Mortgage possible?

tomcress2000

Hi,
I'm wondering if anyone can offer some advice, with just discovering a baby is on the way and would like to buy house sooner than was planning (we are currently renting) Having checked the credit reports I'm not sure if it will be possible.

Our combined salary is £88500
I was hoping to borrow up to £225000 with 10% deposit.

My credit report is clean, my wife has a default of £950 settled from 4 years ago.
Also a couple of late payments on a loan from around 4 years ago aswell.

I will be arranging to see a broker in few weeks, but just wondering if anyone has any thoughts now about how possible it might be and if it is possible what sort of interest rate we would be looking at.

Many thanks

opinions4u

Possible.

Bigger deposit would help.

See a broker.

Boab74

I would think you would get a mortgage without a problem, banks are lending (well the one if work for is) but the rates aren't always the best.

For a tracker on 10% deposit you would be looking at 3.5% or above and for a fixed you would be looking at 4.5% and above, it depends on how the lender views your credit rating and other financial commitments.

tomcress2000

Thanks, i should add we have no loans or unpaid credit cards just this default and late payments.

Dave_Ham

Ok,

Firstly get specifically your OH Experian, Equifax and Call Credit reports. The £2 ones are fine.

Check the date the default was registered, this is the key date as they come off the report 6 years after being registered.

At 10% deposit (and forget the rates provided in one of the posts above as they are not accurate at 10% deposit)

You could take the mortgage in just your name, depending upon income, deposit source and your own feelings about this.

Definitely a broker case and definitely get your credit files.

Best of luck

Hello123_2

Getting a mortgage shouldnt be a problem but be careful not to take on too much if you're expecting a baby!

What are your wife plans when baby is born? My advice from personal experience is to make sure you can afford repayments on one income...good luck

tomcress2000

Thanks for the replies. Does having a 15% deposit rather than 10% make much of a difference. Obviously it can only help but just wondered how much difference it could make, to the interest rate offered also?

Also at what stage should my wife being pregnant be mentioned during the mortgage app process, assuming we can get a mortgage. If completion happens before a couple of months from due date do people still mention it?

We have ordered the remaining credit reports.

Thanks again

maninthestreet

What is going to happen to your wife's income once the baby is born?

Dave_Ham

Bigger deposit will always help.

In cases with specialist lenders 20% deposit is often the trigger, but 15% is better than 10%

Always mention as they will want provision for childcare and if they do an employers reference it is unlikely to end well..


All the best...