First time buyer/bad credit

KerryJean

Hi there

My boyfriend and I applied for a mortgage in November of last year but unfortunately - due to my bad credit (x 2 defaults which were paid off in March last year) - we were refused (even with Platform!).

A friend tells me that she managed to get a mortgage in her name only but which also takes into account her boyfriends wages and suggested I contact her broker.

I just wanted to check that this was actually possible before I get in touch with him - dont want any dodgy dealings!

Thanks in advance.

PS - we have a deposit of around £15k, earn a combined salary of £58k and want to buy a place for around £210 - £250k.

Mr_helpful

I am surprised you couldnt get a mortgage. A couple of defaults is not much. I often deal with far worse. How big are they and have you satisfied them?
I think it would class as dodgy using boyfriends income but not putting him on the mortgage but its been done plenty of times below 90% LTV

harpyboy07

Hi,

I too am a first time buyer(well hopefully!) and right now I am at my wits end with reference what to do. I'm 25 years old and had a default for roughly £700 which I settled 3 years ago, I also had one account which was in 2 months arrears abnout 3 years ago. This is where I really regret my irresponsible student lifestyle! I have been earning £30k plus for the last 3 years and currently don't have any bad debt and I am hoping to get myself on the property ladder as soon as possible.

At the time of speaking, i have yet to apply for a mortgage however over the past couple of years i have had some problems gaining credit due to the afore mentioned sins! Basically I am just looking to hear from anyone whom has been in a similar situation or anyone has experience in this field such as MR HELPFUL.

Would it be realistic for me to get a mortgage, I have a £5k deposit? My other option is to apply for a joint mortgage with my GF but we both would like to buy our own place? Any help would be useful as I genuinly don't know what to do. I earn £34k. Thanks for taking the time out.

MortgageMamma

harpyboy07 wrote: »

Hi,

I too am a first time buyer(well hopefully!) and right now I am at my wits end with reference what to do. I'm 25 years old and had a default for roughly £700 which I settled 3 years ago, I also had one account which was in 2 months arrears abnout 3 years ago. This is where I really regret my irresponsible student lifestyle! I have been earning £30k plus for the last 3 years and currently don't have any bad debt and I am hoping to get myself on the property ladder as soon as possible.

At the time of speaking, i have yet to apply for a mortgage however over the past couple of years i have had some problems gaining credit due to the afore mentioned sins! Basically I am just looking to hear from anyone whom has been in a similar situation or anyone has experience in this field such as MR HELPFUL.

Would it be realistic for me to get a mortgage, I have a £5k deposit? My other option is to apply for a joint mortgage with my GF but we both would like to buy our own place? Any help would be useful as I genuinly don't know what to do. I earn £34k. Thanks for taking the time out.

Yes you shoudl be able to get a mortgage and based on what you say there are even mainstream high street lenders who would look at this but the trick is to make sure you approach the right ones

how much are you looking to borrow?

JoeK_3

Harpyboy07

No problem there!

You could have a £136,000 mortgage with a high street lender without a problem.

JoeK

harpyboy07

Thanks for the swift reply,

I've heard from some of my friends that certain lenders offer 5x salary, some 4x but mostly 3x. I'd be looking to take out about £130k and have £5k to put down. It's just daunting! why is it that I'd be able to get a mortgage yet some lenders won't give me a credit card?
Thanks again

MortgageMamma

Hi Harpy boy

I would recommend you increase your dposit if poss. I dont think you will struggle to get that amount. If you can't increase your deposit then there are other options but take professional advice first - its important to get it right first time

harpyboy07

I may be able to increase it slightly but if the worst came to the worst I would take a 100% mortgage. I just don't understand why in some ways it seems easier to obtain a mortgage than it is to get a credit card or personal loan! I was thinking of going to my own bank as they seem aware of my earnings due to the fact they basically offer me an overdraft upto amounts I don't require. Would you recommend this or should I just go to an independant broker?

steveandel

harpyboy07 wrote: »

I just don't understand why in some ways it seems easier to obtain a mortgage than it is to get a credit card or personal loan!

Because a mortgage is secured debt, if you don't pay, they can take the house off you so they don't lose out. Credit cards are unsecured debt which can be riskier for the lenders :cool:

MortgageMamma

I would recommend you went to an independent whole of market broker - that way, instread of just finding out what one company will offer you, they will look at all lenders, and see whether you fit that lenders criteria

a good broker will hold your hand all the way through the house buying process - they can help with more than just the mortgage

I could be a little bit biased though ;-)

But brokers make life easier!

MM

harpyboy07

Thanks for all the advice, I will get the ball rolling tomorrow, just hope my previous bad credit doesn't come back to haunt me. No doubt I will be back on this time tomorrow. Again, all advice, be it positive or negative is welcome.