Can we get a mortgage???

ZoeUK

Hey everyone,

Me and my boyfriend would really like to buy but I'm not sure we'd be able to get a mortgage...

I have 2 defaults from when I was a silly student and they are both for very small amounts...I think about £100 that were paid straight away- within a month of the default being issued. One was about 3 years ago and one about 1 year ago. Whilst I was a student I was also quite bad at paying my credit cards on time etc. Now I am a trainee solicitor and will be earning a good wage once I'm qualified plus I am much more organised with my finances. My partner has good credit but a loan of £8000 that we plan to pay off quite a good chunk of before applying for a mortgage. We plan to cancel any credit cards we have to 'decrease our borrowing limit' before applying for a mortgage also. We have a joint income of £30,000.

Is it possible we could get a mortgage? Is 100% out of the question??

ossie1_2

Find a good mortgage advisor and see them as soon as possible. I am not a mortgage advisor and could suggest some for you to talk to as I know a lot of them but not sure that I am allowed to recommend anyone on this website. Perhaps you can advise if I can.

MortgageMamma

Hi

1. Yes you could get a mortgage
2. Yes you could get a 100% mortgage (subject to your credit being EXACTLY as you listed, its worthwhile obtaining your credit reports from both experian and equifax to check you can do this online)
3. You would be wise to cancel the cards and pay off as much of the loan as poss, it will give you a better start
4. see if you can twist someones arm at work to do your legal work at cost - a few of my clients who are solicitors do that

ZoeUK

Thanks guys, thats reassuring!! I actually work in conveyancing so could do my own for cost at work which is a bonus. We could probably manage a small deposit- is it over 3% deposit that takes you out of the 'high risk' category and away from high early repayment charges etc?? Would we find it fairly easy to find a high street lender as I think this is what I would prefer. Which lenders would best suit our situation?? I know what ones I like to work with but not too sure about lending off them!!

oscarsacco

Higher lending charges vary enormously from lender to lender - normally 5 or 10 %. We had 3% deposit with Abbey and got with it (was called MIG back then).

MortgageMamma

ZoeUK wrote:

Thanks guys, thats reassuring!! I actually work in conveyancing so could do my own for cost at work which is a bonus. We could probably manage a small deposit- is it over 3% deposit that takes you out of the 'high risk' category and away from high early repayment charges etc?? Would we find it fairly easy to find a high street lender as I think this is what I would prefer. Which lenders would best suit our situation?? I know what ones I like to work with but not too sure about lending off them!!

You can get mortgages above 90% loan to value without incurring a higher lending charge but sometimes the rate can be a little bit higher. I did a quick search on trigold the other day to browse through the two and three year products. There was over 40,400 of them. quite a lot to compare, thank god us brokers have software to help us!

There are a couple of lenders doing 97% mortgages, but I would suggest you compare options with a 100% and even look to build your deposit a little further - a whole of market broker could really help you here. I'm sure if you work in conveyancing someone in your department must have regular contact witha broker? Hopefully someone from work can recommend a reputable local broker to help you out.

liz09

I had some defaults from about 2 years ago and our mortgage advisor was worried about us getting credit. She made the decision to go for Northern Rock - she applied and apparently we had a really good credit rating. She couldn't explain it. She advised us to try a better deal with this info in mind so we did and managed to get a much better rate.

We had a 5% deposit only

Check your credit report at https://www.creditexpert.co.uk you can get free trials but it's not instant you have to wait for pins.

ds1980

i could get a mortgae tomorrow for £1 million i earn £25 k a year. Whether i can afford it is a whole different question.

Find a good advisor and youll have no probs