Ftb: 50% deposit, poor credit.

iPhoto

Hi Guys,

My wife is going to be applying for a mortgage shortly, First Time Buyer.

She earns:

£30K from her regular 9-5
£80K from my company

We have £75K cash deposit, the house we are purchasing is valued at £180K, the seller is letting it go for £145K. We therefore need a mortgage of £70K.

My wife has 4 or 5 defaults to various places (Argos, Next, Bank of Scotland - purely down to poor management, not affordability - no CCJ's as far as I can tell). The last default was maybe 6 months ago, we are up to date with repayment schedules.

Her CREDITEXPERT score is "fair" and around the 750 mark.

Ideally, there would be a minimal early repayment fee - we are planning on clearing the mortgage before the end of the year using the money I get from the sale of a property I own. It's not yet on market, and I move into the new place August 1st, hence the need for a small mortgage.

Now I know we can afford this, but I am worried that her credit score is going to make this impossible in the current climate.

Anyone know how this is likely to play out? We have a meeting with Mortgage Brokers on TUE morning, however, I'm impatient

Gary.

hwalkerh

Can you just get it based on your income and in your name?
i guess that would mean having 3 years accounts for your business

bullybear

Hi

If you can pay off all the bad debut u got and that may help ure case

look at coop 3.99 5y fix cost £999

or

take mortage in your name

dimbo61

Check the ERC with the COOP fix as you dont want to pay 3% in 12 months!

LilacPixie

do you mean defaults as in passed to a debt recovery agency or late payments?

iPhoto

hwalkerh wrote: »

Can you just get it based on your income and in your name?
i guess that would mean having 3 years accounts for your business

Afraid not, I am not earning any more on paper. I got fed up with the tax man and retired at 30 (no joke).

Gary.

iPhoto

LilacPixie wrote: »

do you mean defaults as in passed to a debt recovery agency or late payments?

Two defaults, both passed to debt recovery. Grand total of £1,500.

Gary.

Thrugelmir

£75k deposit yet several defaults, and up to date on repayment schedules suggests there is far more to this than you've said.

iPhoto

Thrugelmir wrote: »

£75k deposit yet several defaults, and up to date on repayment schedules suggests there is far more to this than you've said.

What can I say? The only thing I (we) are guilty of is absolutely poor management of our funds. I have an absolute hatrid of Direct Debits due to bad memories from when I earned £100 a week as a chef all those years ago. As such, I have always refused point blank to setup direct debit schemes. Couple that with an inability to organise paperwork, and keep on top of the various bills, and you can very quickly find yourself with a few !!!!ed off creditors.

FOUR defaults over four years, two my fault, two my wifes.

We are still bringing in around £7K a month, of which at least £3K has to go on various bills. The biggest being our existing mortgage, the next is car insurance for four vehicles. Our utilities then account for about £400, followed by Council tax which is close to £300.

For the record, our house is not yet on the market. My wife is about to give birth (8 weeks to go!) and we have decided to adapt our lifestyle at the last minute. We have a chance to get a house we have fallen in love with, and be mortgage / debt free, and the ONLY thing standing in our way is either a mortgage of £75K or our existing property selling. If we can sell quickly for a price close to market valuation, we will not need any mortgage. The trouble is, we need to complete the purchase of the new house by August 1st, not leaving any time at all for me to sell this place....

Anyway, it's a simple situation - we are crap at organising our bills, but fairly wealthy.....banks appear to be terrified as a result :mad:

G.

VT82

I think you'll get a mortgage from someone at under 50% LTV if the building is of a standard construction, with a fair credit score and no CCjs. What do you mean when you say she earns '£80K from (your) company' though? I take it this doesn't mean she has payslips?

Thrugelmir

iPhoto wrote: »

Anyway, it's a simple situation - we are crap at organising our bills, but fairly wealthy.....banks appear to be terrified as a result :mad:

Rather than get cross with the banks, give yourself a kick up the backside. With £75k in savings why the need to have Argos and Next accounts at all ?

The banks aren't terrified. Its more a case that there are better borrowers to lend to.