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First Time Buyer Advice

Me and my partner are about to apply for a mortgage in principle. We have £35,000 deposit and we are going after a house that is on the market for £125,000, but we are hopeful we will be able to get the house for around £120,000 - £122,000.

My partner has a excellent credit history, mine is okay, apart from one thing, just under three years ago I missed a number of payments on a hire purchase item. The item was settled in April 2008, so I'm worried that this will prevent me getting the mortgage.

Am I worrying for no reason?

Comments

  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    borrowing £90k ish under 75% LTV might creep uner 70%

    Plenty of option with that

    Income multiple?
  • Vortex566
    Vortex566 Posts: 47 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    I'm on £19,451 and my partner is on £17000, hopefully that is what you wanted to know? Thank you in advance.
  • Wh05apk
    Wh05apk Posts: 2,938 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    With a sizeable deposit, the credit scoring will be less harsh, so provided the missed payments were not too severe, and everything has been perfect since then, shouldn't be too difficult.

    As getmore says, try to get under 70% ltv for better rates.
    I am a mortgage adviser.
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Vortex566
    Vortex566 Posts: 47 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    I've found out I missed four payments in 2007, but the debt is now settled. When will this go from my credit record? I've got another question: When applying for a mortgage in principle how quick will we get an answer?
  • SilverSix
    SilverSix Posts: 284 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Vortex566 wrote: »
    When applying for a mortgage in principle how quick will we get an answer?

    When I went in to discuss my options and have a MIP certificate I had it then and there. Though I'm a FTB with a large deposit and a good credit history.

    I think it's a case of either being approved then and there for X amount and then deciding ,in principle, how much you want and then they can print off an agreement. This amount can be changed by yourself before the application is submitted. If your history and situation is complicated then it's a case of how long is a piece of string I'm afraid.
  • Vortex566
    Vortex566 Posts: 47 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Okay thanks, we have a large deposit £35,000 for a £122,000 mortgage, so I'm hoping we won't have any major problems. Will just have to keep my fingers crossed! Wednesday can not come soon enough....
  • Vortex566
    Vortex566 Posts: 47 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Sorry yes, so we will be getting a mortgage for around £87,000 hopefully that will work in my favour!
  • Vortex566
    Vortex566 Posts: 47 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    We got the AIP from Santander which is one step towards getting a mortgage. To our shock we came back with an A rating from Santander which is good news right?
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