FTB Help Request:

krisswilliams

Hi.

Just would like some clarity really in regards to our situation.

Myself 28, Partner 23 and Child 2 are living with parents whilst we save for a deposit and we believe we are nearly ready to start looking, well in the next few months.

We are looking at properties around the £110k mark and would like a 95% mortgage if possible.

Our joint income is £28k a year excluding Tax Credits etc.

Both been on electoral roll at current place for over 3 years.

My partners credit file is clean but I have two defaults, one for £107 which is satisfied which should drop off my credit report 10.01.2011 as per the 6 years and another for £568 which should drop off 09.04.2011 again as per the 6 years. Stupid early years and not paying bills!!

We have approximately £10k at the moment in savings.

Where we are living now we have kind of outlived our stay and need to move on, what's the chances of us getting a mortgage?

Any other information needed please say.

Any information appreciated. Thanks!!

Littlemadam83

I can only talk from my personal experience (is currently going through now).

We were declined all mortgages that needed a 10% deposit. We had savings, and only a few late payments (1 within last year), so were declined.

We were able however to get a mortgage with a deposit of 15%. I know banks dont like defaults at all, so after the last one clears you should be good to go if it is within your affordability taking into account your child.

Goodluck xxx

krisswilliams

Thanks littlemadam83, 15% is quite alot, and dont see how we can save it with our situation at home, is it worth still trying an 'all of market' broker after the defaults have cleared?

BadgerFace_2

I know the defaults will technically 'drop' off your credit report, but that won't automatically mean you have very good credit records, which is what you'll need to get a 95% mortgage (the interest rates of which a very high).

pinkarsenalprincess

Another one where I can only talk from experience. Joint income of £40K, no defaults/good credit history etc but couldn't get a mortgage without 25% deposit.

krisswilliams

pinkarsenalprincess wrote: »

Another one where I can only talk from experience. Joint income of £40K, no defaults/good credit history etc but couldn't get a mortgage without 25% deposit.

Was that after seeing an 'all of market' broker?

pinkarsenalprincess

krisswilliams wrote: »

Was that after seeing an 'all of market' broker?

Yes, although we eventually went down the route of shared ownership which reduces options even further. Even then we needed 25% deposit despite all the advertising claiming only 5% being needed.

krisswilliams

pinkarsenalprincess wrote: »

Yes, although we eventually went down the route of shared ownership which reduces options even further. Even then we needed 25% deposit despite all the advertising claiming only 5% being needed.

Blimey. Doesn't look promising at all for FTB... Not good

somethingcorporate

krisswilliams wrote: »

Blimey. Doesn't look promising at all for FTB... Not good

Keep saving hard, you should be well over 10% by the time the defaults drop off your credit file so sit it out for a few months and try when you are in a slightly better position.

krisswilliams

Thanks for the comments. Much appreciated ;-)

krisswilliams

Just an update really as I seen someone posted some form of success story on being accepted for a mortgage...

Anyways found a property we liked for £122k and got it down to £118k, then got an 'all of market broker' who managed to get us a deal with Natwest with a 10% deposit, fixed for 2 years at 5.99% which we know is high but it means were on the ladder...

Had an email this morning saying the valuation was being arranged and subject to the property worth its value then the loan value will be accepted.

When thats done we have a surveyor in place to do the necessarys...

Exchange of contracts are being wrote up also as I type...

How long would it normally take after that to be given a move in date etc?

Thanks.