Mortgages confuse me!!!

Lionbar1990

Hi Guys,
Just after a bit of quick advice...
My partner is with Nationwide and they are offering 95% mortgages if you have saved with them for so long...
We have enough saved up now for a deposit and to cover fees etc... Now she has never defaulted on any payments or had any CCJ's...
I have :-( I've paid back a couple of them and the last one I am in I am paying off and will have paid off by May.
We have a meeting with Nationwide on Saturday will they refuse us because of me?
Neither of us have any credit cards...
Thanks in advance...
Worried first time buyer.

Dave_Ham

I am afriad it is highly likely...

The fact that you can demonstrate going forward to them that as a couple you can save may mitigate some of this, but I still think you will be declined.

You really need to get it paid off asap. Was it a default or CCJ as not clear from your post. If CCJ I would say 99% sure they will decline you I am afraid.

The_J

No chance at 95% I am afraid. Unless you can do it in just her name?

Lionbar1990

i was querying it for a while with them then it came to a head that thy were right so I agreed to pay it.
There is two outstanding one finishes in May and the other in March. So not long to go.

I got letters through the post saying that they would take me to court if I didn't pay by a certain day so does that count as a CCJ?

Thanks for helping.

Lionbar1990

The_J wrote: »

No chance at 95% I am afraid. Unless you can do it in just her name?

She's only part time though and earns £7k ish a year I'm the breadwinner...

The_J

No that's not a CCJ. Get a copy of your credit report at creditexpert.co.uk

Lionbar1990

Thanks!

We've spotted a house at 90k in the area we want to be in and have £12k saved we only really wanted to put 5% down if we offer more though are we more likely to be accepted?

Sorry for being thick ha!

pinkteapot

These issues aside, your title said that mortgages confuse you. What about them don't you understand? Maybe we can help.

It's good to understand them before you speak to the lender and get bogged down in their current interest rate offers etc.

Lionbar1990

I don't really understand much to be honest...
Was worried that we wouldn't be accepted because of me more than anything so probably should of made that my title...

However I realise the difference between fixed rate and tracker but which is more suitable in the current climate?

pinkteapot

Whether a fixed rate or tracker will work out cheaper in the long run is purely a case of guessing where interest rates will go. If you think interest rates will rise, you want a fixed rate. If you think they'll stay low, a tracker may end up being cheaper. No-one can really answer this though.

If your monthly budget is tight, you may prefer the certainty of a fixed rate as your repayments will stay the same throughout the fixed rate period.

Dave_Ham

Still no positives I can see here.

The only way forward is maybe with Parental support and even then I am not sure a first class guarntor or 3rd person on the mortgage would mitigate a current default still being repaid..

This is a suggestion and lots of other variables to consider, but if one of your parents went on the mortgage with partner for a couple of years and the remortgage at end of deal with them coming off and you coming on. They would need to stack up income wise though and would never be my first solution...