Can't seem to get a mortgage....

dreadly

I am currently renting (8mnths) but prior to that I have had a mortgage for over 13 years. I am trying to get a mortgage but have been turned down.
I have got a 60k deposit and need a mortgage for 300k if possible.
Trouble is, I am debt free with money in the bank (Thanks money saving expert ) but I have a couple of CCJ's from 4 years ago when my business failed. They are satisfied CCJ's but I cannot seem to convince any mortgage companies of this. I tried using a broker but he was unsuccessful also. Any Ideas?
I have a credit rating of good - 700 points. Probably not the best but I do not know how to get this higher right now.
I have a good professional job and earn 57kpa + benefits and car. I also have three kids.
Am I just aiming too high? - Should I try and buy cheaper? Any ideas?

GMS

The CCJs will be considered by some lenders and the 20% deposit you have is enough to open up some specialist lenders. How much were these for and who put them in place?

Issue looks to be the amount you are looking to borrow. 300k loan is over 5 times salary. 3 kids will lower your borrowing too.

What did your last broker say? May be worth speaking to another and 'working backwards' as in see what you could borrow and try to find a suitable property rather than fall in love with a place only to find out you cant borrow enough.

dreadly

GMS wrote: »

The CCJs will be considered by some lenders and the 20% deposit you have is enough to open up some specialist lenders. How much were these for and who put them in place?
One CCJ is for £800(Southern water - my fault) and the other was by a dodgy 'no-win-no-fee' company after an insured fault car accident for £4k. This was settled but I cannot get the insurance company to sort out the removal of the CCJ
Mortgage applications where proposed to Abbey and I think Santander by a 'whole of market, no fee' advisor.

Issue looks to be the amount you are looking to borrow. 300k loan is over 5 times salary. 3 kids will lower your borrowing too.
We also have disability and carers allowance income for two of the kids to the amount of ~500 per month - We where told some lenders will take this into account?

What did your last broker say? May be worth speaking to another and 'working backwards' as in see what you could borrow and try to find a suitable property rather than fall in love with a place only to find out you cant borrow enough.
He wasn't awfully forthcoming with that kind of info.... I got the impression it was too much hastle!

Sorry for the inline replies - Thought it would be clearer?
I would love to find somebody who can tell me what I can realistically borrow - Might stop the other half nagging also - LOL

Thrugelmir

At just 5% interest rates a £300k repayment mortgage would account for over 50% of your take home pay.

Suggest you take a bottom up approach, i.e. how much can we afford on mortgage repayments. To ascertain the amount its feasible to want to borrow.

GMS

dreadly wrote: »

Sorry for the inline replies - Thought it would be clearer?
I would love to find somebody who can tell me what I can realistically borrow - Might stop the other half nagging also - LOL

Was an application submitted to Abbey/Santander (same company) and declined?

I would suggest getting a maximum borrowing figure and work from there.

Good luck

dreadly

GMS wrote: »

Was an application submitted to Abbey/Santander (same company) and declined?

I would suggest getting a maximum borrowing figure and work from there.

Good luck

Yes, an application was submitted and declined!
I am already paying more than the mortgage payments in rent, so not too bothered about the cost.

Thrugelmir

dreadly wrote: »

I am already paying more than the mortgage payments in rent, so not too bothered about the cost.

While your not. The lender will take a view on affordability with regards to your outgoings.

Yorkie1

dreadly wrote: »

Yes, an application was submitted and declined!
I am already paying more than the mortgage payments in rent, so not too bothered about the cost.

But the lender will base affordability on a more historically average interest rate %, rather than those around at the moment. Just because mortgage payments might be affordable now, doesn't mean that they will be affordable when the interest rates go up.

dreadly

I would also add that both CCJ's will expire in 2013 from my records. But I want a house now

How can I find out what I CAN borrow??? I apologise for my ignorance in this field but I know very little about this area

GMS

Different lenders will have differing amounts sometimes varying massively.

As you have adverse credit in the past you really should seek the help of a mortgage broker. Once you have completed a fact find the lender most suitable should become clear at which point you can get an accurate estimate of what you could realistically borrow.

property.advert

Whilst I know little about specialist lenders, you should remember that at some point in 2013 your record will no longer attract a premium interest rate and consequently, you may well wish to remortgage at normal rates. Hence any product at high interest rates should not really tie you in for much more than a year.