Barclays Family Springboard Mortgage?

bananz

Hi there,

After thinking that our chances of ever being able to afford a house deposit were zilch for the foreseeable, my dad has surprised us by offering to pay the 10% savings deposit as well as the 5% homebuyer's deposit under the new Barclays scheme here or else pay a 15% deposit on a classic mortgage.

There are a few snags though.

First is that I went self-employed after having our twins and do not have sufficient history to be considered for a mortgage so we would be applying in my husband's name only. Our finances have always been separate as we just pay for separate bills.

Second is that he has been a day or two late making credit card payments in the past and struggles to stay out of his overdraft by the end of the month after we had some big unexpected expenses last year.

We would be looking at purchasing a property in the region of 80-100k on a 20k basic salary (although we do also get tax credits and my husband works overtime also) and our LTV would be 80-85%.

So, does anyone have any opinions on our chances of getting a mortgage? Would Barclays be our best bet bearing in mind they'll have the security of my dad's cash available to them should anything go wrong or do we have no chance with them or anyone else? I should add that we have 7 years history of renting with no payment issues and the mortgage repayments would be less than we currently pay in rent.

Anyway, thanks so much for getting this far- any help would be gratefully received!

Thrugelmir

bananz wrote: »

Second is that he has been a day or two late making credit card payments in the past and struggles to stay out of his overdraft by the end of the month after we had some big unexpected expenses last year.

Perhaps you should operate your finances on more of a joint basis. Rather than as individuals.

Do you owe any unsecured debts between you?

bananz

No we don't have any joint debts and my bill contributions are proportionately generous compared to my income which is significantly less than his! ;-)

ACG

I was speaking to my account manager at barclays about this last week.

Are the payments late or missed - the odd late payment they dont mind subject to credit score, however ANY late in 3 years i think and they wont touch it.

Thrugelmir

bananz wrote: »

No we don't have any joint debts and my bill contributions are proportionately generous compared to my income which is significantly less than his! ;-)

Not just joint debts. Any debts.

How you run your finances is up to you. I'm merely suggesting that it might not aid your cause in obtaining a mortgage.

A mortgage will be a joint liability.

bananz

The payments are just late. We both have credit cards with a total of about £1k debt. ACG- I'm imagining Barclays are pretty strict lenders- would that be a correct assumption? Does the financial arrangement in the case of this particular mortgage relax anything at all? I'm feeling awful that after my dad's generous offer, our own financial management is going to prevent him from helping us :-(

bananz

Oh and do they take previous rental payment history into account at all? My husband has been solely responsible for rent for a couple of years now, which as stated is higher than a mortgage repayment would be. Thanks x

ACG

Actually, i have given you dud info.
I have jsut read this on their website:

An applicant will be deemed to have an adverse credit history if they have or have had payment arrears/missed payments on any loan/mortgage/credit arrangement (e.g. credit card, store card, mobile phone etc), County Court Judgements (CCJs), defaults, subject to bankruptcy (discharged or not) and/or subject of an Individual Voluntary Arrangement (IVA).

bananz

Does that mean we're out then? :-(

ACG

I would say so, however have you actually seen your credit reports?

I used to work for a bank in their credit card department they would only show a late payment on the credit report if the payment was late on the first on the month when they updated peoples credit reports - thay may or may not be the case now but it could be worth a try.

bananz

Thanks a lot. We haven't got credit reports yet as we literally were just starting to think about it all, but will pull them now and hope for the best! So frustrating more mortgage providers don't take previous rental history into account. I found the Saffron FTB mortgage that accepts a year's rental payments as proof of affordability, but unfortunately it's only available in the south east :-(