1st time buyer mortgage needed

rwharram16

If I was placing this I would take it to Woolwich. Fees free mortgage

Wh05apk

rwharram16 wrote: »

If I was placing this I would take it to Woolwich. Fees free mortgage

But, Woolwich would be unlikely to accept the default, and wouldn't lend the OP over 5x if in his sole name.

Hughesy84

Thanks guys - so who would lend me over 5x my salary, and more importantly the amount needed?

We are based in Blackburn, Lancashire - appreciate the help guys!

Wh05apk

Not sure if any lenders will now, I think you really need to look at getting your wife on there, Halifax might be more tolerant.

Hughesy84

Do halifax offer good rates?

Any other options?

Do you suggest going to a broker 1st or trying another direct and risking another rejection on my record?

Wh05apk

Halifax are not the best at the moment, but they are more tolerant than most, I would suggest a broker, why not? they will find you the best deal.

Hughesy84

What will a broker charge? Or do they get their fee by finding the company a client?

Wont a broker do loads of searches though??

Wh05apk

Hughesy84 wrote: »

What will a broker charge? Or do they get their fee by finding the company a client?

Wont a broker do loads of searches though??

Some brokers charge, some don't.

A broker will find you a lender where it will most likely succeed before getting any searches done, whereas if you do it yourself, you could keep applying where you have no chance and racking up loads of searches.

Severall searches in themselves are not such a big deal, it's normal for people now to get 2/3 when applying for a mortgage, if you apply for several then that is where the problem could come.

rwharram16

You must go to a broker who has access to an underwriter, who can discuss the case prior to submission and either 1) agree the minor default (you mentioned you are trying to get it removed, is there a good reason for it? Is it a mistake?) or 2) agree the slightly higher income multiple. However, you mention having some savings and I would try to get your mortgage requirement to £143,000 (5x). When do you need to complete? Is it likely that you can save any further money prior to completion, which is when you would need the balance of fees?

My best advice would be to go that little bit further and try to reach 85% = £141,525, this will overcome the income issue and more importantly increase the number of available lenders and the rate that you can obtain i.e. approx. 3.50% instead of 5.39%.

Saving you something in the order of £180 per month.

There is also a short term argument for meeting the balance on a 0% credit card for 6-12 months. Idf this is repaid as quickly as possible, you would still be far better off in the future and particularly when you come to renew your product a the end of the product incentive period.

Your location is really immaterial to where your broker is. My clients are worldwide and the internet gives any broker access to any client.

Richard

Hughesy84

Cant get to 15% yet and we have found the house we want, and its a bargain. Valued at £180k, price agreed for £166,500. 2 years ago would have been worth closer to £200k.

I could possibly go to £143k if it means I can find a lender who will give me 5* my salary alone.......which lenders would offer that?

So your suggesting withdrawing cash from a credit card, which I then repay within so many months?!