Help - First Time Buyer!!

kingstreet

First, you have to find a lender willing to accept a guarantor, and there aren't many left.

Then, you want 90% with a default.

The typical reason for a guarantor is you need to borrow a little more than what the lender really wants to lend. With adverse credit, you're likely to be declined at 90% before the question of a guarantor is even raised.

Clarky2

Ok, I have been reading around and many people seem to find luck with mortgages with an older default. From what your saying I get you believe it is virtually impossible. What would you suggest I do?

Clarky2

Also I have taken out 2x Loans and a credit card following the default.

kingstreet

I'd find a good independent or whole market broker. Let them take a look at your overall situation by completing a factfind with you and get a realistic idea of what you can do, when and how much you'll need.

Lenders want to lend at 90% to squeaky clean applicants. There is less money available than there are applicants, so they can be picky.

Clarky2

Ok thanks, I will also try and push more of a deposit.

Clarky2

Does anyone know if a 30-35year mortgage is a better option for someone in their early 20's?

kingstreet

Better?

That's a purely subjective view of one individual, who may be in a different position to another.

The required monthly payments will be lower, but the amount of interest payable should a mortgage run over that whole term, would be much higher.

You can, of course, take a longer term at the outset and look to reduce it when remortgaging, or by making voluntary overpayments.

Clarky2

Are lenders likely to accept a higher mortgage term, generally?

kingstreet

Lenders have published maximum terms. It could be 35 years, it could be 40 years.

As long as you don't try to exceed the maximum, you should be fine. If you try to do longer, they'll tell you what the maximum is.

Clarky2

I see, thank you.