First time buyer.. help!

xxlittlemissxx

Hi,

Firstly my apologies as I am probably going to sound thick and you will have probably given advice to FTB's a million times!

My partner and I have started to look at buying a house, our current contract for our rented property is up soon and we really dont want to renew, or carry on renting.

We have seen a property that we really like and we have now made an appointment with a broker. My question is are we likely to get a mortgage?!!

We have a deposit (approx 15k), both work full time and the OH gets money from a trust fund and investments (i think, im not all clued up on that kind of stuff!). I also in the past had some credit problems (I was a silly 18year old!), but I am now debt free with nothing left outstanding. OH only has his student loan & 1 credit card which he regularly pays off.

When we go to see the broker does he, or should he take details of this extra income? It isnt a lot, but of course it all helps!

Sorry for the long post, my mum has never brought a house and OH's never had a mortgage (lucky her!) so cant ask them for advice!

Thanks!

poppysarah

You buying a house for 100k?

pandamonia

its usualy only salary and some bonus they take into account. keeps things simple.

xxlittlemissxx

No, we want a mortgage for about 130k

zone

Have you both been in full time employment for the past 5 years?

Maybe save a bit more and get your deposit to £20k that will help too.

xxlittlemissxx

Hi,

I have been employed for over 5 yrs, other half hasnt though as he was at uni until 2 yrs ago.

At a push we have got 20k, we just didnt want to put all our savings into a deposit incase we needed some after we moved

poppysarah

The bigger the deposit the better mortgage deal you can get AND the less mortgage you have to pay off.

JayHam

Your mortgage decision will be based on the information you provide on your application, how you handle your account/s (if you apply through your own bank etc) and your credit history.

My advice would be look at your experian credit report to determine if you have any negative factors or incorrect information and obtain your score for an indication of how credit worthy you are.

Pending a good credit report try a mortgage promise with someone like the Halifax who will run a soft search and give you an idea if your application would be succesfull without effecting your credit report with a search!!!

bob79

To get a mortgage 3 things are important:
1. deposit
2. income
3. credit rating

A 15k deposit will be high enough to get the 130k mortgage that you want (it won't be at a great rate though).

You don't mention what your income is. The conservative estimate is that you will be able to get a mortgage of 3.5 times before tax single income or 2.5 times before tax double income. So for a 130k mortgage the better earner of you would need to earn 37k per year or your joint income needs to be 50k per year (both before tax). The above is conservative: most lenders will give a mortgage for somewhat higher income multiples (so if you earn less then it might still be possible to get a 130k mortgage).

You don't mention enough about your credit rating. How long ago were your debt problems? How bad were they: any defaults? bankruptcy? Defaults disappear from your credit file after 6 years I think. If you still have defaults on your credit file then it will be almost impossible to get a mortgage.

downs523

my partner and i have a joint income of £42k and got a mortgage offer for £135,000 with britannia