chance of a first time buyer mortgage ?

toastietom

Hi,

Ok my stories a tale of two halves really. Up until two years ago I had about 30k of unsecured debt with alot of late payments (though no defaults or CCJ's) due (in part) to spending 10 years as a student and basically spending too much money! Since qualifying 2yrs ago I have paid everything on time and have about three mths to go till Im debt free.
Im now in the fortunate position to be in a secure job earning 45k and was envisaging having saved a big enough deposit to start looking at buying a house in about a years time, this also giving me more time to build up a top notch credit record. However, a house has come on the market for 115k that I really like and my parents have offered me the 10% deposit. Will my 2 years perfect credit be enough to get me a mortgage or would I be jepordising all my hard work over the last 2yrs and risking getting a refusal on my credit report.

I do plan to organise to see a mortgage advisor but any advice would be greatfully received!

Thanks

Claire

hcb42

I would think you have a reasonable chance, you've shown you can pay off debt and are not looking to borrow the earth

toastietom

Just logged into experian and got a score of 910 which puts me in the 'good' category apparently. Not sure if this makes any difference to my origional question??

kingstreet

Claire, you won't get a refusal on your credit file. All it will show is a search and that's fine as long as you don't have loads of footprints on there.

It's touch and go at 90%. I'd say if you head to HSBC you're likely to be declined. Ordinarily, I'd say you need an independent/whole market broker but at 90% the difference between broker and direct deals could be quite large.

I've just run a £115k 90% £103.5k mortgage FTB purchase and the top three products shown are;-

Tracker - 2.49% Yorkshire BS (Direct)

2yr fix - 5.39% Post Office (Direct)

5yr fix - 5.49% Leek United (Direct)

You need to be careful in choosing the right combination of rates and fees payable.

And ignore the daft numbers you get from credit reference agencies. They are a rough guide at best.