Avice for first time buyer please!

paul103

Hello all
I recently viewed my credit report on Experain and my credit rating was 781 out of 1000 which marks me down as a moderate risk borrower. I had 2 arrangements that defaulted (but have since been satisfied) 5 or so years ago and I wasn't registered on the electoral roll.
This year I'm hoping to buy my first property for approx 150k, I earn 40k including bonus and I've managed to save 12k for a deposit.
Can anybody please advise as to whether they feel one of the leading mortgae providers will want to business with me or am I destined to pay over the odds elsewhere?
Thanks for your time.
Paul

crossleydd42

Another year and the problems will fall off the edge, since when you'll have a clear record. I 'd say that if your record is very good recently, any application would be viewed more favourably. Thry two or three lenders yoursel and, if you have problems, go to a mortgage broker who can do a trawl of those known to be more favourable to people in yr position.

AndrewSmith

I would say visit a local broker anyway.

The problem with approaching lenders yourself is that if you are declined it will show as an application and decline on your credit file when the next lender looks. This can go against you the next time you apply.

A broker will be able to look at your situation and should have sufficient experience (check with the broker how long he has been in the industry) to know who to approach and who not to.

Ask people you know to recommend a broker to you, if not use local directories. A local broker to you is best as you will have a direct point of contact and will be better placed for updates and chasing etc.

Hope this helps

Andy

herbiesjp

As Andrew rightly says if you go and apply to various lenders yourself they could knock you back each time and these credit searches could make it even mor difficult to get a loan agreed.

That is where the knowledge of a broker can help - as they will normally be able to help you place the mortgage with the right lender at the first time of asking.

Having said that I do not think your situation looks too bad if the defaults are from 5 years ago.

paul103

Thank you all. I really appreciate your help.

annie-c

Paul, I'm not a financial adviser, just an ordinary punter like you, but I would also recommend using a broker. See Martin's article on mortgages for a pointer in the direction of a commission-based broker, if you don't want to pay fees up front.

If you still need to get yourself on the electoral role (quite important for a good credit rating) then see the following link

http://www.aboutmyvote.co.uk/

Good luck!