Will I get a mortgage?

mishmash

HI
After 10 years together we have finally decided to settle down and get a house together:D . We are bringing to lots of children together from previous rekationships, plus 1 we have had between us. So we need a really big house:eek: .

We both have good equity in our properties to sell, he has about 80k and I have about 90k. He is self employed and earns about 20k per year. I'm a civil servant earning 35k.

The houses we have looked at (that would be big enough), are priced about £400.000, which I think we could stretch to.

My partner has a very good credit history, mine is a bit dodgy. I got into a bit of trouble a few years ago and am now getting straight. Basically I have 3 defaults, 1 to tesco credit card nearly paid off, 1 to a finance company regarding a warranty I thought I had cancelled, I saw the default on my file and contacted them to make payments as they had not had not chased me. I am now paying this off and the last one is for nat west credit card now settled.

I have a few late payment things but have never been late or failed to pay my current mortgage with Natwest.

We have a little bit of debt around 4k each, I also have a bit more income than my salsry (child benefit and maintenance) which gives me another 6k a year. My partner can earn more 20k is a low estimate.

We are hoping to put 170k down and borrow 230k.

Can anyone tell me if I would be considered okay for this, is there anything I can do to improve things., or am I just going to have to go to a dodgy dealer??

Any help offered would be great. Thanks in advance.

Mish

herbiesjp

You are borrowing 57.5% of the property value which is great as you have this huge deposit

You need to borrow £230k which is 4.18 times your joint income of £55k - that does not take into account and extra self employed earnings or the other benefits

You have a small debt in the background, but overall, the figures look fine.

I would suggest just looking at what £230k would mean in terms of mortgage payments to be 100% sure.

The only warning I would point out is the credit history - it is by no means disastrous, but some lenders will not look at you even with the slightest blip on your credit file.

Have you got up to date copies of your credit files? If you have let a fee free whole of market adviser have a look at them and see what they can come up with.

You may be lucky to get a mortgage agreed on standard rates - all depends on how long ago all these "blips" occured and the amounts involved

HTH

mishmash

Thanks

We have looked at the cost of borrowing and will be able to make the payments.

I do have up to date credit reports, and I was going to show them to a family friend who is an indipendant mortgage advisor ( although I do feel embarrassed!!).

The defaults are between 1 and 2 years ago, 1 was for £900 ( now clear) 1 for £3300 ( nearly clear) and the other for £800 ( soon to be clear).

I have tried to look on different sites that give you a rough guide (without doing a check) but they cannot find any mortgages. I just feel a bit worried that the problems I faced a couple of years ago will come back to haunt me. I was on Maternity leave (Half pay), when the ex stopped paying maintenance and working family tax credit messed things up. I basically was over a grand a month worse off and really struggled for a while.

As i say it is all sorted now but I am worried that I will not be able to move on.

Thanks for your advice.

Mish x

MortgageMamma

There are plenty of lenders who would do this on their prime lending criteria so you have no worries. does your partner have acounts to evidence his earnings as that would be useful too, otherwise you could possibly look at a self certification mortgage

Have you marketed your respective houses and begun looking properly yet?

mishmash

Hi
Thanks, yes he has accounts, so I think we are ok there.

We are in the process of painting and tidying, we are hoping our houses will be up for sale by the end of the month.

I have been doing my own bit of research, to look at the competition and how much similar houses are going for. I have also been looking at suitable properties for our brood.

I know I was a bit premature but I have found a stunning property, which would be great for us all and I went to view it. I have fallen in love!! it has been up since last August and has been reduced from 425 to 400. I am trying not to get my hopes up as we have to sell our houses yet.

I am just a bit worried that when it comes to it the mortgage people will say " computer says no"

Thanks
Mish x

herbiesjp

You should be able to find pelnty of lenders - there are some "computer says no lenders" but there are stillplenty that are flexible enough to agree the deal for you.

Having the accounts just strengthens the choice of lenders for you

chodges84

A quick question. When people say 'having accounts' what exactly does that mean.

I'm self employed and obviously have to keep my accounts to complete a Tax Return. My record keeping stretches to a pretty stringent Profit/Loss acoount showing where all revenue comes from, stock value, and where the expenses have gone. I've got the Usual Gross and net profits for all to see.

One thing I haven't got is an Accountant as I am capable of doing them myself. Could this prove troublesome?

Madjock

If you don't have an accountant most lenders will ask to see your SA302s.