next step in getting a mortgage

nixilix

Hi

My husband and I are seeking a mortgage at 90% ltv. he was previously bankrupt in dec 2006 discharged 2007. We have an income joint of 40000 and are looking at properties of around 120000. We spoke with a broker who said we were unable to get a mortgage. He tried aldemore for the family gaurentee but wouldnt take us until dec 2012. we have 2 cc of £8k (4k each) and nationwide wouldnt accept unless these were paid off... but that would swallow most of the deposit.

any suggestions where to go?

Dave_Ham

Halifax is typically the preferred lender of choice in this area, although I hate just giving their name without more information being known.

Do not just go there (or anywhere come to that matter though) check their criteria or get a broker to check the criteria amongst others and then make a calculated selection.

If you have a credit card each, I assume hubby has got credit again and this will help..

Always, always declare the bankruptcy to any mortgage provider though as you will get found out if not at conveyancing...

Good luck

nixilix

thanks for the response.

the cc are mine. he is able to get credit as we have a car on finance which we have had for 2 years.(didnt put that above sorry) his credit is squeaky clean since.

I won't apply for anything as i know how damaging the rejection could be.

i would never not declare the bankruptcy - even in 5 / 10 years i'll mention it!!!!

so would it be worth seeing another broker as this one has said we have no where to go?

Dave_Ham

Absolutely, just ensure until they have talked you through your options and why they are selecting a specific lender and be comfortable with it being wise.

I am interested how far you got with Nationwide and was this directly or through a broker?

What are your respective incomes?

I always say on these forums to try and get a recommendation of an experienced broker from a friend or family member and steer clear of estate agency mortgage advisors as no matter what they say they are the least experienced.

Aldermore was not a bad choice from your broker as they can be flexible on credit history, although not too much so on their 100% mortgage product...

nixilix

thanks

Me - 8885
Husband 31770

It was through the broker - he discussed it with them and they said they wouldnt consider anything less than 15% dep unless we cleared the credit cards.

I dont know if it makes a difference that the credit cards are mine? I have recently returned to work after maternity leave and have gone back part time.

Dave_Ham

Ok - just put you through Halifax affordability calculator and have guessed at the car finance being £200 a month.

On that basis potentially they would lend between £110k and £132k depending upon credit score - They score a b or c on passes. They do restrict their lending slightly in the 90% bracket

The whole world becomes harder if you post in a minute that hubby is self employed, but just different hoops to jump through.

Whilst it appears there may be hope and I would feel confident of achieving a solution, your broker would have had much more detail than I/We have on the forum so please do not constitute this is Halifax say yes.

It will be well worth the £8 to get up to date credit reports from Experian and Equifax for you both individually to see exactly what is on there.

And then yes, present these to another broker if your one has written you off but please ensure they do not take any additional credit searches out as that will not be helpful.....

nixilix

Thank you ever so much.

The car is 170 a month. We are both employed and have been with the companies for over 4 years.

I dont think the broker did any actually applications - just sussing out if we would be applicable. I may look at another broker to see what options they could provide.

I've also see the newbuy scheme which was announced today but im unsure as to whether a new buy is what we want.

Again, thanks.

Dave_Ham

Most welcome - do keep us updated and shout back if you have any further questions or just to verify the intent of any new brokers solutions...

Good luck

nixilix

Just thinking.... as the cc debts are in my name and i have a part time income would it be better to apply just in husbands name as we wouldnt have to include that debt?

Then maybe in a few years time get a mortgage with both names?

Dave_Ham

It depends on if this issue is afforability or credit score (which I think)

Assuming your credit score is good, it makes sense and for future ease to leave you on there.

Your broker really should be pulling this together for you rather than you doing the reading and thinking, but in essence it is good you are thinking of potential solutions and not moaning about your circumstances and that lenders wont help..

nixilix

I do the moaning to the husband

As my debt equals my annual income then i thought it might be better with me off the mortgage and 8000 less "debt" (but obviously that leaves us 8000 less in the income pot)

We are looking at properties of between 110000 and 120000 so this would mean nearly 4x husbands salary or 3x both ours. Hmmmm... we are throwing our ideas at the broker but i think if there was an "easy solution" he would have thought of it!