Please advice me!

juliedoris

Ok so I am looking for advice...
My partner and I are living in a house that I used to own (long story!) and that we now rent from my brother.
my brother want to sell the property, valued at around 210k and we would really like to buy it.

Our concern is this:
-We both have poor credit scores
-My partner is self employed
-I have a low income

On the the plus side:
-We have 50k poss 60k deposit
-My partner has 3 years chartered accountants reports
-Our joint income is 40K
-My father is prepared to act as guarantor on the loan

Please can anyone advise me on who to approach for a mortgage or if we are being totally unrealistic!

GMS

Why is your credit poor?
CCJ's?
Defaults?
Missed payments?
Bankruptcy/IVA?

kingstreet

How much do you feel would be affordable each month? A 25 year mortgage for £150k @ 4% is going to set you back £800 per month, plus your associated costs like insurance, then your living expenses need to be considered.

Sit down and work out a budget for your outgoings to make sure you can afford what you plan to do.

The mortgage is between 3.5 and 4x your joint incomes and with a loan to value of 71%, you should find the amount obtainable at high street rates.

You don't mention your specific credit problems - how severe or how long ago. I suggest you talk to an independent broker who will probably suggest you obtain your statutory credit files so they know exactly what they are going to be up against. It may be worth you getting the files now before you make an appointment to see a broker.

juliedoris

Hi, and thanks both.
I have obtained both of our credit reports.
My score appears to be low due to historical late payments to credit cards - not in the last 12 months as we have now cleared these.
My partners is also probably down to late payments on a mobile phone bill during the last 12months. I have now set up a DD on this.
I have worked out our budget and reduced all of our outgoings where possible. We can afford to pay up to £800 per month
My concern is finding a lender that will loan to us

GMS

Ignore any score on your credit report. Until the credit reference agency start lending money it is useless.

Check the data contained within it. Make sure it is correct.

Any of the following:

CCJ's?
Defaults?
Missed payments?
Bankruptcy/IVA?

May be a lender for you but need more info

juliedoris

OK - there are 2 default accounts on my repost - i have contacted both companies as they are old debt's. 1 for £17 and one for £47. both companies claim to have no record of me or the debt! how can i clear the default...?

GMS

When were they put on?

The company who put the defaults on can have them removed if they have been done in error I believe.

If the defaults were over 3 years ago there may well be options for you anyway.

Conrad

OP mentions late payments on phone and other items. This will trigger alarm bells with any lender as the client has demonstrated a propensity to pay things late - so why not pay the mortgage late.

It is unlikely this will be accepted unless you borrow under 60% and even then it would be sujject to 3 - 6 months clean Bank statement activity.

You just cant go through life paying stuff late and then expect to be given a large mortgage to play with.
You would not accept your boss paying your wages late, so why pay your own commitments late?