Mortgage needed after an iva

Foxy-Stoat_3

Hi folks...

Just completed my 5 year iva and looking to buy my first house with the GF.

Who is the right people to talk to about adverse credit mortgages?

Thanks

herbiesjp

What deposit do you have?
What prices are you looking at?

Foxy-Stoat_3

The house we are renting at the moment was valued at £150,000 about 18 months ago, so not sure what its worth now. This is what we want to buy.

We are renting off my step mum who is willing to knock 15% off whatever the estate agent values it as, as a gifted family deposit, if there is still such a thing.

Joint salary is £45K. I have zero debt (now) she has £18K student loan.

We are able to save approx £1K a month from next month, so if we wait for 6 months we would have a messly £6K deposit !

What chance, if any do we have...anyone?

maninthestreet

Keep out of debt, keep saving. £6K deposit won't get you very far - and what about the stamp duty?

Foxy-Stoat_3

The family gifted deposit thing works out to £22,500, based on house value 18 months ago, so total "deposit" will be £28,500 on a £150,000 house.

Or am i missing something?

Stamp duty will either be £1350.00 or £1500.00

Tuscan

dosent work that way now days, you will need a minimum of 10 percent deposit of the sale price, even if the price is less than the value of the property

herbiesjp

Tuscan wrote: »

dosent work that way now days, you will need a minimum of 10 percent deposit of the sale price, even if the price is less than the value of the property

Not true.

Some lenders are happy with family gifted deposits, and would not need any extra funds from the applicant.

Although in this case, due to the IVA, it will be difficult to get agreed at 85% - maybe at 50%

Foxy-Stoat_3

Hmmm, it may be worth saving for 12 months, then my credit file may of cleared up a bit and we'd saved a bit more hard earn'd and tax'd British pounds.

So you think 50% deposit is more realistic....crikey.

Our rent is £500 a month and we can save about £1000 a month at our current salary level so a repayment mortgage of £135,000 at 6% interest is about £900 a month, on one of them guide calculators. No idea what the % rate will be if we are able to get an offer tho.

Tuscan

unless ive read it wrong its not a gifted cash deposit, rather there knocking 15 percent off the valuation price. so wouldnt a deposit still be needed?

herbiesjp

Nope.

Purchase price is still the £150k - however mortgage needed for 85% as the 15% is being gifted.

Foxy-Stoat_3

The way i understood it, the house's value is say £150,000, but we are buying it for £127,500 (15% less). In theory there is £22,500 equity at the day of purchase. If the lender is made aware of this has a letter from the seller's solicitor stating the reduced purchase price is for a family gifted deposit rather than cunning haggling, then this can be used as a deposit.

But very few companies accept this and i bet very few of them will accept me, so it may be a non starter.

Thanks for the input tho !!!

Anyway, back to the original question....

Who would be the best advisor to talk to for sub-prime or sub-standard mortgages?