First Time Buyer Advice

edited 30 November -1 at 1:00AM in Mortgages & Endowments
7 replies 821 views
BBrown1989BBrown1989 Forumite
7 Posts
edited 30 November -1 at 1:00AM in Mortgages & Endowments
Hi,

A bit of help will would be gratefully appreciated on the below matter from mortgage broker/underwriter

Me and my Girlfriend are first time buyers we are looking at a property of £250K with a 25% deposit plus enough for fees etc. I have checked both our credit reports on experian and we have a 999 rating and no missed payments etc. I earn 34K and the GF is on £27000 not including any bonus.

However I made a very stupid mistake last summer (6/7months ago) by using by credit card for betting purposes not realising firstly that this was a cash advance and secondly not realising this information showed up on your credit report. Basically the amount in total on cash advances was about £4K with about 30 different advances over a three month period. These were all paid off straight away, but obviously still shows up on my credit report. Is this going to cause our application to be rejected?

Since then there has been no cash advances etc everything is clean payments have been made in full.

Please could someone help and clarify on this position.

Any help is appreciated.
Thanks,

Replies

  • ACGACG Forumite
    21.5K Posts
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
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    Whos the lender?
    Tell your advisor and they can run it by the lenders before they even make an application. I'll be honest in that ive never had this sutuation with any of my clients but witha 25% deposit i wouldnt be overly concerned (but im not the best person to answer the question).
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • We haven't got an agreement in place with any lender currently, however we are going to apply shortly.

    I appreciate your reply so thank you.
  • kingstreetkingstreet Forumite
    36.8K Posts
    Tenth Anniversary 10,000 Posts Name Dropper Photogenic
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    No experience of this, sorry.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • Is there any other advisors or brokers have had experience of this?

    I am getting really worried now that we will get rejected because of my stupidity last summer.

    Like I have mentioned previously my report looks fairly clean with all payments made on time all loans paid back and settled. The only isssue is that it shows these cash advances on the report!!
  • Andrew_123Andrew_123 Forumite
    14 Posts
    Part of the Furniture First Post Name Dropper Combo Breaker
    Hello, I'm looking to buy a £220,000 flat and have a decent deposit of £65,000 however I only earn £25,500. Is it likely that I will be able to afford it?
  • kingstreetkingstreet Forumite
    36.8K Posts
    Tenth Anniversary 10,000 Posts Name Dropper Photogenic
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    You should open a thread of your own, not hijack another member's current one.

    A salary of £25,500 means a maximum of £127,500 based on the highest income multiple I can think of, so unlikely you'll get over 6x salary.

    The maximum would also be less if you have ongoing credit commitments or financial dependents.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • So we have had an offer accepted on a house for £250,000. We managed in the end to put down a deposit of 30% so will only be borrowing £175,000.

    The broker has got us a mortgage certificate though Abbey Intermediaries (Santander). Does anyone have any information on how strict they are etc? What are they like with the Credit Card Cash Advances? As I have said previously through my own stupidity I took out about 4K across 4/5 months for online gambling transactions.

    But since I realised my mistake I have cleaned everything down, and I have never missed a payment or defaulted.

    I did have two loans with Santander (Car & Personal loan) which were settle don time.

    I currently have no overdraft and one credit card (barclaycard which I have had for over 3 years) the MBNA one with the cash advances was settled in October.

    I just am still really worried that the lender will look at that and reject straight away.

    Any more help or guidance would be appreciated
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