Firstbuy

Super_Ram

Hi All,

I was wondering if I could get any help or advice on the below situation.

Me and my girlfriend are looking to enter into the Firstbuy scheme as it seems a good way for us to get onto the property ladder. I have read through it all and I know this is not some get a house for free scheme but is a good way for someone like us to get on the ladder.

I have listed below the financial situation and hope someone good give us advice on where we are likely to stand with getting a Mortgage.

Firstbuy
Only require Moertgage for 80% of the Property
Only require 5% deposit

Our Finances

My Earnings: 26k
Partners: 21k
Total: 47k

Debt
Natwest Overdraft: 1200

Outgoings: 1500 a Month
Disposable Income: 1500 a Month

Savings: 7k

Credit Commitments
Mine: Credit Card Limit of 250 which I use full each month and pay off in total every month as am told this si the best way to use and improve Credit Rating

Partner: Credit Card Limit of 2oo which she uses full each month and pay off in total every month as am told this si the best way to use and improve Credit Rating

Credit Rating
Mine: Credit Score of 561 on Credit Expert and classed as Poor.
Mainly because I was in an IVA which I settled over 2 Years ago now. Only anomolly at the moment is an Orange Phone bill I dont use which apart for last month is entered on my Credit Report for the previous few months as late payment.

Partner: Credit Score of 229 on Equifax and classed as very poor
Main issues is there are 2 satisfied defaults initiall. One from 2006 and one from 2007.

Currently 2 defaults from last year which can be easily settled but want to know if I have any bargaining here to settle and get them cleared.

So my question is what is the likelyhood of us being accepted by Firstbuy and then more importantly accepted for a Mortgage.

Also would paying more of a Deposit help to ease the fear of a lending to poor credit people.

Any help would be great

Super_Ram

Anyone got any advice on this please

Thrugelmir

Change your mindset towards your finances.

You've already entered been through an IVA. So need to improve a lenders perception of you.

Little point in having unsettled defaults. As they are just another black mark against you. So take action to resolve them one way or the other.

Pay your bills on time. Direct debit means no forgetting.

Clear your overdraft from your savings. Learn to live without using it.

Will take time to rebuild your credit rating. So its up to you to demonstrate that you've learnt from your mistakes. There's no sentiment as far as lenders are concerned, as its just business to them.

Super_Ram

Thanks for the Advice,

I have been in that mindset for a while now but has been hard and a few bumps on the way.

My current plan is to use savings to clear Natwest Overdraft

In terms of the defaults there is about £300 pound left on them combined so will be clearing that this week to get them settled. Does anyone know roughly how long it takes to change to settled on your credit report and how much better is an unsettled default compared to a settled default.

This will clear any Debt we have and most due to be all bills will be Direct debit by end of the Month. Also will carry on using Credit Cards as have been as been told this is the best way to build your Credit using a Credit Card.

In terms of Dispsable income we are in a very good position and both our jobs are very secure.

So the only thing that remains is the Credit Report which is not good for both.

I have a meeting end of this week with a Financial Advisor so was looking for some advice on whats the chance in this new scheme we may be accepted or does increasing your deposit really help to ease the Mortgage suppliers risk that much they would consider you

Thrugelmir

Close any credit card accounts you no longer use. Don't just stop using them.

geoffky

I think the banks will get revenge on you and it will be a few years before they will entertain you again..

The_Road_Warrior

I would keep saving for the next 5 years, by that time you'll have a large deposit, your past credit issues will be a 'off the radar' AND house prices MAY well have bottomed out by 2017.

Forget government schemes to keep prices inflated, that cr*p is for the benefit of the banks and construction companies!

SAVE, SAVE, and SAVE more!