A bit of advice please

someadviceplease_2

Hi MSE,

Although I've been registered a while I am relatively new to the forum so please go easy

Me and the missus have just returned to the UK after spending five years living in Australia. Prior to leaving for Australia I defaulted on a couple of debts that have since been settled and I am now happy to report I am debt free. Not boasting, just glad to have the considerable weight of debt off my shoulders.

Anyway, we did reasonably well in Australia and have come home with a bit of money in the bank. Right now we are renting, and will continue to rent until August of next year. After this time we wish to purchase a home here in the UK. We would be looking at a property for around the 160k mark. We have over 40% as a deposit based on this.

I should also add that I am currently not working, and the missus is about to finish working as she is pregnant. My plan is to take some time of with the missus to help her with our newborn and use the time in between to improve my skills (I work in IT and am working towards a considerable certificate). My plan is to try and pick up some work the end of February/beginning of March.

Assuming I am able to pick something up the beginning of March, I'd imagine my income would be around 40k per year based on what I do and what is out there at present. I understand that this would have to support not only the mortgage but my wife and child.

My question is, assuming I get a job in March and apply for a mortgage let's say July/August, are there any banks/building societies out there that would consider us?

I don't have any credit or store cards, and all things being well, won't have them in the future because of what happened in the past. The defaults were all settled in 2010 and all are showing as settled, although not in full as they were negotiated settlements, on my credit file with Equifax.

Apologies for the life story, I'm just looking for a bit of advice as to what we can expect next year, and if realistically we are looking at renting a little longer!

Cheers

ACG

Based on the figures you have given you should be fine (this is based on you wanting to borrow 60% of £160k)
The main issue i can see is your employment, most lenders would want to see you have been employed for 6 months before looking at offering a mortgage.

Not all lenders but a fair few.

You may well need a broker for this, but i think it would be possible.

Thrugelmir

someadviceplease wrote: »

The defaults were all settled in 2010 and all are showing as settled, although not in full as they were negotiated settlements, on my credit file with Equifax.

Might preclude you from approaching a number of financial institutions. Settling in full is always the better option if possible.

GMS

Take some credit out to build a profile. Credit card for small purchases and full repayment each month, bank account etc.

Broker may well be useful for you here.

Saying that, after winter here you may well be back on the firsy flight to Oz!!

someadviceplease_2

Thanks for the prompt reply guys.

In hindsight, had I had the funds I would have settled in full, but at the time just wanted them off my back. Settlement was about 80% but I guess that isn't relevant.

Thanks again

someadviceplease_2

@GMS

Can't say I'm not tempted....have to put family first though

Thrugelmir

Did you leave for Oz with unpaid debts in 2007?

Why did it take until 2010 to come to a settlement?

someadviceplease_2

Yeah, I left in 2007, still paying them. Then missed a couple of payments whilst in between jobs over there, silly I know. Actually missed quite a few if I am being honest. Eventually they offered me a settlement offer. At the time we were planning on staying there so getting a settlement of a lesser figured seemed like the best option at the time. But with the wife then getting pregnant we decided we needed to be back home with the family. How things change.....!

cos_2

I admire your honesty! So here's a bit of my life story:

Back in 2000 I separated from my wife and our mortgage payments went to hell in a handcart. We were also dealing (paying!) with a protected trust deed (or IVA in England) and my credit rating nosedived. Quite rightly, of course.

Well, in 2003 I remarried and, three days later, moved in to our new house. (New to us, not brand new.) Although my credit standing was shot to ribbons, I managed to get a loan from a sub-prime lender, Kensington. If memory serves me right my rate was about 7.5% when the high street lenders were looking at around 5%.

I bought a four year lock in and at the end of that my rate had turned over 10%, but then I found ING and have had their base rate plus .9% ever since.

My pay,back then, was equivalent to what you aspire to, so I think you'll have no problem getting a mortgage. Perhaps not the cheapest, but you'll get one.

In my humble opinion, of course

GMS

cos wrote: »

I admire your honesty! So here's a bit of my life story:

Back in 2000 I separated from my wife and our mortgage payments went to hell in a handcart. We were also dealing (paying!) with a protected trust deed (or IVA in England) and my credit rating nosedived. Quite rightly, of course.

Well, in 2003 I remarried and, three days later, moved in to our new house. (New to us, not brand new.) Although my credit standing was shot to ribbons, I managed to get a loan from a sub-prime lender, Kensington. If memory serves me right my rate was about 7.5% when the high street lenders were looking at around 5%.

I bought a four year lock in and at the end of that my rate had turned over 10%, but then I found ING and have had their base rate plus .9% ever since.

My pay,back then, was equivalent to what you aspire to, so I think you'll have no problem getting a mortgage. Perhaps not the cheapest, but you'll get one.

In my humble opinion, of course

So you got a mortgage in the boom days of essentially impossible NOT to get a mortgage and used the time to allow your adverse to drop off your credit file.

The mortgage world is as far removed as possible since then. With all due respect you story has no comparison to the OP's requirements.

A monkey could have secured a mortgage on a shed with a leaky roof in 2006, employed or not! Not the case today.

Not really helpful to offer irrelevant experiences to somebody looking for guidance.