Mortgage Advise

Hydey78

Hi,

I am new to this so please be gentle with me.
Me and my partner of 18 months are looking to get on the property ladder and saving for deposit for next year. I am 33 and my partner is 20. The major stumbling block i think we will have is that I have 4 defaults on my credit file which I have listed below.

Phone bill - £300 default on 20/05/2008
Cap One Credit Card - £632 default on 06/06/2008
Cap One Credit Card - £401 default on 08/09/2008 - While in DMP
Barclays Loan - £7333 default on 08/09/2009 - While in DMP

I was also on DMP with Churchwood Financial for about 2/3 years due to problems in the past with ex partners and loans, I cancelled this last month.
I am now completely debt free as I got some PPI back from a Welcome finance loan and paid off my debts last month. The only thing I have now is a Vanquis Credit card I use monthly to buy fuel and pay straight off at the end of the month so dont get charged. They have just upped my credit limit to £1000 but I go nowhere near it.
My partner has a completley clean credit history and the only credit she has ever had is a car loan from Natwest we got in her name for £7000 back in July but hope to pay off by the end of the year, and a credit card with Natwest which she uses for fuel the same as me.
I am also hoping to get some PPI back from the Barclays loan which is now paid off, I should know about this in November.

I earn 27K and my partner earns 10k.
What sort of deposit are we going to need, and what sort of chances will we get for a 150k mortgate.

I look forward to your advice

Thanks

rising_from_the_ashes

Hi, I would suggest talking to a mortgage adviser to get some advice - there are a couple of issues that will limit the mortgages you're able to get (if any)

1) there are 3 defaults from 2008 and 1 from 2009

Although you're now debt free, these will remain on your credit file for another 3 / 4 years which will definately limit your ability to get a mortgage

2) the level of mortgage that you want - even looking at your joint income, to borrow £150k is over 5.5 x your combined earnings. Very few lenders will now do this and it will be even more restricted due to the poor credit history which will still be on your file.


What is the LTV rate you're thinking about?

Hydey78

Hi Rising from the ashes,

We were looking at about 90% LTV, but not sure what the market is like as we are both 1st time buyers

rising_from_the_ashes

I def think a chat with an adviser would be good - there are a few places that offer free / whole of market advice and it may be worth having a chat with them.

As I say, the income multiple is very high - try it on this http://www.which.co.uk/money/mortgages-and-property/guides/mortgage-calculator-tools/mortgage-calculator-how-much-can-i-borrow/ and the poor credit history will also limit your options

Hydey78

Thanks Rising,

We will speak to a advisor and get there opinon

Thrugelmir

Worth looking at products such as Nationwides Save To Buy.

http://www.nationwide.co.uk/savings/limited_access/savetobuy/managingyouraccount.htm

This will go a long way to redeeming your previous credit history. In that an ability to save regularly will demonstrate good personal financial management.

handytips

You are off the high street i am afraid, looking at your credit file that you have posted you would need between 25 and 35% deposit, likely candidates for your needs will be Kensington and Platform home loans, contact a local broker and they will be able to guide you. Sorry for the bad new but its always better to know the truth