HELP- Can we get a mortgage?

rietveld

We have just sold our house and being naive I thought we could take our existing mortgage 118000 with Nationwide with us. They said we needed to reaply and turned us down.
I have been told different things by different brokers some say we have no chance 2 others have told me we have a couple of lenders that might consider us I need to know how realistic their views are.

our situation- in a debt plan have £8500 on credit cards these have all been paid off today, going to close all accounts in the plan to say settled on my credit file.

our credit rating is poor with some late payments it is 591

house were buying 178000
we have 60000 deposit
need mortgage as close to 118000 as possible may be able to make the rest up with a gifted loan from a family member

husbands salary 17500 with 8500 commission

would be really grateful for any advice

originalmiscellany

I fear you're not going to get many takers at the moment for the reasons you've said.
You've got debts on your credit cards, which although cleared will could show up on reports, showing you've had debts with your current salary.
You've got late payments which show to banks you can't budget/pay on time,

Your joint (?) salary is 17.5k guaranteed - where you are looking at an almost 7 times salary multiple to get it - even with the commission, it's almost 5 time salary.

If interest rates go up I fear you'd be spending so much on your mortgage you'd not be able to pay and you'd go under.

I'm really sorry, but it looks like you're in a very tight spot at the moment; Can you move in with friends/family in the short term to sort this out?

kingstreet

Ignoring the payment records on the cards and whatever they might be, you're likely to be offered a MAXIMUM of 5x income. That's basic + 50% of variable earnings as an absolute total.

Therefore, £17.5k + £4,250 = £21,750 x 5 = £108,750.

... and this assumes no dependents, no other credit commitments and an "A" credit score.

Frankly, I don't fancy your chances. Sorry.

rietveld

we could posibley only need a mortgage for 80000 as my dad may gift me 40000 to help us out.

do you think that that still is not obtainable given our circumstances
also how long would it take to build up our credit rating I've been told as early as 6 mths if we stayed sqeaky clean?

kingstreet

In order of asking;-

- maybe

- don't know.

Building a picture from a single post on here is fraught with problems.

A broker closer to home may be a good idea. Independent or whole market. No national estate agency chain advisers.

HAMISH_MCTAVISH

rietveld wrote: »

We have just sold our house

Big mistake.

When you say "sold" I do hope you mean STC, not that you have completed and exchanged?

Because there's no way you'll be getting another mortgage in the next 5-6 years at anything resembling a decent rate, if at all, based on the info you've provided.

Also the old Nationwide mortgages reverted to an SVR of base plus 2%, which is equivalent to the best trackers today. A mortgage deal like that you really, really don't want to give up. ESPECIALLY as you have poor credit and so will have no chance of getting another like it.

Please tell us you've not actually completed yet, and so can back out of the deal and avoid making what looks like a fairly catastrophic mistake???

rietveld

We. R a couple Of days STC if we can't get this mortgage were thinking of moving in with my parents waiting 6 to 12 mths to improve our credit rating then trying again for a mortgage we would be leaving this mortgage I don't know if that is a good idea or not know don't want to not be able to get another mortgage after moving out any one know if that is acheivable

chopper78

Are you still in your tie in period for a fixed/variable rate etc or have you reverted to SVR? If you haven't yet reverted to SVR, then you'll be lumped with potentially hefty early redemption charges.

rietveld

Still in fixed rate

Thrugelmir

rietveld wrote: »

We. R a couple Of days STC if we can't get this mortgage were thinking of moving in with my parents waiting 6 to 12 mths to improve our credit rating then trying again for a mortgage we would be leaving this mortgage I don't know if that is a good idea or not know don't want to not be able to get another mortgage after moving out any one know if that is acheivable

If you use this period of time to save money. Then it may be worth considering.

chopper78

rietveld wrote: »

Still in fixed rate

So moving out is going to be expensive as you'll need to settle the early redemption charges, which could well be several thousand pounds but will be detailed in your original mortgage offer and the KFIs.