Will I get a mortgage?

milly456

Hi,

Is it possible to get some advice please? I am wondering if someone in my financial position would be granted a mortgage with their current commitments?

I am currently in the process of coming off of one mortgage and am looking at other properties, however dont want to get too into it if I will not meet the standards needed.

A little about me-
Salary- approx £51000
net PCM income of circa £2780
commitments- £23000 loan- approx £22000 left
no other credit card or car debt.
Savings of approx £20k

Credit history- one red on Experian (a second bank account where the overdraft was recalled as was forgotten about when moving a house- fully paid and settled, was approx 3 months late and finished in 2009). Still have current account with overdraft and savings account with fairly large amount with same bank as this account. No other missed payments on any account or card or loan in last six years.

I would ideally like to purchase a property for approx 175000 with a ten ish percent deposit- anticipated savings of approx £20000 at time of purchase. These can be tracked and are not linked to the loan.

Any thoughts, and thanks for having a look

Mils

Thrugelmir

The loan will score heavily against you. Was the purpose of the loan to consolidate debt previously?

milly456

Hi,

Yes it was, then some extra work options paid off just after.

Thanks

Mils

milly456

Hi,

Is there any further opinion from anyone- should I look for a less expensive property?

thanks

Mils

GMS

Try some affordability calculators on various lender's websites to get an idea of affordability.

The loan will have a big impact.

Alternatively speak to a broker to see how you could proceed.

milly456

Hi GMS

I have had a look and the website affordability calculators seem to suggest it is viable- with the exception of the loan I have no other debt and have a very secure job (10 years +) with a large pension amount- thats why I am confused

Dave_Ham

Affordability should be ok.

Only issue is how exactly the bank account was reported to the credit agencies.

If there is an official default it will be an issue, if they are just consecutive late payments then you should be ok with many lenders just may not be with the best buy boys....

milly456

Hi Dave,

it was just (just sounds odd) four late payments, not defaulted or anything else and is shown as settled. I have credit checked myself and am around 800 on experian and 440 on equifax, though I believe that the scores are supposed to be a bit of a gimmick. The only red is that one above mentioned, everything else is green and the only point they mentioned is that I have only been on the electoral register for this house for slightly under two years.

Thanks for your advice

Mils

Dave_Ham

I would be confident of a lender accepting you (based upon information provided) although your credit score will be ok, rather than great so you are unlikely to get best buy rates but highstreet rates..

Hard to be more specific without knowing more and seeing full sight of the case and credit files.

You can get an Agreement In Principle pretty quickly though and you are correct the scores are a gimmick....

milly456

Thats excellent news, thanks very much Dave. I will carry on trying to get as much paid off prior to any application but I really do appreciate your advice. Thanks to everyone else for their input- this is one of the friendliest forums I have seen.

Thanks
Mils:T