FTB - with bad credit - will we get a mortgage?

kazimojo69

Hi

We have seen 2 possible houses we would love to buy (only 1 - but choice of 2). They are brand new and just being built.

We have a large deposit so we would either need a £50k mortgage or £80k mortgage. Ideally we would love the house with 80k mortgage - but will take what we can get. The house prices we are looking at are £120k & £152k. We would want a mortgage over 21 years.

We looked a while ago at lenders (sub prime I think) and they said I had items on my report that would be clear by next June. CCJ's come to £700 - so can clear or cut these down.

My husbands had a couple of bits but he was told he would be able to borrow £70k on just his.

Our joint income is £32k. Just want a foot on the ladder if we can. We are currently paying £750 in rent.

Is there anywhere we can go to or what are the chances of borrowing this amount. We want to try and keep our money for deposit if we can but can use some if need be to clear things.

Help??

herbiesjp

With that kind of deposit you will be able to find a lender

Obviousaly which lender, and which rate, will depend on the details of your credit file. Do you have up to date copies of these?

Best bet is to chat with a good whole of market adviser armed with your credit file, and let them see what they can find

kazimojo69

Thanks

We actually have a £40k deposit - but are hoping to do either 80/20 shared ownership from the building co or borrow the rest from family.

I am just trying to get a copy of our up to date reports at the moment - but just been told Equifax cant verify me!! Need to send copy driving licence etc.

WE have had a company called GPCHESTER helping us and will be looking at which lender to approach - not sure if these are whole of market.

We are desperate for a home of our own and just think this will be a great opportunity.

herbiesjp

Shared ownership will be a problem with some lenders.

Make sure they are definitely whole of market before doing anything

Also do not be fooled into paying huge fees becuase of your credit problems

Conrad

If any ccjs were in the last couple of years, the rate could be potentialy very high.

The most commonly sought lender in this situation is Beacon home loans, but they are very fussy. S/O is an added complication for such a lender - I cant recall if they do S/O or not.

Another lender is Platform but again I don't know off the top of my head whether they do S/O and thier rates tend to be very very high.

I just noticed you say Equifax can't verify you - lenders will want certain proof of address covering 3 years and your ID, and will not accept any grey areas.

kazimojo69

Thanks - Can I apply to Beacon Direct or do I need to go through a broker?

I think with Equifax I may have put a wrong length of time resident in a previous property - I think I put a 18 months instead of 2+ years.

herbiesjp

Beacon has to be via a broker.

But it has to be a broker who has access to the packagers that Beacon deal with

kazimojo69

herbiesjp wrote: »

Beacon has to be via a broker.

But it has to be a broker who has access to the packagers that Beacon deal with

Thanks - any idea where I can find which brokers they deal with?