Haven't Got A Clue

JOHNSTONE1

Hi,

I'm probably going to sound really stupid but i need some advice about buying a first home. We have always lived in Army accomodation but my husband has now left the forces and we are living with my parents. We have been there for almost a year now and we cant take much more apart from having no privicy its extreamly cramped and theres no space to move!
During this time i have saved up 10k we have one loan with quite a lot to pay off. My husband has quite bad credit but nothing owing currently. Iearn 22k and he earns 18k. Have we got any chance of getting a mortgage on what we earn and in our current situation? i dont to go to a mortgage advisor and be laughed at!

Thanks

JayZed

Your joint income of £40K isn't bad and in theory could get you a loan of up to around £140K. But there are three things of concern, and it's not really possible to comment properly on them without more information:

1) This outstanding loan - how much is it? That will certainly reduce the amount that any bank's willing to lend, but shouldn't actually prevent you getting a loan.

2) Your husband's credit record - how bad is it? Does he have defaults registered against him in the past few years? It will certainly put some lenders off and, depending on how bad it is, might force you to go to a higher-rate "bad credit" lender.

3) You have a deposit of £10K. These days you really need a deposit of at least 10%. Is it realistic for you to look at houses around £100K in your area? If not, you may need to save up a large deposit.

JOHNSTONE1

The outstanding loan is for 20k so quite alot i know but this paid off all my husbands debt so at the time seemed like a good idea.

He has defaults against his name but no CCJ's or anything i know this isnt good but we though clearing all the debt and starting with a clean slate for him would be a good idea.

We have seen a new biuild for 100k which is offering a new home buy scheme of no deposit and only a 70% mortgage required does this sound possible?

JOHNSTONE1

Also i'm planning on joining the poilce, this may take a while but if i get in will mean my salary rises to 35k and that we would be eligable for the key worker scheme. Should we wait util then do you think?

AdrianW2

JOHNSTONE1 wrote: »

Also i'm planning on joining the poilce, this may take a while but if i get in will mean my salary rises to 35k and that we would be eligable for the key worker scheme. Should we wait util then do you think?

Joining the Police will take 12 to 18 months (even if you get in and there's a lot of competition at the moment). Even if you join the Met you won't be on 35k for a while.

IIRC the key worker scheme isn't very useful, to oversimplify you end up paying interest on an asset you don't own. Key worker flats, on the other hand, are a reasonable deal if you want a cheap but simple roof over your head (and they don't put you in the same block as the bail hostel, which does happen).

superfran_uk

The police applications process is notorious for being very drawn out. It could be upwards of two years between application and starting, and that's if you get through each of the three (?) stages first time. Even then you will always start on 21k as a police officer. So I certainly wouldn't recommend holding out for this option.

I applied in October (after almost a year of waiting for the application form to be sent), I was informed in March that I was successful and would have an interview at some point over the next financial year and am still waiting for the details - in the meantime I have got a new job and am not even sure that I want to continue the process!

However, depending on your husband's levels of credit problems, you may not be able to get a mortgage at the moment as even people with a good credit history are struggling. Make sure you check both your and your husband's your credit ratings online at Experian so that you are informed, and if necessary go to the DFW forums which have advice as to how to improve your credit rating.

Have you looked into government schemes such as Mychoice Homebuy or Ownhome? They are for first time buyers as well as keyworkers and could well be worth looking into, as your income fits into the eligible bracket (I believe it's £20,000-£60,000 per couple). They will also allow you have a deposit, however you do not need one. In this case, perhaps you should look at how much your loan is costing you and how much your savings are accruing and look into the possibility of offsetting one with the other, but only if it makes financial sense?

jojo9239

My friend joined the process of the police 2 years ago and still isnt in so I wouldnt include that in any of your choices x