First time buyers help please!

amsutt98

Hiya

Me and my partner are looking into getting our first mortgage, my credit rating is fine but my partner has two defaults from his past one £600 thats satisfied and one for £1500 thats hes paying off at the moment (he hasn't had any bad credit for about 3 years) and has had the telewest in his name that has been paid on time every month for bout 2 years. We both have been in our employment for around 3 years earning about £20,000 a year each.

I just wondered if we are likely to be excepted for a mortgage with my partners defaults and the best lender to go to, it would be great to get a 100% mortgage because than we would have our savings to make improvements to the property, but is that very wishful thinking?

Any help on anything to do with our first mortgage would be great!

Many Thanks
Amanda

MortgageMamma

You would undoubtedly be better off paying a deposit and saving for your home improvements or paying for them gradually as time goes by. Unless they are vital to having he property inhabitable, then why pay interest just o have everything all at once? I believe saving and working on your home bit by bit brings a lot of pleasure.

As for 100% mortgage, there is one on the market at present that accepts ccjs so that could be doable for you. The rate is high though and its only accessible through a mortgage broker.

Nobody on here can tell you which lender is best to approach, its highly individual and is best assessed by a professional with full knowledge of your circumstances

Old_iron_balls

if its any help. I have a default (£450 satisfied) its 3 years old, and have recently been accepted by Northern Rock. The mortgage was set up via Bradford and Bingley.

amsutt98

Hi
Thanks to both of you that really helps,
For MortgageMamma are his defults as bad as CCJ's then? Do we have any chance of being excepted the highstreet lenders? If we borrow 90% do we have a good chance of being excepted or will it still be difficult? Where do you suggest we start?

Thanks for any help

AndrewSmith

amsutt98 wrote:

Hi
Thanks to both of you that really helps,
For MortgageMamma are his defults as bad as CCJ's then? Do we have any chance of being excepted the highstreet lenders? If we borrow 90% do we have a good chance of being excepted or will it still be difficult? Where do you suggest we start?

Thanks for any help

In general, defaults are more damaging to a credit file than a CCJ in many cases for the following reason.

A CCJ is merely where a 'county court' has judged that one person owes another one a sum of money. It could be that a builder takes you to court for money you are witholding due to a dispute over the work, but the county court rules in the favour of the builder. As long as the CCJ amount is paid in full within 30 days of it's issue then it will never appear on your credit file.

A CCJ does not necessarily mean that there is a history of delinquentcy (industry term) on a credit agreement or non payment of a loan or mortgage etc.

A default however is only usually issued when a person is in breach of the terms and conditions of a credit agreement and thus defaults on that agreement. They are usually a direct reflection of the payment history of that person.

What they do not take into account though are the why's and how's behind the situation. This is where I personally believe the whole system may be flawed.

Andy

MortgageMamma

You won't get accepted by the majority of high street lenders but there are a lot of lenders who would be happy for your business., as I said providing you approach the right lenders with a product designed for your level of credit status you won;t have problems. You do know you don't necessarily need a cash deposit on a right to buy don't you?

amsutt98

Ok im learning lots, so if one default is satisfied and the other will be soon how long should it take before my partners credit starts looking better? Does the debt being paid back look good? MortgageMamma Im not sure what you mean by right to buy?
Sorry i really not know alot about mortgages thats wy im asking so many questions!!

MortgageMamma

amsutt98 wrote:

Ok im learning lots, so if one default is satisfied and the other will be soon how long should it take before my partners credit starts looking better? Does the debt being paid back look good? MortgageMamma Im not sure what you mean by right to buy?
Sorry i really not know alot about mortgages thats wy im asking so many questions!!

Ahhh, sorry I'm going nuts as I'm very busy this morning, ignore the right to buy comment was confusing you with another thread I'm on!

Yes your credit being paid back looks good but until it is fully repaid it won't make a great deal of difference. Any ccjs or defaults on your credit record will remain there for 6 years, and lenders do vary widely on their stances to current or previous adverse credit. I really couldnt recommend a lender or product or really say anything further on here that wouldnt be construed as official advice, but like I say, there is one product on the market at present that I know of that COULD be suitable for your 100% mortgage

Careful_girl

Come on MM keep up!!:rotfl:
CG.:T

MortgageMamma

Careful_girl wrote:

Come on MM keep up!!:rotfl:
CG.:T

I can't CG, I'm overrun! better go get some real work done that will earn me some money.

Love the signature by the way! I suppose we'll see much more of you due to the school hols?

Careful_girl

Yup!:D so you had better behave. Now advise this FTB and get on with it.
CG:j