chances of getting a mortgage

saddlers78

ok here goes with my situation 5 years ago lost my job and defaulted on my loans when i entered a dmp

12k
8k
1k
my wife

1800
4500
2000
1500

most of the defaults were entered on may07

I have paid all off apart from the 12k one and the 1500 onenever missed any payments on these or mortgage

Been a homeowner for 9 years have around 65k equity in house, now we live in a 2 bed and have 2 kids already tight but we manage but wife has just found expecting again,

i earn 43k a year which is made up of basic commision and o.t wife earns 8 k a year, house we have seen is £220000,

Now my inital plan was to wait till defaults fall off remortgage my current house and use the equity for a deposit but still keep it and rent it out vauled at £125000 and would rent it easy for £550 a month, but since our recent news I really need to think about moving quickly what do u reckon my chances of getting a mortgage are, I have also just been accepted for a new mobile phone contract and a credit card through capital one whch I am using to improve my rating

thanks for reading

GMS

You should speak to a broker. There may be lenders for you but trying to rent out your current property may be a bridge too far as you will need a good sized deposit for a new purchase.

Have you approached your current lender to see if they would be prepared to assist you with a new mortgage on a purchase?

saddlers78

my current lender is natwest just though with our history a high street lender wouldnt touch us, with regard to keeping my current house doo you mean that the amount overall i would be borrowing would be to much

thanks for your reply

GMS

I am assuming you would need to raise a deposit for the new purchase from either remortgaging or sale of current property?

Adverse credit would hugely restrict any Buy to Let mortgage and mean a higher deposit needed for the new mortgage. As aresult both may be unrealistic but sale of current may raise enough deposit to fund a new purchase.

Natwest will most likely reject your application but it may be worth having a chat. Be totally honest with them and ask what your chances are. Try to avoid any credit checks.