Mortgage after debt and age restrictions

fightingback4mykids

Hello, I haven't used this forum for a long time, but would be grateful for some general advice on a number of mortgage questions. I know I need to see a broker, but some general thoughts on our situation would be much appreciated.
Background:
My husband and I got in to a lot of debt a number of years ago (through our own stupid mismanagement and behaviour) and then my eldest child's disability (he is autistc) meant I could not work because he was constantly excluded from school, and no childcare provider would take him. We then couldn't meet our commitments and went in to a DMP. Luckily we got a statement for him and his educational needs are now met, I went back to work and I have been working again since then.
In the summer (July I think it is) all our defaults will be more than 6 years old, bar 2 small satisfied ones (for £300 and 180 I think) that do not expire until Feb next year.
We want to move house because my son starts a new special school in September and we don't want him to board.
We have a joint income of £95,000/anum, plus approx £20,000 in annual bonuses and £372/month DLA award. Our take home per month is £6000 minumum, more with bonus/ commission.
There is approx £160,000 in equity in our house, plus after working extremely hard to pay off all the old debts (through the DMP) we also have about £50,000 saved to move and put towards a deposit/ fees.
Our current mortgage is for £190,000, we have never mised a payment on it.
In a nutshell we are looking at a large mortgage (approx £260,000) but will be putting down £190,000 deposit on a £450,000 house.So large because the area we would need to move to is pricy, and we have 2 other children also so need a relatively large house.
We would like the mortage over 20 years.
Now to the questions! -
Is there any point at all considering the mortgage this summer? Or will those 2 remaining defaults put us in to sub prime territory? If that is the case there is not point even trying until next year and we may just have to rent near my son's school.
That brings me to the other concern. If we wait until next year my husband will be 45, I will be 42. We are more than happy to take the mortage over 20 years, but will we be allowed to at our age?
I don't really understand new affordability calculations. Currently after mortgage and all bills paid (but not including food/ clothing/ kids clubs etc etc) we have £4000 left.

Any advice much appreciated. If for nothing else but to give me a reality check and set my own expectations at a sensible level.
Thanks in advance

betmunch

Why is it not worth considering if you are "sub-prime"?

Your age next year, if you wait that long shouldnt be a problem, if your husband is in a job he could work until he was 66 and would mind doing so. Or you could just look at a 19 year term?

I think its worth you taking it further, even with the 2 little defaults still within 6 years.

I'm not saying you will be accepted for every mortgage, but I think someone with decent rates will take you

fightingback4mykids

Thanks for the advice, very helpful. We haven't ventured in to the mortage market for 11 years now, and are finding it all a bit scary as things are now so different.
What I don't want to do is apply with no chance of acceptance because then we will have loads of searches on our record. We have worked so hard to try and move away from our problems. Now have no debt, and my score is 985 - but very well aware that means nothing when it comes to how a lender is willing to risk rate us.
As for age, we will almost certainly be receiving more than enough inheritence in the next 20 years to not actually pay a mortgage to that point, but again, I can appreciate that a lender is not going to rely on that! We are both in the sort of jobs where we would be happy and able to work until retirement age.

betmunch

Then I think you have a good case, not ideal, but I think good enough to get good rates.

Good luck with it

Dave_Ham

I concur with Betmuch.

Age is certainly not a barrier and a decent mortgage broker will allay the damage done by the defaults and select an appropriate lender.

I also believe, this will be at standard rates.

It will be worthwhile ensuring you have both Experian and Equifax to ensure there are no new naughties on there as given your score, I would assume you have the Experian only...

Good luck...

fightingback4mykids

yes, I have the experian one only. Will take a look at equifax, had noth thought about that.... But best to be forewarned. Thanks again for the help without any judginess.

Simon_gloster

Your loan to value is good, net income good and apart from a couple of niggly little defaults you will get a mortgage.

Even on a 19 yr term on repayment @ 4.29% (pie in sky figures) this would me just under £1700 pcm. Plenty of disposable income available.

Because you have defaults and as you mentioned, I would see a broker about this they may be able to place you high street knowing some lenders may ignore defauts if your credit score is strong enough.

Shouldn't worry, I take your case on with open arms if I was in the business.

fightingback4mykids

Great, thanks, welcome advice indeed!
We are going to wait until the summer when most of the defaults will no longer show, and give us the chance to get our house tarted up for marketing, and save some more.
We really are going to have to move so let's keep fingers crossed that we will be OK. The last 2 defaults will be 5.5 years old, is so frustrating because I know that all our other factors point to being able to do this.
Oh well, we are nearly there now, and a very hard lesson learnt.

betmunch

If you are going to wait then also consider using a credit card (if you have one, dont get a new one).

Just use it once a month to buy your shopping and pay it off in full each month. This will have a positive effect on your credit file