Will I be approved? First time buyer

f1rsttimebuyer_2

Thanks for taking the time to read my post.

I know my question might be like asking "how long is a piece of string", but I thought I'd ask anyway for a rough idea.

My criteria is as follows:

22 Years old

Employed in same job for 4 years

£18,000 basic salary, can prove £27,500 income after bonus and overtime on last P60.

Banked with HSBC for 15 years.

Lived at same address for 12 years, on electoral roll for 2 years.

Credit history shows all clean history with HSBC and £1000 overdraft account. (usually about £750 overdrawn, within limit, never over)

2 closed accounts with NatWest, all clean.

Vanquis credit card, opened 8 months ago, all clean. Still open with £500 limit, usually about 50% of limit used.

Two separate loans for £1500, both paid off in full, with no missed payments.

Vodafone contract for 3 years, no missed payments.

Here's the issue:

I opened a credit card with Barclaycard when I first turned 18.

In the first year (2007) I went four months without making any payments, shown on my credit report status as: 1,2,3,4, before paying my account up to date, returning to a "0" status.

Over the following two years (2008 & 2009) I missed a total of 8 payments on the credit card, non of these were subsequent, therefore they all show as separate "1" status' on the report and no "2" status'.

This account was closed down in December 2009 after being paid in full.

Looking at the lending criteria of the post office, it states the following:

For last 3 years:
no mortgage/rent/loan arrears
maximum 2 consecutive missed payments on credit/store cards
maximum 1 CCJ to £250, not in the last 12 months
communications/mail order arrears ignored unless scale/frequency is a cause for concern

I meet these conditions, as it's been three years since I missed two consecutive payments on my Barclaycard.

Also, on the Leeds BS lending criteria, it states the following:


• No arrears on any credit agreement (e.g. credit / store cards, mail order credit and mobile
phone contracts) within the last year, where the cumulative amount overdue at any point
reached more than one monthly payment;
• No arrears on any credit agreement (e.g. credit / store cards, mail order credit and mobile
phone contracts) within the last three years, where the cumulative amount overdue at any
point reached more than two monthly payments;

Again, I meet this criteria, as I've missed no payments in the last year and I've not missed any two consecutive payments in the last three years.

Although I meet the lending criteria on both these websites, I'm sceptical to make an application.

Can anyone hazard a guess as to whether or not I would be successful in receiving a mortgage, and if so, which companies I would be best making an application to?

I understand I'll be best going to a whole of market broker, but thought I'd seek a bit of advice from you guys first.

I'm looking to secure a mortgage on a £75,000 property, with a £15,000 deposit. Ideally over 35 years, but could pay over 25 years if this is going to be more likely to be approved.

Thanks in advance.

GMS

f1rsttimebuyer wrote: »

Thanks for taking the time to read my post.

I know my question might be like asking "how long is a piece of string", but I thought I'd ask anyway for a rough idea.

My criteria is as follows:

22 Years old

Employed in same job for 4 years

£18,000 basic salary, can prove £27,500 income after bonus and overtime on last P60.

Banked with HSBC for 15 years.

Lived at same address for 12 years, on electoral roll for 2 years.

Credit history shows all clean history with HSBC and £1000 overdraft account. (usually about £750 overdrawn, within limit, never over)

2 closed accounts with NatWest, all clean.

Vanquis credit card, opened 8 months ago, all clean. Still open with £500 limit, usually about 50% of limit used.

Two separate loans for £1500, both paid off in full, with no missed payments.

Vodafone contract for 3 years, no missed payments.

Here's the issue:

I opened a credit card with Barclaycard when I first turned 18.

In the first year (2007) I went four months without making any payments, shown on my credit report status as: 1,2,3,4, before paying my account up to date, returning to a "0" status.

Over the following two years (2008 & 2009) I missed a total of 8 payments on the credit card, non of these were subsequent, therefore they all show as separate "1" status' on the report and no "2" status'.

This account was closed down in December 2009 after being paid in full.

Looking at the lending criteria of the post office, it states the following:

For last 3 years:
no mortgage/rent/loan arrears
maximum 2 consecutive missed payments on credit/store cards
maximum 1 CCJ to £250, not in the last 12 months
communications/mail order arrears ignored unless scale/frequency is a cause for concern

I meet these conditions, as it's been three years since I missed two consecutive payments on my Barclaycard.

