Mortgage advice please

leereni

I am currently renting and would like some advice on getting on mortgage in the future.

Firstly, I admit I'm not great with money and have adverse credit.

I am 32 years old in a good secure job for the past 5 years. My basic salary is £37000 plus overtime which is normally about £5000 per year.

My adverse credit history includes:

A default approximately 5 years ago which was settled 4 years ago (£200).

I fell behind on a loan which was settled 4 years ago (£7000), this wasn't a default but shows on my credit file as 5 or 6 payments late for the 12 months prior to settling the loan.

I have another loan which I have maintained for the past 2 years however prior to that I had an arrangement to pay (£250 per month).

I have a catalogue which I was 1 month late paying about 8 months ago.

Please can someone give me some advice as to how I stand now in getting a mortgage, what the chances of me getting a mortgage in 12 months and what my best cause of action is to take. I've noticed some savings accounts from building societies offering deals on mortgages after saving with them. Don't know if these are good things.

Thanks

GMS

How much are you looking to borrow and what deposit do you have?

leereni

I'm looking at buying a shared ownership property.

Let's say I would have a deposit of £15000 on a new build scheme (I've noticed 20% is required on new builds), the mortgage is £70000 and the total property price is £175000.

leereni

Oh, and I've been with the same bank for approximately 12 years.

leereni

Please can I have some advice on the above.

Thanks

Conrad

Shared ownership schemes are only offered by high street 'clean' lenders. There are only a handful of such lenders in this sector. It's impossible to predict how thier computers will score you in 12 mmonths time. All I can say is make sure you are on voters roll, have a landline home number, keep stable - do not change jobs / Banks etc and of course pay everything on time, even when you are on holiday etc.

herbiesjp

What you need to do is make sure you do not have any problems between now and when you want to buy.

Anything older than 6 years will fall off your credit file - so that will improve your credit rating.

All the other glitches need to be addressed and brought bang up to date asap.

These steps will maximise your mortgage potential, as long as there are no late/missed payments outstanding on your file.

However what lending criteria will be, or how you will scored by a lender, will be anyones guess.

All you can do is improve your situation, to make any application more attractive to a lender.

leereni

What do you mean by high street 'clean' lenders?

whatyadoinsucka

i'd recommend you setup some direct debits for minimum payments, so its impossible to forget to pay loans / credit cards etc.
(Ensure you have an overdraft to cover these)

and start spending within your means.. :0)