I'm Well Off but have poor Credit Record!

thequant

OK heres my situations, I Have 2 defaults which are due to come off soon (may have already gone, so Im in process of getting my Credit Record).

I Have just recently become free debt :j:j:j

by paying off £6k in 6 months! which means I am now able put away £1k a month.

My wage is £45k per year and have some money coming to me soon which I reckon will put me in the position of having a £20k deposit by the end of the year.

My Questions are

1) Will I get a mortgage ?

2) If so how much upto ?

3) what sort of rates?

I'm not looking for exact answers,just opinions and typical figures.

Im also toying with the idea of getting shared equity property in case I cant get a large mortgage, what are my chances of this. A place im looking at need £50k for 25% share, which means my deposit will be 40% of this.

herbiesjp

Simple answers:

1) Yes you can - but will depend on the depsoit you have (20-25% will be needed if defaults still show) otherwise you could get away with a 10% deposit

2) Rule of thumb - 4 times your income

3) Rates will again depend on whether or not the CCJs affect any application, and also what deposit you have.

You should get a copy of your credit file to see what your up to date credit file looks like.

getmore4less

You should be able to get a mortgage,

The more you save the bigger the deposit

The cheaper the place the better the LTV
The better the LTV the cheaper the rate.


Best rates are around 60%LTV to thats a £30k mortgage
max lending is around 4* salary so thats £180k

Somewhere in between.

Might be worth thinking about a year saving rather than 6months.
What are your housing costs now, that can be a significant factor.


On any sort of shared scheme you need an exit plan.

So check resale conditions carefully(many are restrictive)

To buy the rest you need to be able to afford it in the first place of have an increase in income.

Only buy less than you can afford if the rent on the rest is lower than renting the money(bigger mortgage)

thequant

herbiesjp wrote: »

Simple answers:

1) Yes you can - but will depend on the depsoit you have (20-25% will be needed if defaults still show) otherwise you could get away with a 10% deposit

2) Rule of thumb - 4 times your income

3) Rates will again depend on whether or not the CCJs affect any application, and also what deposit you have.

You should get a copy of your credit file to see what your up to date credit file looks like.

I have no CCJ'sjust two defaults approx 6 years old (so need to check credit record ASAP)

if the defaults are still there,so I'll be able to get a mortgage ? If I am,will the interest be punitive ? even if the deposit is a large enough proportion to make it effectively risk free for the bank ?

herbiesjp

With defaults still there, and high enough deposit you will still be able to get a mortgage.

Rates off the top of my head would be around 5% - so better than a "clean" mortgage applicant looking for say a 90% mortgage.