Getting a mortgage, do I have any chance?

Bluedroog

Hi Guys,

Looking for a little mortgage advice for first time buyers if I may, or the short of it - do I have a hope in hell of securing one or am I living in a dream world? I live in zone 2 London so not exactly cheap, buying would be out of the question but something has come up. Basically I live with my girlfriend in a small studio flat in a converted Victoria house, the landlord has been forced to sell but after at first being reluctant he has now agreed to sell the house as individual flats. Studio flats rarely come up on the sales market in my post code and as such this place is at a fairly unique price point for the area.

I don't have the best credit history but have recently been accepted for a Capital One credit card which I have been using responsibly for the last 6 months and have another I intend to use in the same way due soon. I am currently on a low income of around £20,000 but am in secure and steady employment having been with the company for a number of years. My partner currently only works part time but could accept a job out of her chosen field easily for the sake of joint income (and of course we realise she would have to do this), her earnings would be about 25k.

The flat I think could be available for around £145k and I think with the help of family I could just about scrape together a deposit of £15k+. My sister has a decent salary being a Doctor and owns two properties which she said she could potentially remortargage on to get some capital behind me.

I understand going through a broker can improve your chances of getting a mortgage but do we have a chance or would they not give us a 2nd thought?

Many thanks for any help.

kingstreet

Bluedroog wrote: »

I understand going through a broker can improve your chances of getting a mortgage but do we have a chance or would they not give us a 2nd thought?

I'd get copies of your credit files from all three credit reference agencies and make an appointment to see a whole market or independent broker.

They are Experian, Call Credit and Equifax. The £2 ones will do. Don;t mess around paying for online credit scores as they aren't too helpful.

Hopefully, you'll get spelled out what you can and can't do...

Bluedroog

Hi and thanks for the reply. I did get my credit report from Experian about a year or so ago, I'll have to dig it out and perhaps order the others too like you suggest. I can't remember the score exactly but it was really effected by not paying credit card bills as an irresponsible 18 year old some decade ago now. I haven't done anything since then to continually damage my credit but haven't really done much to reverse it up until the last year such as getting on the electoral register and using a credit card responsibly.


Assume my credit score is 'poor to fair' and concentrating on the money side of things giving the figures do you think there is a chance?

kingstreet

Bluedroog wrote: »

Assume my credit score is 'poor to fair' and concentrating on the money side of things giving the figures do you think there is a chance?

The information on your application is all weighed up, together with your credit history to give an overall impression of your quality as a borrower. The lender will base its decision on that. The size of your deposit also has great relevance. You'll be able to get away with some things at 75% you'd have no chance of at 90%.

I can't tell you whether you'll be successful but after you've spent an hour with a broker and he's gathered a lot more information than I can on here, he'll be in a better position to tell you what your chances are...

AskMeAnother

+1 to everything Kingstreet has said.

Be aware also that there some smaller building societies who do not do credit scores, only credit searches. So as long as you meet their income and deposit requirements - and your RECENT credit history has been good - you may stand a better chance with one of these establishments if you are struggling with the main high street lenders.

Good luck!