first time mortgage advice, urgent!

firsttimebaby

Hello,

I am completely confused! I am a school teacher with a permanent job. I earn £25, 255 a year. My credit rating is good, with some old missed payments. My partner is self employed . We have a 5% deposit, which could be 10% at a push. We have a financial advisor on the case... So far he has applied for a mortgage in principle with NATIONWIDE, jointly with my partner for us. This was declined, with no reason. I suspect that his fair/poor credit did that! As this is one of the only lenders that we can use through the first time buyers scheme we are looking at, do you think I should reapply to Nationwide on my own, or will the decision be that same?

I must say that it doesn't look hopeful, we are feeling very disheartened.:(


Thanks in advance for any advice.

USM

How much are you looking to borrow? Agreement in Principle are given out like sweets so to have fallen at this stage indicates problems.

If you have missed payments your credit isn't good. 5% deposit is also very low and I suspect you would both need to be squeaky clean to qualify.

Does your partner have 3 years accounts showing profit?

ACG

How long ago were your missed payments, how many of them are there?

There isnt enough information, however you re-applying to nationwide would be pointless.

Your advisor needs to find out the reason, they dont usually give a reason without asking but he should be probing. Get copies of your credit reports.

Also, a 95% mortgage they are going to have stricter guidlines than say an 80% or 90% mortgage. So putting down the extra 5% might make the different but you need to find out the reason for the decline first.

Thrugelmir

Keep saving. NW offer the Save to Buy scheme which may be worth you taking a look at.

firsttimebaby

My partner doesn't have 3 years, so we will not apply jointly.

Now we would like to try through just me. By the sounds of it, it's all unobtainable at the moment, is it worth saving for longer until we have a bigger deposit or is a mortgage only for people with squeaky clean credit reports?.
I meant late payments on my credit file, and they are from 2008/2009.

My Financial advisor, thinks I should apply for the same mortgage, with only myself, with the same bank, as he thinks the problem is my partner. I don't want another failed credit search on my report if this is not going to happen.

What do you think?

USM

How much are you asking to mortgage?

firsttimebaby

The mortgage is £87,000


But we have 5% (10% at the end of the month). This means we are asking for £82,650.

The_J

I expect it was credit score. You have to be perfect at 95% LTV.

Thrugelmir

firsttimebaby wrote: »

What do you think?

You are buying the property jointly. So best to do so. For all sorts of potential issues that may arise further down the road.

poppy10_2

firsttimebaby wrote: »

The mortgage is £87,000


But we have 5% (10% at the end of the month). This means we are asking for £82,650.

5% isn't enough, if your credit is "fair/poor".

firsttimebaby

My credit score is 942, (it is only me applying for a mortgage) and I know that this counts for nothing as the banks have their own scoring system, but I don't think it would be poor. I can't see how my credit can improve beyond this within a year!

How depressing...