Mortgage advice...please help

foreveradevil

Hi,

I have a credit score with experian of 750 ish due to 2 defaults which are satisfied but will not drop off until 2014. My partner has a small house which she wants to let out and get a joint mortgage with me. Her credit file is top notch and we have found a house we really like and can afford to raise a deposit of 15% so would require a mortgage of 85%ltv.

We are both teachers and have a combined income of over 60k with pretty much no outgoings apart from the current mortgage on my partners house.

We have been working with a broker who now says he can only get an 80% ltv lender after originally saying he thought it would not be a problem. Does anyone have any advice on where we could go next?? or am i kidding myself and it just can't happen?

Thanks in advance.

Rob.

kingstreet

What's the value and mortgage of the other property, the one to be let?

Thrugelmir

Why not sell the existing property and have a minimal mortgage?

Otherwise wait for the defaults to lapse or save the additional 5%.

foreveradevil

Thrugelmir wrote: »

Why not sell the existing property and have a minimal mortgage?

Otherwise wait for the defaults to lapse or save the additional 5%.

House is only worth 60k and mortgage is 56k so thought about selling but market isn't great at the moment and ideally would like to keep to rent as better in the long run.

The reason we want to get a new house is to start a family so waiting another 2 years is unimaginable at the moment...just wondered if anyone knew something or someone we could try

Thrugelmir

Given your income and level of debt to service/repay. In 2 years you should be able to make serious inroads into the existing mortgage.

Property letting does not give a guaranteed return. Despite what many people believe. Neither is it a investment, but a business. So best to crunch the numbers fully. Also have an exit plan.

Dave_Ham

Broker issue here, I can imagine the expensive usual suspect lenders are being offered up with a 20% deposit.

This is my specialist subject and would expect this to be achievable given your defaults being registered in 2008 (?)

The defaults will absolutely have to be satisfied to get any further at 85% LTV

Also, be interested if OH has officiail consent to let on her property.

Get your Experian, Equifax and Call Credit reports and put them in front of a decent broker.

Best of luck

foreveradevil

Dave_Ham wrote: »

Broker issue here, I can imagine the expensive usual suspect lenders are being offered up with a 20% deposit.

This is my specialist subject and would expect this to be achievable given your defaults being registered in 2008 (?)

The defaults will absolutely have to be satisfied to get any further at 85% LTV

Also, be interested if OH has officiail consent to let on her property.

Get your Experian, Equifax and Call Credit reports and put them in front of a decent broker.

Best of luck

defaults are satisfied and OH has permission to let. You think maybe try a new broker? any suggestions?

Dave_Ham

Definitely think so, I would anticipate the current broker wants to go to the usual suspects at 80% LTV with 5.99% rates and £2k fees.

Likely an experienced broker would put this to a Building Society as better rates and many underwrite manually...

Best of luck