers as in a significant deposit then these mortgages are and have to be available to us, due to dwindling acceptance numbers, i know there is quite a few lenders that will do 90%, even a small number of 95%, 100% has gone

£100k is not a high value for a 1st time buyer, and will be nie on impossible to find a cheaper property in my area unless its a shared ownership scam, ive been resticted to one area to look at but happily its an area i used to live in. I currently rent in the centre of Wilmslow and the rent is alot higher than even if im offered 8%, and im am not stretched by it, i recieve regular commision which i havent taken into account on my income.

The risk of losing my job can be covered by ASU cover which i will get,i know personally that aslong as i have been with my current employer for 6mths that they will grant a policy for which i will have on inception, i will still have the risk of there exclusions for misconduct and such but as i said i have always left on my own accord.

I have searched the majority of the lenders criterias that are looking likely based on my circs that offer 90% LTV through there intermidiery websites aswell, nearly all of which base there credit scoring on previous 3 years, and i also know my employer do this too for mortgages and secured loans so should be ok there.

Only thing that isn't 100% clear is the impact of the late payments which i wanted to clear up.

I am waiting for some consent to act on my behalf forms from the broker i am using before they approach any lenders, i just wanted some peice of mind whilst waiting but they will be in tomorrows post.


I guess the proof will be in the pudding, hopefully will be good news.

BYALPHAINDIA

No not anymore, The work went quiet when all the 'Internet Banking' came into fashion.

Not many jobs in Underwriting thesedays, I thought about doing an IFA or FPC course.

It was a really busy job in the 90's we had a floor full of Underwriters.

But theyv'e all gone now.

I don't think the late payment record will disqualify you, We are only human and everyone will have missed a payment at some time.

It is just a problem if it is constant missed payments eg - May June July etc.

I think you will be ok, You seem to have your hat on.

Best Of Luck.

herbiesjp

Whilst BAI has some valid points - they are from the perspective of B&B and not representative of the market IMHO

You really do appear to have done your homework so well done :T

As I said before, you should be fine for a high street deal of some sort with the odd late payment here and there

Toughluck

Matwamby,
I want to re-itterate to you want herbies said. Missed unseucred payments will not stop you getting a mortgage. It will lower your credit score but that is about it. as long as no CCJ's or defaults have occured, which is what I look for in sourcing you should be OK. Nationwdie do 95% LTV. C&G and HSBC among others do 90% LTV.

just skimmed over the credit you have, you need a broker to work out the affordability or income multiples with regard to the credit you have remaining. I make it very close indeed or am I missing something!!