First time buyers - will we get a mortgage??

Danni.135

Hi there,

Myself and my partner are looking for buy in the new year under a shared equity programme.

My credit file, is ok, no defaults, a few late payments -all up to date. His credit file isn't so great as he has 1 default from a few years ago, but everything else is fine.

We both get decent bonus' in December that we will be putting towards our deposit savings, and we should have about £9k which is more than required under the scheme in Scotland (the developers we are currently talking to are stating that no deposit will be required).

I am worried that we will be turned down for a mortgage...do people get mortgages with less than average credit files....??

Just looking for some general advice before we start looking in January.

Thanks,

Danni

beecher2

You'd certainly have more options with a healthier deposit. I think only certain lenders deal with shared equity. Best idea would be to find a mortgage adviser so as you are not relying on the developer for advice on your options.

Danni.135

Thanks for your reply. We will be seeking professional advice in the new year.

We would only be requiring a mortgage of around £75k, so we would have 12% saved up - I know natwest require only 5% on their shared equity option.

I was just looking for advice on the chance we would be accepted with his default.

Thanks again,

BadgerFace_2

I'm in the process of trying to do this, and can tell you that whilst they may advertise no deposit, it's not true, you still need 5% for the mortgage company. Halifax and Nationwide are your best (only) options.

Also, DO NOT let the builder tell you they won't do deals, because of the shared equity scheme. It is not true, we found a few who wouldn't but quickly started negotiating when we went to walk away!

Danni.135

Thanks for the information, very helpful.

We've been in talks with a developer for a while and I know they're chomping at the bit to do a dela with us. It's just the whole mortgage stress that's worrying me. Don't want to rent for another 5 years or so as it's just money down the drain.

We've been advised no deposit with Clydesdale Bank as a referral from the developer so I'll see how things go with that, not building my hopes up though. I'm happy to put every penny I have towards it if it means no more renting though!

tickledpink1984

Hi Danni my partner and I are in a similar position that you were in and in the process of finding out about mortgages on the LIFT scheme. How did you get on with obtaining your mortgage?

blueberrypie

Danni.135 wrote: »

We've been in talks with a developer for a while and I know they're chomping at the bit to do a dela with us. It's just the whole mortgage stress that's worrying me. Don't want to rent for another 5 years or so as it's just money down the drain.

It is no more money down the drain than your mortgage interest will be. Your rent puts a roof over your head. So does your mortgage payment - and while your mortgage *might* also act as an investment, you will also have other costs that don't apply when renting, such as maintenance, repairs, replacement of heating systems, etc.

Very often when people think of renting as "dead money", it makes them desperate to buy - and as a result, they often do not make good decisions about what to buy, and how.

rich225

love what that last person jus said