Quick Question

iwantoneplease

Just a couple of questions as I'm considering when to buy my council house, After my discount my house will cost me 30k, I have 1 default that has been paid in full and due to come off my credit file in 2012 rest of my file is fine from 2007 onwards, only three individual late payments markers.

Do I wait till 2012?

Can anyone work out how much deposit I would need and roughly what would my repayments be?


Sorry for the question don't want to really ask the banks and be turned down thought it would be better to ask on here

CloudCuckooLand

Its not just that you need a deposit, around £3,000 minimum, although £7,500 would get you a better mortgage deal.

You would also need to clear your other debts as a lender will assume that the deposit has come from those, instead of genuine savings.

Using http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml you can put in the amount of mortgage, period, etc to get an idea of payments. i.e £30k at 6% would cost £196 per month over 25 years.

opinions4u

CloudCuckooLand wrote: »

Its not just that you need a deposit, around £3,000 minimum, although £7,500 would get you a better mortgage deal.

Most lenders who accept RTB applications will lend 100% of the purchase price as long as the standard discount has been applied. The LTV will be calculated against value in this case.

iwantoneplease wrote: »

I have 1 default that has been paid in full and due to come off my credit file in 2012 rest of my file is fine from 2007 onwards, only three individual late payments markers.

If you are referring to the £320 CCJ in the signature, it may make life awkward, but not impossible.

What's the council's valuation of the property?

Do I wait till 2012?

I would talk to an independent mortgage broker now who can probably get an answer for you.

Can anyone work out how much deposit I would need and roughly what would my repayments be?

Depends. Many lenders will lend you 100% of the purchase price on right to buy. So you'd only really need valuation and solicitor fees. It may even be possible to get these added to the loan.

The BBC link in the post above is helpful. For example, £30,000 over 20 years at 6% is £218 a month. If rates doubled to 12% your payment would be £335 a month.

Sorry for the question don't want to really ask the banks and be turned down thought it would be better to ask on here

Seeing a broker will help him/her to establish your precise circumstances. If you get declined you will have a better idea as to what you need to do to clean up your credit history. If you get accepted, then what's the problem? Your worst outcome is to apply again further down the line.

In the mean time, pay all your commitments on time and try to pay off any other debts that you have. Then don't build them up again.

Conrad

I love these 'quick' questions. In fact you are looking at an awful lot of time to determine if a mortgage is possible and what the terms of deposit will be.

You mention 'only' 3 late payment markets - well they will need looking into plus the lender will want to see if your rent is paid on time in full. If you pay things late (as 3 late payment markers would indicate) the lender needs to see evidence you will be able to make the mortgage payments on time, even though you were'nt able to meet existing obligations.

Remember to you a late payment may be no big deal, but how would you feel if your employer or the state paid you late 3 times?