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Mortgage Help with Average Credit Rating & Several Factors
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iscrimger
Posts: 222 Forumite
The property I privately rent is being repossessed by the lender so they can sell it. I have my 2 months notice to quit from them. When the whole process started I looked into buying the property through a shared-equity scheme - I still have to move out and go through the normal buying process.
I am aware my application to the shared-equity scheme may not be approved but if it was it leaves me with some bigger headaches in obtaining a mortgage.
My current borrowing level is 80% of the available amount and my credit rating is a little above average - meaning I'm classed as a risk. I have never missed or paid late any payments on my debt apart from one, my Next Directory which shows 1 missed payment and several late payments 2-3 years ago - strangely when my debt was at it's lowest.
My income can vary greatly with commission & overtime hours. I also rent a room and combined my income is over £25k and approaching £30k. I have used mortgage calculators and have an idea what a lender could potentially offer. I have completed a Mortgage Promise from Halifax but I didn't use accurate income figures and the promise was for £65k - I didn't pursue it.
Basically I want to buy the property I've been renting and any mortgage application will probably be based on my credit rating in 3 months time so I have very little time to sort out and reduce my debt and improve my credit rating.
It will be impossible for me to significantly reduce my debt in 3 months because I have to raise another deposit for a flat - My current deposit is unlikely to be returned while I'm still in the property being repossessed although I am looking into this as it's the lender now terminating the tenancy and not the agency holding the deposit.
I guess I could just complete a 2nd mortgage promise with the Halifax using my now accurate income, but does anyone have any advice for me in my current situation?
(The property hasn't been valued yet but based on the current values in the area the property is likely to be valued around £135k)
I am aware my application to the shared-equity scheme may not be approved but if it was it leaves me with some bigger headaches in obtaining a mortgage.
My current borrowing level is 80% of the available amount and my credit rating is a little above average - meaning I'm classed as a risk. I have never missed or paid late any payments on my debt apart from one, my Next Directory which shows 1 missed payment and several late payments 2-3 years ago - strangely when my debt was at it's lowest.
My income can vary greatly with commission & overtime hours. I also rent a room and combined my income is over £25k and approaching £30k. I have used mortgage calculators and have an idea what a lender could potentially offer. I have completed a Mortgage Promise from Halifax but I didn't use accurate income figures and the promise was for £65k - I didn't pursue it.
Basically I want to buy the property I've been renting and any mortgage application will probably be based on my credit rating in 3 months time so I have very little time to sort out and reduce my debt and improve my credit rating.
It will be impossible for me to significantly reduce my debt in 3 months because I have to raise another deposit for a flat - My current deposit is unlikely to be returned while I'm still in the property being repossessed although I am looking into this as it's the lender now terminating the tenancy and not the agency holding the deposit.
I guess I could just complete a 2nd mortgage promise with the Halifax using my now accurate income, but does anyone have any advice for me in my current situation?
(The property hasn't been valued yet but based on the current values in the area the property is likely to be valued around £135k)
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