Basic Mortgage Help needed

Brassic

I was hoping someone could offer some advice please.

We got our current mortgage 4 years ago when our credit history wasn't good. We've since improved it lots I can't find for some reason our last mortgage statement, but in Jan 2009 it was £133735.57.

In the current market I'd like to say our house would reach 170k. We had advice to put it on at 165-169k at the end of last year, but they tell me things have improved slightly since then.

We have just seen the house of our dreams today. Enough space for all of us at alst :j It's on a £239k. I know they won't negotiate hugely.

We have no extra money to put towards it. We can pay for fees outright instead of putting money towards the last of our debts for these few months.

I phoned a Mortgage broker today and he said that until I had an offer accepted, he couldn't give me any figures. Now, that's a bit disappointing because I was hoping to work out all my figures first so I know a) whether I'm likely to get an offer, and b) if we can actually afford it, before messing these people about who have already had 2 fall through.

My hubby earns 42k and I earn 21k. The only official loans we have left now is an egg one which is 328 quid a month.

I'm tied in to our current mortgatge until May, but these people have had this house on the market since middle of last year I think, so I'm hoping they'd wait a bit.

Any advice on figures or good companies would be much appreciated!!

Many thanks in advance,
Brassic

VIGILANT22

Yr credit history goes back 6 years....You dont say how your credit file was affected...ie ccj's/defaults/late payments
If yr credit file is still affected you have no hope of obtaining a 90% mortgage...the most you'd hope to achieve would be 75% with rates in the region of 12%
As you know, houses take time to sell............

herbiesjp

In terms of figures and loans, you should be fine in getting the mortgage amount agreed.

As stated by V22, it will depend on the current state of your credit file as to whether you will be eligible for any deals.

At that 90% level, you will not have many options available, and the ones that are, will not be the most competitive - having said that, if they get you to were you want to be, then it might be a price worth paying.

Have you got an up to date copy of your credit files?

Just saw your signature:are your debts £16686? Is that costing you £328pm, or are these something else?

Brassic

Thank you for the replies.

Firstly, we did have a ccj, but that was over 6 years ago now. No missed payments for a number of years either, probably none in the last 6 years but I'd need to double check to be 100% sure. Debt is currently at 16k, 4k of that is with Egg, the rest of it is with very kind family members.

I haven't looked at our credit files for a little while now, but it was looking good a year or so ago.

Will be looking into putting ours on the market tomorrow.

Ells

getmore4less

£133k 16y @ 5% you pay about £6k off in a year

What term and amount rate was your original deal(to get a better estimate of the ammount outstanding.

What will you move onto in May

Is the deal portable, does the curent lender offer decent top up deals.

Assuming you can cover all costs

(170-127)/239 18% deposit 82% LTV £198k so around 3 joint salary multiple

A few deals around 85% LTV more if you can hit 80% with a good price on yours and low accepted offer on the new one.

VIGILANT22

I think you need first need to check if you qualify for a mortgage before putting the house on the market...as it sounds like your credit file is still affected...

http://forums.moneysavingexpert.com/showthread.html?p=23308423&highlight=#post23308423

Brassic

This was settled in January. It's something which happened when hubbys business went to pot back in early 2003, it's been paid without fail since then, and settled January. Will it still have a negative impact?

VIGILANT22

You need to check your credit file...you can do this online at equifax/experian/call credit, just follow instructions for free report...I would say with your history and the way the current lending criteria is (very tight) you really need to speak to an experienced mortgage advisor as to the likelyhood of obtaining a mortgage.......The one you spoke to "I phoned a Mortgage broker today and he said that until I had an offer accepted, he couldn't give me any figures"....is talking thru his/her head........Imagine if someone made an offer on your house and they had no idea if they could raise finance....!!

herbiesjp

Agree with V22 about the broker.

There is no point in putting in any offers and wasting anyone's time, unless you know you can get the mortgage agreed in the first instance - which based on your circumstances is even more important to find out.

So get in contact with a different broker armed with an up to date copy of both your credit files.

Brassic

Thanks guys, the mortgage broker was London and County, so I was a bit disappointed. I've contacted another one now who has been really helpful, and having gone through the figures with him it seems to be looking quite positive. He's asked for our credit files which I've sent him (well mine so far - nothing worrying, lots of nice things sayiing settled, just got to remember the password now for hubbys) so fingers crossed!