First timers needing a mortgage...

billymadbiker

Hi all,
We have been renting for the last few years and have had a good deal through some friends.
Now they want to sell the house so we are looking to buy our first place.
The starting price for houses in are area is about £120,000 but ideally we would like the sort of house that is about £150,000.

Now, I am 26, self employed and all ways have been (since 2000). My income (before tax) has been around £20,000 over the last 3 years. I could take on extra work if needed and put it up to around £25,000 in coming years.
I do have all the normal accounts but I have done them my self (they are not audited or signed by an accountant.
I have used the 'checkmyfile' site and the results are not that good.
Experian give me a credit score of 752 (3 stars)
It showes no searches on my record which = bad, the electrol roll matches which = good and all the rest = none.
Callcredit give me a Score of 786 (5 stars)
No searches on fil = bad
2 defults on file = bad
Hosehold score = 903
I am not sure why i get 5 stars even with 2 defults or why my household score is better than my personal score!
The worst one is the Equifax = score 477 (1 star)
2 searches and 1 audit footprint = still bad
Serious arrears on multiple accounts
active accounts not registered at my current address

Also, I have a current loan with natwest which i took out for £12k and still owe £5k. I make all the payments on DD and have never missed one yet it is showing up on my file as every payment being made 1 month late!

As well as the loan I moved the balance of 2 credit cards onto a new one (total £3k). Now the total available credit showing on my file is £10k and it is also showing me as useing 98% of my available credit.

Do I need to worry to much about this? I could make me report 'look' better by increasing the limit on my credit card (or, even better, paying it off)
Also, should I ask the bank why all the payments are showing as 1mth late? I presume its because when i took the loan out, they gave me the money, then started taking the repayments 1mth later.

Now, My partner is 23 and in full time employment. She earns £19,000 a year.
She is the exact oppisit of me. No credit cards but she hase had one loan previously (never missed a payment) and one current loan which she still owes £4k on.
She is also only ever been on the electroll roll at her perants address.

In terms of a mordage - could we get one for £120,000+?
We would either need a 100% mortgage (we have about £2000 in savings which we will need for fees) then we could afford about £900 a month in repayments.
Or, my bank say i can increse my loan back to the original £12k and my partner can take an extra £4k on her's. That way we could raise a 10% deposit but it would all be through borrowed money.
Is this acceptable to a mortgage lender?
Also, would it be worth trying to find a mortgage lender that uses callcredit for theire credit checks?
I am thinking anybody that uses Equifax won't touch me!

Thanks!

billymadbiker

Anybody???

JoeK_3

This should be possible.

See a whole of market mortgage adviser.

JoeK

MortgageMamma

Bit too much info to swallow there! You need advice froma professional - nobody can give you any yes's or no's on a forum there is a lot more to assesment - and I doublt you will be able to get a 100% mortgage with three years unaudited accounts which you have prepared yourself - try and find a deposit - I dont understand why you need 20k for moving costs?

JoeK_3

You could use some of the £20,000 as a deposit and arrange a £125,000 repayment mortgage over 25 years at £814.86 pm.

JoeK

The_Bear_6

Way to work yourself up over a few credit checks. Far too much information there, give L&C a call. They'll break it down and give you a viable option.

JoeK_3

The_Bear wrote: »

Way to work yourself up over a few credit checks. Far too much information there, give L&C a call. They'll break it down and give you a viable option.

Hi Bear, are you linked to L & C? I spotted a few comments that you have made in previous threads.

JoeK

homer_j_3

MM - I can think of one lender that will do the 100% on unaudited accounts providing they can prove the income being paid through bank accounts etc..

I have just done one full status so ner ner na ner ner!!!! Only kidding - I was shocked to learn this info lol..

The defaults may have some bearing though...

billymadbiker

£2000 in savings not £20,000!
I have been paying the rent for the last 3 years from my bank account - so it shows a payment of £500 going out every month.
My other half has wage slips to prove her income.

Altohugh I have prepared my accounts myself I can back them up from the tax returns I have submitted.
Alternatively, could I have these accounts adutited by an accountant now or do they have to do that at the time the accounts are done?
I know having a deposit is a good thing, we are both paying off loans at the moment and taking into account the repayments on these we have about £400 spare p/m. Added to the rent of £500 we pay we would have £900 p/m for mortgage repayments.

If we could pay off our loans (by adding them to the mortgage if thats possible) we would have £1200 p/m.

Alternitively we could re-take both loans (keep the payments the same, extend the length of repayment) and have £900 a month to pay a mortgage plus a £12k deposit.