1st time buyer mortgage needed

GMS

Borrowing the deposit will not be acceptable to lenders and any borrowing on a credit card would impact on affordability meaning a reduced amount available on the mortgage.

rwharram16

GMS, that is not true or at least not accurate. The calculation can be made to see how much could be borrowed on a credit card, should the need arise to borrow a couple of thousand, in order to secure the property and given that there is another income involved but possibly not being used. I still believe that you can secure this loan with your partners default and avoid the question of whether it's 5x income or not. The experience of 22 years.

Some more information on the circumstance of the default and when it was registered would be useful.

GMS

Any form of borrowing will have an impact. Income from a person not party to the mortgage is irrelevant to the lender.

Default was registered in March 2011 so likely to cause issues.

Wh05apk

Every £1,000 on a credit card would probably reducing the total borrowing by £1,800 (lenders use at least 3% of the balance x 12 = £360 reduction from income x5 = £1,800) so would be counter productive.

Hughesy84

Ok looks like I may have one through Halifax - However they can only lend me £143,180 so im about £3300 short of the deposit.

In terms of fees - the arrangement fee of £999 can be added to the end mortgage - does that make sense?

Also they have tried to sell me building insurance (£25) and income protection insurance (£14) - is that about right or should I shop around from independant companies?!

Wh05apk

I always recommend adding the fees to the mortgage, should the property fall through, you are then not left arguing with the lender to get it refunded.

Shop around for insurances HAlifax will not be the cheapest.

How will you bridge the shortfall? the lender will likely require proof of the deposit - i.e. statements showing the funds, or letter from parents etc, saying they are gifting the deposit.

Hughesy84

I went through a broker from country wide, they use AXA and friends provident for protection.

Money I'm working on!!

Wh05apk

Countrywide "load" their protection premiums quite a lot, try and find and independent broker, I suspect you will save quite a lot.

Hughesy84

When you say load their protection premiums, do you mean the income protection and house insurance? That is all iv taken out on top of mortgage....

• Monthly mortgage protection is £15.54 - that covers me for £820 a month
• My missus who isnt on mortgage has signed up to income protection for - £15.41 a month - that covers her for £500 a month
• Home protection plan (Buildings insurance) is £25.18 a month - but this doesnt cover contents

Wh05apk

Countrywide work off a very small panel of insurers, and certainly on the life side are very expensive, I have seen people who have been quoted £100pm for life cover, and then got the same cover for £40-£50, so I would say shop around, I am sure if you phoned a local independent broker, state what you have been quoted, within 5 minutes they should be able to get you a comparison figure.