Mortgage - First time buyer query

giggsy07

Dear all,

I am hoping for some advice from anyone in the know about mortgages.

My girlfriend and I are currently both 25 and renting a 1 bed flat in the city centre for about £600 per month - £800 including all bills and council tax, etc.

We have a combined salary income going forward of £64,750 and if we were to live rent free then we would have minimal outgoings going forward other than car £191, insurance £70, mobile £60 between us and some other bits and bobs about £50 per month. All in all this is about £370 outgoings going forward.

We currently have a deposit saved of £16,000 and plan to save £1,200 per month between us for the next 7 months, i.e. to the end of 2011. This would give us a total deposit of roughly £24,000.

We are looking at 2 bed terrace style houses (not new) in our preferred location with values ranging from £220-£240k.

I have previously built up a fairly susbtantial debt burden which I will complete repayment on next week. No payments have been missed, however I do have a default on my credit report from an old mobile phone contract at uni which is due to expire from my credit report in November 2011. Therefore going forward from the end of April I will be debt free (credit cards and overdraft) other than my car finance commitments as detailed above. My credit rating is probably average at the moment, however my girlfriends should be fairly good.

How likely would we be to get a 90% LTV first time buyer mortgage at the moment (i.e. end of month) based on the above?

As our despoit is not great at the moment would we be best placed to wait until the end of the year when our deposit is higher and credit rating improved (i.e. default removed and 5-6 months in credit with no credit card debt)?

I was also wondering what is required as proof of income when it actually comes to securing an agreement in principle? Do you need to provide a certain amount of pay slips or bank statements to show what is going in and coming out?

Many thanks in advance and any extra advice would also be very helpful.

Kind regards
giggsy07

dimbo61

Carry on building your deposit and clearing all debts possible and this also gives time for your credit score to improve.
10% deposit needed and more is better
House prices are going knowhere