40%+ LTV but average credit rating - mortgage chances?

Alibear

Hi, I'm brand new to this mortgage lark, so hope I don't sound too stupid!

Basically, by bf and I are looking to buy for the first time. But he isn't in full-time, regular employment (his regular income is from benefits and sponsorship money), only I am. Money isn't a problem. The large deposit is coming from him and he can easily contribute to the repayments.

I earn an ok wage but have had a bad credit rating in the past, though have been good over the past year-18 months or so. Would anyone know whether I have a decent chance of getting a mortgage on my own with the large deposit, or could the income from my bf be taken into account? I'm just after a bit of friendly advice as I don't want to get rejected as obviously that will affect future applications. Any advice on how to put myself in good stead before applying would also be helpful (I've read Martin's section on this website too) Thanks!

beecher2

You can't count your boyfriend's income, and it probably depends just how bad your credit is. Could you get the mortgage you need on 3 or 4 times your salary? Go to see an adviser to go through your options.

Alibear

Thanks for that beecher. I didn't think I'd be able to count his income. I don't have any defaults, just a (quite a!) few late credit card/loan payments, but as I said, I've sorted this out over the past year or so, as well as getting rid of unused credit. We have the option of putting a larger deposit together, which would obv mean we'd only need a smaller mortgage. But it's whether property is a good place to put one's cash at the moment, which is a different discussion entirely!

herbiesjp

You have not posted any figures, so difficult to see if this would work on your salary alone.

House price, mortgage needed, deposit, salary, any loans/cards/debts outstanding - these would be needed.

Alibear

herbiesjp wrote: »

You have not posted any figures, so difficult to see if this would work on your salary alone.

House price, mortgage needed, deposit, salary, any loans/cards/debts outstanding - these would be needed.

Sorry, at work so couldn't stay on for too long...

Ok:
We have minimum £80k deposit, we'd like our budget to be £150-£200k

My salary is £28k

I'm paying £127 pcm on an outstanding unsecured load (finishing early next year), other outstanding debts are around £2k (overdraft, credit card).

As I said before, we have the option to increase the deposit (potentially to over £100k) but it's just whether the cash would be better off in property or staying where it is at the moment.

herbiesjp

This looks like it should be able to progress.

However it will depend on what your credit file looks like - have you got an up to date copy for both of you?

Once you have that printed off, get in contact with a good whole of market adviser, and let them see whether those late payments will limit which lenders/rates available to you.

Alibear

herbiesjp wrote: »

This looks like it should be able to progress.

However it will depend on what your credit file looks like - have you got an up to date copy for both of you?

Once you have that printed off, get in contact with a good whole of market adviser, and let them see whether those late payments will limit which lenders/rates available to you.

Thanks for the advice. I looked at my file on Equifax (which I bought for £2) this afternoon and couldn't see any late payments over the past 18 months. My boyfriend's credit file should be fine, no debt, no overdraft and a credit card he pays in full every month. Plus regular money (disability benefits and sport sponsorship grants) going into his current account. I'm just not sure he can be included on the mortgage because he's not in 'regular employment'...

herbiesjp

He can be included - and seeing as he is paying the deposit I think he should be

Lenders look back over a longer period of time - different lenders use different timescales, but depending on what is there, will give a broker a good idea as to the likelihood of getting the mortgage agreed.