First Time Buyer Needs Advice on Credit History 26 January 2011 at 11:49PM in Mortgages & Endowments 11 replies 1.3K views

TeaAndToast_2

I have finished university 3 years now. I missed 2 x payments in 2007, and 5 in 2006 due to the bills going to my parents address while I lived at university. I also never heard about credit history, thus my lack of interest in sorting the issue. Anyhow... what would be my chance of getting a mortgage, considering me earning 24,000 and my meticulous partners history on 17,000? We can get around 150,00 on paper/computer checks, but is my history just too bad?


kind regards

bodmil

Any deposit?

TeaAndToast_2

No deposit required. I do have 15k though. It works by the developer pays the 5% for you 7500 in our case, then he puts 15k into another account to cover falls in the market. So it basically gets people on the market with his houses, and the 15k is to cover the bank so they don't get hit if house prices fall and we go into negative equity. The bank would then reduce our mortgage. Although if house prices go up within 5 years we have to pay deposit back; which they will. Its a very good deal I don't want to miss, but don't want to get her hopes up and get turned down. We have been renting now 3 years and managing very well.


kind regards

GMS

You will only have a 5% deposit which is not your own resources so will not be enough.

Builders are lovely covering all angles for you, or is it a way to sell an overpriced house? Call me cynical but the latter is correct.

Save a deposit, minimum 10% and you may have a chance

Soot2006

; which they will.

Nothing wrong with a good dose of optimism!
... Is it a New Build?

Son_of_a_beesting

TeaAndToast wrote: »

No deposit required. I do have 15k though. It works by the developer pays the 5% for you 7500 in our case, then he puts 15k into another account to cover falls in the market. So it basically gets people on the market with his houses, and the 15k is to cover the bank so they don't get hit if house prices fall and we go into negative equity. The bank would then reduce our mortgage. Although if house prices go up within 5 years we have to pay deposit back; which they will. Its a very good deal I don't want to miss, but don't want to get her hopes up and get turned down. We have been renting now 3 years and managing very well.


kind regards

If it seems to good to be true, it is.

Especially considering the way the housing market is in at the moment I would be extremely wary of this. He puts £15k into a different bank account (not yours I presume), which the bank will take as your money to help with neg. eq.?

I would talk to a independent financial advisor about this (not one that works for the builder)

herbiesjp

It is not the credit history that I would be worried about, it is the deposit scenario.

Gert a copy of both your credit files from Equifax or Experian.

That way when you speak to a whole of market adviser, not the builder, they will give you a true reflection of what you can do in your situation.

TeaAndToast_2

Soot2006 wrote: »

Nothing wrong with a good dose of optimism!
... Is it a New Build?

Yes its a new build and the houses are of great quality. I have lived in 5 of this builders houses with parents and renting and all are of good quality.

TeaAndToast_2

GMS wrote: »

You will only have a 5% deposit which is not your own resources so will not be enough.

Builders are lovely covering all angles for you, or is it a way to sell an overpriced house? Call me cynical but the latter is correct.

Save a deposit, minimum 10% and you may have a chance

I have 15k saved.

TeaAndToast_2

Son_of_a_beesting wrote: »

If it seems to good to be true, it is.

Especially considering the way the housing market is in at the moment I would be extremely wary of this. He puts £15k into a different bank account (not yours I presume), which the bank will take as your money to help with neg. eq.?

I would talk to a independent financial advisor about this (not one that works for the builder)

I have done my research and spoke to a broker who said this was best for me. The 15k goes into the banks account obviously for security reasons. I cannot post a link but google ulster bank momentum mortgage, and the house is at fraserhouses.com (A1 TYPE). I have taken the plunge and made an appointment for 2:30 pm, as I need to know now what my state is as our rental property is up at very start of April. Wish me luck.

TeaAndToast_2

herbiesjp wrote: »

It is not the credit history that I would be worried about, it is the deposit scenario.

Gert a copy of both your credit files from Equifax or Experian.

That way when you speak to a whole of market adviser, not the builder, they will give you a true reflection of what you can do in your situation.

Broker said I was good for 160,000, or closer to that region than the 150,000 I'm looking.