Want a mortgage for first time buyer

killakz

Hello All
Thanks for taking the time to read my thread

I am looking at taking out a joint mortgage for a property, i will be a first time buyer.

The problem i think that i might have is that i have checked my credit file with experian and have found out that i have 7 defaults on mine and on my partners she have no defaults at all with all payments made on time to her creditors

will this affect us in getting a mortgage for a homeless accomodation project of ours.

we are basically looking at getting a large house that will need some work doing to it but once the work has been done we are looking at supporting homeless people and getting them back into independancy by accessing them on a weekly basis and providing everything goes all good we would then like to put them into a flat of there own and carry on supporting them untill they feel they can manage on there own

gizmo111

This won't be a residential mortgage, you will need residential funding. What sort of money will you be putting into this? Are you planning for the support element to be funded by Supporting People?

benjo

Not sure if I understand, you are a first time buyer your GF isnt? in which case what are her circumstances re current mortgage comittments?

You want to buy a house requiring renovation and borrow money for that on that?

You say if it goes well you would 'put them into a flat of their own' are you planning to buy the flats? sorry I didnt understand.

What is the purchase price of the property?
Your income?
GF income?
How much deposit do you have?

Im guessing you have enough money to renovate the property in the event of the lender withholding a portion of the mortgage until works are completed.

Im not a mortgage advisor, but my understanding is that yes, defaults will affect your mortgage application, the higher deposit you have the less effect defaults seem to have - generally speaking since there is a little less risk for the lender.

killakz

no this will not be funded by siupporting people

maninthestreet

Killakz,

Your original posting is a bit 'light' on details about this homeless project you have. Presumably both you and your GF are currently employed, either full time or part time? What is your joint gross income? What savings do you have?
Have you found a property for this project that you wish to buy?
How will you fund the renovation costs of the property?
Will you be living at this property as well as any homeless people?
How much rent do you intend to charge for someone to stay at this property?

gizmo111

killakz wrote: »

no this will not be funded by siupporting people

Who will fund the supported part of the project then?

Radiantsoul

I am very confused. Are you planning running this as a charity? It seems the most obvious way.

It won't be a normal residential mortgage, and the idea of having a lot of homeless people is likely to spook the mortage company. What type of tenancy are you looking at offering to them?

If you are a charity you might find some solicitors and mortgage brokers are prepared to help you out on a pro bono basis.

Conrad

Kilakaz, you really need to be clear if you want meaningful answers.

Reading between the lines I think you are needing 100% finance, on a non residential property.

This is high risk, exotic lending.
The maximum loan to value will be 70% with rates from about 12% pa.
Defaults are the least of your concerns.

Conrad

Radiantsoul wrote: »

If you are a charity you might find some solicitors and mortgage brokers are prepared to help you out on a pro bono basis.

I arranged fiance for 2 charity owners - both enjoy a substantial standard of living. Don't be fooled by those claiming to be angels.
Another 2 similar examples - one runs a pseudo charitable African nurse agency - he owns lot's of B2Ls and drives a big Merc -he is adept at entrapping well intended state resources.

The other runs a train to gain scheme - it's the biggest scam I've come accrross. He makes around £90,000 per month, most of which is pure profit. The state really hasn't got a clue when it comes to dolling money out to shrewd business people.

In fact in makes me damned cross.

killakz

sorry for the lack of information

our combines income atm will work out at approximatly 30,000 per year before tax and insurance

this project will not rum on a charity basis but a business.

all support that will be offered to the residents will be from myself so will not need anything like supporting people

the residents will have a occupation licencee in which sence they will have very minimum rights to there rooms

this business will work on the basis that i want to take out a mortgage for this property and then the residents will be supported and placed on programs for around 18 months. this will give me the oppertunity to save more money to take out a second morgtage on buy to let basis.

the homeless accomodation will be occupied by myself and my partner along with the residents

gizmo111

all support that will be offered to the residents will be from myself so will not need anything like supporting people

So who will pay your wage? Housing Benefit will only cover the rent and in a shared house this will not be the single room rate. Homeless people do not have funds to pay for support.