First time buyer

PollyBanwell

Hello All,
I am a little new to the forum so please forgive me if all this has alrady been covered!

My boyfriend and I would like to buy our first property next year. We are both self employed, so do have not have regular earnings, but we have been renting a flat for over 3 years now never missing a payment so can obviously afford a monthly repayment.

My parents have offered us £20k towards a deposit. If we can raise another £15/20k would this be enough for a deposit? How hard is it REALLY to get a mortgage nowadays? I appreciate it is hareder than it was but with such a large deposit and proof of regular rent payments surely we would have to be considered?

Also, our credit rating is poor as my partner has never had a credit card and I've missed payments in the past.

Any advice would be gratefully received

Polly

beecher2

You need verified accounts, and the salary multiples need to stack up. How much is your income and how big would the mortgae be? Proof of regular rent payments aren't relevant really, and the missed payments will count against you. Get copies of your credit files and go to see a mortgage adviser to get advice on your options.

Simon11

Can you explain the "missed payments in the past"?

Otherwise you said "renting a flat for over 3 years now never missing a payment so can obviously afford a monthly repayment"

It can't be both, either have no problems with paying rent and other bills, or have you been paying rent but not paying other creditors?

Whats your average incomes per year, what value of the house you are looking for. Saving £15/20k in a year is a hard task, how do you expect to achieve this as you've had previous issues with paying bills and no sign of saving any money?

PollyBanwell

Thanks for your thoughts - doesn't look great does it?!

We earn between us about £25k a year so clearly low earners but we make enough to get by. I assume we go to an accountant to get our accounts verifed and need invoices etc? I looked at my credit rating on Experiean but didn't pay to sign up. If I did then could get copies I assume?

The fee free mortgage brokers - will they be happy to meet with us for free?

Many thanks
Polly

PollyBanwell

Hi Simon11

Thanks for your reply.

I had never thought about that before in terms of payments. I have missed card repayments in the past - but haven't done so for over a year now and it was only one card.

We are planning to ask his parents for any extra money for a deposit. HIs Mum works in the housing industry (mainly for new build estate companies) and is egear for us to get on the property ladder. She may even have an idea of any good deals on property

GMS

PollyBanwell wrote: »

Thanks for your thoughts - doesn't look great does it?!

We earn between us about £25k a year so clearly low earners but we make enough to get by. I assume we go to an accountant to get our accounts verifed and need invoices etc? I looked at my credit rating on Experiean but didn't pay to sign up. If I did then could get copies I assume?

The fee free mortgage brokers - will they be happy to meet with us for free?

Many thanks
Polly

Can you prove your earnings by way of tax returns to the Inland Revenue? You should request SA302 forms for each return.

How many years earnings can you prove?

You should go on to Experian and Equifax websites and buy a statutory report. They are £2 each.

Any problems with credit will go against you but depending on what they are there may be options. Without knowing how much you are looking for it is impossible to say.

I do initial consultations for free as do many other brokers. This is the best way for you to get an idea. You are not the squeaky clean clients lenders are looking for so HSBC and the likes would probably reject.

PollyBanwell

Thanks so much. I know we're not ideal for a mortgage

We live in London but aren't necesarily looking to buy there. I suppose we would need to borrow a total of £180-200K for a one bedroom flat. It's good to know there are people who offer free consultations. I just want to findout where we stand and what we would need to do to become more eligible. We can prove our earning and have self assesment forms etc. We both work in the entertainment industry - I'm an actor and he's a musician yet we both obviuosly have other "in between" jobs. He works as a waiter at Zizzis and I work in Customer services. So we do earn regular money but perhaps not enough for someone to trust us!!!

GMS

Borrowing 180-200k is not going to happen with earnings of 25k.

Take a 100k off and you might be in the ballpark.

If you have credit problems then you are looking at a minimum of 20% deposit, assuming your problems were minor enough for any acceptance.

Impossible to say without knowing your full circumstances. Have a chat with a 'Whole of Market' broker.

Conrad

PollyBanwell wrote: »

Thanks for your thoughts - doesn't look great does it?!

We earn between us about £25k a year so clearly low earners but we make enough to get by. I assume we go to an accountant to get our accounts verifed and need invoices etc? I looked at my credit rating on Experiean but didn't pay to sign up. If I did then could get copies I assume?

The fee free mortgage brokers - will they be happy to meet with us for free?

Many thanks
Polly

A book keeper will do, you do not need an Accountant for every lender. There are some who take just 1 years accounts too.
I think the price range your'e looking to is too high nthough.