FTB 30% ish LTV mortgage?

Hopejack

We are hoping to sell our house (no mortgage on it) next year (ha ha I hear people say!). IF, we do then we hope to buy a house around the £250k, with our savings and equity from the house we would be looking at around a 30% LTV mortgage required. I guess because we currently have no mortgage we'll be classed as FTBs.

So, just in principle, is this going to mean we are able to go to those 'more picky' lenders?

In terms of salary, I am currently not dong any regular work - do a bit of freelance stuff but v little pay pa (I'm a SAHM to our two young children), my DH is currently on around £47k pa. Neither of us have ever been late with any payments of any sort, we don't have credit cards or loans outstanding (DH has a CC but we've hardly used it). Have had the odd loan or card in the past and always paid off promptly etc so there is some history of credit worthiness there!

I'm tempted to do a credit check for both of us but really concerned that these things leave 'marks' all over your file which I believe isn't a great thing?? Would this happen? This is the other reason I don't want to go to a lender now and ask for a MIP as it could be a good few months before we are able to proceed - dependent on a house sale - how long is a piece of string eh?

Should we just do the credit check thing and see how we go on our scores?

It worries me that so many people are reporting being refused for mortgages these days!

PS - One of the things that we may have an issue with is that we have moved a fair few times in the last 8 years or so - twice in the last 3 years! Lord knows why it affects mortgage applications but I've read recently on here that it can.

g_attrill

If you mean borrowing £75k on a £250k house then I think you would be ok even with a picky lender. Some (most?) lenders will lend less if one partner is not working, however I think the income is more than enough to get past this.

For credit files - it won't hurt at all, certainly if you use the £2 statutory request method, however that won't get you your score, but if you just want to check that everything is ok it will be fine.

Hopejack

Thanks!

Yes we hope to borrow 75k max so around 30% of LTV of property.

Being thick here, what is the £2 stat method? If I were to use say creditcheck.co.uk (free) would it leave a footprint on our files? I think we prob need to find out that all is OK and what our credit score is too.....

Joe_Bloggs

MSE Martin has written a guide to credit rating and how it works here.
J_B.

herbiesjp

Checking your own credit file does not leave a "bad mark"

It is actually a good thing to do - to make sure there are no mistakes on there. Better to sort them out well in advance of applying for a mortgage, than at the same time

You will not be classed as a FTB buyer by most lenders, as you have had a property in the past.

The mortgage amount will be fine with most lenders, especially with the low LTV

Make sure you are on the electoral register, and you should be fine

g_attrill

Hopejack wrote: »

Being thick here, what is the £2 stat method? If I were to use say creditcheck.co.uk (free) would it leave a footprint on our files? I think we prob need to find out that all is OK and what our credit score is too.....

The £2 method is what the credit agencies are legally required to offer, but they usually make it tricky to find out about on their website and they try and push their subscription services. It gives you the same information in a report they post to you, but it's slightly harder to understand than their subscription service.

The Experian 30-day trial is good, but you need to pay extra to view your score. I wouldn't get too hung-up on what your score is, as mentioned as long as you are on the electoral roll and don't have missed payments on record you should be fine.

Hopejack

I am surprised that we will not be classed as a FTB as we have no current mortgage - hmm I guess as you are a mortgage advisor herbies, you know your stuff so will take your word for it! It doesn't seem fair though as we are not porting or paying off mortgage on completion of anything. Ho hum

I will have a look at Martin's advice - thanks. I think I will look at Experian or the like if it won't cause an issue on our files - better to iron out any possible mistakes now. I wonder how many there are on average in one person's report - they hold so much data it's difficult to say there won't be any!

herbiesjp

Some will, but most will not