Help needed from Mortgage Advisors please!!

paddyandstumpy

My partner and I were planning to start looking for our first property (we both live with parents) in January, when our target £25k is in joint savings.
Currently we have £18.5k in joint and £2k each.
However, I found online (bored at work) our dream property, ticking all the boxes and more. The guide price is £165k-£185k and there is an open house this Saturday, so I would expect the property to sell this w/e.
Frustratingly, as we werent planning on starting looking for another 6 months we dont have any AIPs or anything like that.

To further cause an issue, my partner is self employed with 1 full year of accounts, and I have defaults from when i was young and stupid with loans. I fully paid the loan off in Oct 10 and have been squeaky clean since. I have a credit card paid in full monthly to try and increase my score, but over 6 months the change is neglible. My partners credit is perfect.

What I need from the experts is advice on who to approach, if we can get a mortgage at all. We have 10% deposit.

harvey115

Sounds like a broker case.

From the looks of it you have 10% deposit, so you should have some deals available given your financial circumstances.

You do not need to have an AIP in order to start on a buying process. I would do the following:

1) Speak to a Mortgage broker to see what your options are
2) Go an check out the Show house
3) Decide if you like the house or not and get full details - even with new build houses you can haggle (keep this in mind)

Once you have found the right house, reserve it, put in the mortgage application and instruct the solicitors.

Best of luck

paddyandstumpy

Thanks Harvey

My main concern is I dont know how much we can borrow;
I earn £30k a year employed with £2500 bonus.

My partner earnt £14k net profit self employed. she has 1 years accounts to prove this.

How much would you think we can borrow?

harvey115

Good question:

If its you alone on the application, you would be looking to get around £120K to £153K. However adding your partner would possible increase the amount.

A broker should be able to give you precise details on the amount available to you depending on your financial circumstances.

PS - checking with brokers do not cost (just ask whether they are fee-free or not). If you are happy with the deal and get accepted only then they make money.

Conrad

It will be driven by your partners income alone unless your credit score has risen sufficiently but this is a tad unlikely in view of your past defaults unless they were for minor amounts and some years back.

Some lenders take more of a self employed persons income into account than others.

Wh05apk

You will struggle, as the deposit is joint, lenders will not allow the motgage to be sole, therefore you will both need to be named, at 90% lenders are very picky, however if everything else is good you may be lucky, Halifax are probably the most likely, but their rates are horrendous, you need to find a good broker.

Because of your incomes, your income will need to be used anyway, again Halifax may accept one years accounts, no-one else will.

Simon_gloster

Principality will accept one years accounts, however as Conrad said the recent settled default will cause major headaches. If princ go out of their way to consider 1 yrs accounts they would expect everything else to be A1.

Halifax require 3 yrs income confirmed by the inland revenue, less than that is an underwriter case.

Dave_Ham

As above, this is possible although if I am honest I think not probable.

Can you check with Experian and Equifax exactly what is showing on both of your credit files?

The key will be if defaults are registered within 6 years and if they are showing on both Experian and Equifax and additionally verifying that these have been satisfied...

Wh05apk

Simon_gloster wrote: »

Principality will accept one years accounts, however as Conrad said the recent settled default will cause major headaches. If princ go out of their way to consider 1 yrs accounts they would expect everything else to be A1.

Halifax require 3 yrs income confirmed by the inland revenue, less than that is an underwriter case.

Principlaity will only accept one years accounts under 75%, and there max LTV is 85%.

Halifax will consider with 1 years accounts.

Simon_gloster

Maybe I'm looking from a direct approach Wh05, system requires 3 years whether any income declared or not. Entering £0 income will trigger underwriters involvement.

Even from our responses I think this would be a tad difficult mortgage to place given the adverse and lack of years trading. Cheers though.

paddyandstumpy

thanks all, its really helpful to get so many opnions.

We applied through Halifax first as they leave a soft footprint, but were turned down because of my credit score. I am after a lender who actually looks at the risk, my 24 month history is perfect; we've managed to save £18k in a year showing how disaplined we are...
It annoys me when 'the computer says no'...

The defaults I have are all fully settled, I dont owe a penny (what a feeling!!)

Any mortgage brokers able to help please feel free to PM me.