mortgage broker on Monday any tips

morgan78_2

Ok really nervous current situation is me and partner have 2 kids boy girl and one on the way, living in a 2 bed house, good news first

mortgage outstanding with Natwest £57000 15 yr term value £126000

Wages me £8000 p/t partner £43000 split between basic and commission

house looking at is £220000

bad news

5 years ago fell out of work so got a total of 8 defaults split between me and partner, range from £400 to £14000 totalling £32000 the first one will be 6 years old October 2012 and the majority will be 6 years old in May 2013

6 defaults have been settled, 2 left one for £1500 and one for £11000.

What are the chances of us obtaining a mortgage and any advice for my meeting with advisor on Monday

Regards

Thrugelmir

You need to deal with the defaults before any mainstream lenders will consider you. If you can afford a larger mortgage then accelerate repayment of the debts.

Defaults only disappear off your credit record after 6 years from settlement date.

morgan78_2

I know defaults drop off after 6 years and have been paying off creditors only 2 to go but we just are not going to have any room to move
in this house so wanted to see what my options are if any

GMS

There are lenders who consider applications where defaults are over 2/3 years old.

Higher rates than high street lenders and affordability could be tight. Likely to need a 20% plus deposit.

Your broker should know if your case is one which looks to fit. Are you selling the current property to use the equity as a deposit?

Thrugelmir

GMS wrote: »

There are lenders who consider applications where defaults are over 2/3 years old.

and with 2 defaults outstanding totalling £12,500?

GMS

Yes. The date of registration is the key. If the defaults are being paid towards then they will take it as a commitment.

May choose to decline but criteria would allow the defaults.

morgan78_2

yes we are paying towards the debts and all the equity from house sale approx £69000

GMS

Get copies of your credit searches from Experian, Equifax and Call Credit. Pay for the £2 statutory reports rather than the free trials which can be difficult to cancel.

Give these to the broker and see what they come up with. Check your broker has access to 'Specialist Prime' lenders.

Wh05apk

.............and be totally honest with your broker, tell the truth, not what you think they want to hear, it will save time, and they can give you the right advice straight away rather than after everything comes to light.

You may be better using some of the equity to repay the defaults, otherwise the repayments will be taken as a commitment, reducing your borrowing potential, speak to your broker about this, and explore your options both ways.

morgan78_2

thanks for your replies pity you 2 are not local could ofused you

Conrad

I cannot see any lender doing this unless you considered putting the property is one name only if one of you has a clean credit history.

Good luck