First time buyer - 100% Mortgage - advice needed

Editor123

Hello everyone - I wonder if you could offer me some advice...

I have finally finished education and have been in my new job for 4 months and want to look into getting on the property ladder...

I currently earn £22.5k

I have been working very hard to settle my debts - and I have done well so far - but I still have the following outstanding:

£10k in debt from student loan
£1800 credit cards
£5000 overdrafts

I have NO deposit for the mortgage

I carried out a credit scoring the other day through Experian and scored 750/1000

I am worried that if I turn up at the bank without knowing all the facts then I will have a declined mortgage offer on my credit rating - and will go round and round in circles. So, I would like to be able to pre-empt their answer if at all possible!

My questions are:

1. Is my credit scoring actually good enough to get a mortgage?

2. Is my credit rating good enough to transfer my credit cards to a 0% balance transfer credit card?

3. Should I do this before of after my mortgage application?

4. Am I able to transfer my outstanding overdrafts onto a 0% credit card as well?

4. Is there anything else that I can do to increase my chances of getting a mortgage?

5. I would preferably like a Buy-to-let mortgage - are these available for first time buys with 100% mortgages?

Many thanks for your help guys!

UK007BullDog

Oh boy,

BTL mortgages you need to put down 15% deposit or more. Rental income has to cover up to 130% of the mortgage payment (interest only part).

With your income you are looking at roughly £80,000.

The high income multiples are for higher earners.

With your income and the debts you have Northern Rock might look at an enhanced (larger) amount if you go longer term fixed like a 5 yr fixed.

But if I were you I would concentrate on that overdraft first of all and get rid of it and the other debts. Using a long term 0% deal and then tarting until its all gone is best then save up a deposit of at least 10% to get you into a property.

tomstickland

1. Is my credit scoring actually good enough to get a mortgage?
Yes it probably is.

2. Is my credit rating good enough to transfer my credit cards to a 0% balance transfer credit card?
Fee free BTs are getting rarer. Look on https://www.stoozing.com for info.

3. Should I do this before of after my mortgage application?
A few credit searches aren't going to wreck your rating.

4. Am I able to transfer my outstanding overdrafts onto a 0% credit card as well?
If you get an Egg Money card you can balance transfer from EM to Credit Card and also BT from any current acount to EM.

4. Is there anything else that I can do to increase my chances of getting a mortgage?
Pay off your debts.

5. I would preferably like a Buy-to-let mortgage - are these available for first time buys with 100% mortgages?
Why do you want a BTL?
Buy to live in.
100% mortgage is not optimum.
Best route is to pay off debts then save a deposit.

TEDDYRUKSPIN

As above, BTL is out of the question. 100% mortgages are still in as some banks offer this for graduates. Your credit rating will be ok as long as you never had the LETTER OF DEATH through the door, hence RED IN LETTERS.