Can we get a mortgage?

Mouse123

We are looking for a mortgage of approx £60K on a property worth £110000.

We do have quite a few issues, my husband is disabled and is unable to work at the moment, he has a guaranteed medical pension and DLA. I am his full time carer and get carers allowance as he requires constant supervision. Our combined income is £23k per year including child tax credit and child benefit.

We have completed an IVA and our credit files are now clear but we know this will have a negative impact.

We have looked into social housing but there is nothing available. Do we have any chance of finding a mortgage?

jon557

From what I have seen, mortgage companies often say you must have a regular guaranteed income of at least £20kpa. However some also mention criteria like the duration must be complete before you retire. So I can't get a 35 year mortgage because I retire in 34.5 years.

I would say you are in a good enough situation, have you tried speaking to a broker such as London and Country? They are specialists and take care of all the hard work for you.

Regards.

Mouse123

Thanks for your reply, we haven't tried London and Country but will give it a go. We were looking for a 25 year mortgage with the facility to overpay to hopefully reduce the term in the long run.

Is it worth speaking to a range of brokers and high street banks/building societies or just brokers?

The_J

Your LTV is good but your credit history is not. I think L&C may not be the best bet. Would see what Dave Ham has to say on here, he is good at this kind of thing.

Mouse123

Thanks for that The J. I know that our credit history is terrible but was hoping someone, somewhere would be able to offer us a mortgage at a reasonable rate (I know it will be higher than the norm).

Dave_Ham

Hi there,

This sounds achievable, although there are a few hurdles that I do not have sight of to be more definitive..

I assume this is a purchase, where did you raise the deposit from?

Specifically, how is your income made up, paid and is it for a fixed period of time or indefinite and is it guaranteed..?

You also need to steer clear of any creditors of the IVA, whilst it is off of your credit report it will not be off their internal systems and that of associate banks..

Mouse123

Thanks for answering Dave. It would be a first time house purchase.

The deposit is made up from a personal injury claim and recent savings.

Income will be £10k from medical pension for the rest of life, DLA was awarded for two years due to change over to PIP but condition is unlikely to improve for long term if at all but is not life threatening. Carers allowance will be reliant on the DLA/PIP being renewed in 2 years. Child benefit & tax credits will be paid for next 9 years.

We appreciate that we will need to avoid past creditors.

Dave_Ham

Thanks for the information.

Based upon this information, on the face of it I still believe it is achievable although would suggest you will require an experienced broker or IFA.

Have you run any credit since IVA?

Mouse123

That is hopefully good news.

We have a store account with £3600 limit but is paid each month, mobile phone contracts that have been reported during the whole time of IVA and a new one since finishing just £10 rolling month and a cash plus card that reports each month.

Mouse123

Forgot to ask is there a register or something where we can details of financial advisors as we don't really know where to start.

Dave_Ham

There is not really a register as such and be careful of what Google throws up..

You cannot beat a recommendation, speak to friends and family and pick up a good one.

Given the loan size and complexity, would suggest you can expect to pay a fee...

Good luck