Can we get a mortgage?

Cloudreality

Hi All...

You seem like a friendly bunch so decided to register and give posting a go :-/

My husband and I are hoping to move house in order to relocate near a good school for our son. In order to do so we will need a mortgage of about £170,000. His parents are willing to lend us about 30% for a deposit. We are currently home owners with no equity in our current house and so would like to hold on to it and rent out as we currently have a good deal on our mortgage with West Brom and can make a little money from renting it out.

The big "but".... my husband had two ccjs registered against him just last year. My credit is 'fair' which is a hangover from the days when I was a silly student.

Basically is there any chance of us obtaining a mortgage whatsoever? Does it help that we own already and can show perfect history of paying our current mortgage for the last 4 years?

Thanks in advance ...

Dave_Ham

Have the CCJ's been satisfied and how much were they for?

Cloudreality

1 for £5000 and 1 for £3000 my husband was in financial difficulty so we just struggled through and made sure we paid our mortgage if nothing else. One is now satisfied and one we are in the process of doing so

Dave_Ham

This will be incredibly tricky.

The deposit size will help, although with one CCJ unsatisfied and the recent nature of the CCJ's mitigates this.

Has something significantly changed in your circumstances this year to be ready to buy a house.

Do you earn enough to put it in sole name for the first couple of years?

Cloudreality

Yes I was on maternity leave at the time but now working again and my husband is back in permanent employment. I had small amounts on credit cards and the providers were really helpful when I couldn't pay but as my husbands amounts were higher I felt as though they were much quicker to move to ccj in a matter of months unfortunately.

I don't earn enough for sole ownership. We can get £60,000 deposit max and a guarantor if this would help

Thanks for your replies

Dave_Ham

Maybe, being realistic this will be hard work.

Suggest you get your credit files from Experian, Equifax and Call Credit files and get to a decent, experienced broker.

With the deposit and the support of your family, in addition to decent rationale on why you struggled last year then there is enough to go at certainly...

You may need to think about your current property though, as depending upon the detailed affordability many of the specialist lenders may not like the newly proposed buy to let option. I personally may understand the opportunity, the lenders do not necessarily like these situations...

Best of luck

Cloudreality

Thank you very much, I will order our reports and set about finding a good broker

Thrugelmir

Cloudreality wrote: »

Does it help that we own already and can show perfect history of paying our current mortgage for the last 4 years?

As you said, was at the expense of other creditors.

Did you agree an arrangement to pay with your credit card companies?

As this will reflect as a default against your own record.

Personally I suggest that you get your own financial affairs in order before looking to move house. Letting your existing property in which there's no equity. Is just increasing the risk even further. Not only to lenders but you as well.

Not wishing to sound harsh. Suggest you pop over to the Debt Free Wannabe board. May inspire you to have that light bulb moment and focus on the way forward.