Also, on the Leeds BS lending criteria, it states the following:


• No arrears on any credit agreement (e.g. credit / store cards, mail order credit and mobile
phone contracts) within the last year, where the cumulative amount overdue at any point
reached more than one monthly payment;
• No arrears on any credit agreement (e.g. credit / store cards, mail order credit and mobile
phone contracts) within the last three years, where the cumulative amount overdue at any
point reached more than two monthly payments;

Again, I meet this criteria, as I've missed no payments in the last year and I've not missed any two consecutive payments in the last three years.

Although I meet the lending criteria on both these websites, I'm sceptical to make an application.

Can anyone hazard a guess as to whether or not I would be successful in receiving a mortgage, and if so, which companies I would be best making an application to?

I understand I'll be best going to a whole of market broker, but thought I'd seek a bit of advice from you guys first.

I'm looking to secure a mortgage on a £75,000 property, with a £15,000 deposit. Ideally over 35 years, but could pay over 25 years if this is going to be more likely to be approved.

Thanks in advance.

Meeting critria is one thing, passing the lender's credit scoring is another.

There may well be a lender for you, not necessarily from the lender's you have looked at.

Speaking to a good broker would help you a lot

f1rsttimebuyer_2

Thanks for your response.

Are there any experienced brokers on these forums that would have a good idea of which companies are most likely to approve me, if any?

GMS

f1rsttimebuyer wrote: »

Thanks for your response.

Are there any experienced brokers on these forums that would have a good idea of which companies are most likely to approve me, if any?

Without a full factfind a decent broker would not comment as to who would accept you. It would be unfair on you especially.

f1rsttimebuyer_2

Not even a guess?

I've heard post office and Leeds BS are a little more relaxed than others at the moment, is there any truth in that?

betmunch

f1rsttimebuyer wrote: »

Not even a guess?

Love it!

There would be no guessing going on. You wont get anyone qualified on here giving you a lenders name for fear of it being taken as advice which they are liable for.

Like GMS said, got to do a full factfind before picking a lender for a client.

ALARMSCAMREPORTER

Hi new to this and hope I've found the correct place. Can anyone answer a qeurie for me is poss. Me and my brother inherit a house when my gran dies or moves. She has life rent on property and then I will have my half of sale. Hopefully this makes sense.My question is Is there any company who would overlook my average credit rating or can I use the inherited house as a type of security

GMS

f1rsttimebuyer wrote: »

Not even a guess?

I've heard post office and Leeds BS are a little more relaxed than others at the moment, is there any truth in that?

If I were to 'guess' and suggested that Bank of Bloggs would do you a mortgage at 2% which turned out to be not the case I would be acting in a unfair and unprofessional manner.

I do not know enough about your situation to hazard a guess, and if somebody told me I could get a rate which turned out to not be possible I would be quite annoyed.

Credit scoring is constantly changing from one day to the next for lenders so what would look likely one day may not apply the next day.

Good luck with your application

g_attrill

One thing I believe any lender might be concerned about is you are always living in your overdraft - if at all possible reduce this so you are within your actual balance and never go overdrawn.

jamesd

f1rsttimebuyer wrote: »

£1000 overdraft account. (usually about £750 overdrawn, within limit, never over) ... a £15,000 deposit

Stop that immediately. It's taken as a sign of poor ability to manage money. Use some of the deposit money to do it. I expect that this will be the biggest negative factor if it's more recent than the last missed payment.

Ensure that there's nothing on your bank statements like betting site use for the three months before applying and the time between applying and completing the purchase. No overdraft use either. If you're going to apply for a loan for furniture or whatever do that after the purchase completes, not before. Lenders can and do check what happens between accepting and completion.

jamesd

ALARMSCAMREPORTER wrote: »

Hi new to this and hope I've found the correct place. Can anyone answer a qeurie for me is poss. Me and my brother inherit a house when my gran dies or moves. She has life rent on property and then I will have my half of sale. Hopefully this makes sense.My question is Is there any company who would overlook my average credit rating or can I use the inherited house as a type of security

You should start a new topic. You'll need to say who currently owns the house today. It appears that it might be a life interest trust for her and you two may have inherited it originally and may be the owners. In that case if would be possible to take out a mortgage on it if all owners agree.

A mortgage broker could assist in sorting out what is possible.

If she owns it, you can't get a loan secured on property that someone else owns and could leave to anyone they want to leave it to.