Any chance?

Sandy444

Hello,

Just wondering if anyone could give us some idea of whether or not it would be possible for us to get some kind of a mortgage or if we (1) will be unable to secure anything because of past credit issues and (2) we are too old and are therefore going to be renting for the rest of our lives.

I will be 58 this year, my husband is 60.

Own business run as partnership. Operating for 20 years.
Net profit: 78K
Accounts available

Deposit available 100K

Past credit issues:
Arrears with last mortgage. Drops off credit record Dec 2013
1 late (by a day!) credit card payment in 2011

Renting since Nov 2007 with all rental payments on time

£963 pounds owing on one credit card (£10,700 pound credit limit), could pay this off and also think we should reduce this limit as we don't really use the card.

Have copies of Experian credit report. I realise these scores don't mean very much as lenders have other ways of assessing creditworthiness but my husbands score is 999 and mine is 974.

Thanks for any advice you can offer.

ACG

How much are you hoping to buy for?

Im presuming your not looking to buy something for £400k plus?
If thats the case i cant see any reason why you cant get a mortgage, but you might not be looking at the market leading rates, i would say something under 5% would be possible though.

Sandy444

Thanks for your reply. I think we'd be looking at something around the 200-250K mark if possible.

ACG

You'll be fine then.

Might be worth a chat with a mortgage advisor, but i wouldnt worry too much based on the above.

Sandy444

Thanks again for your advice. Hope you don't mind another question.

Does the age factor make the rate higher or is it the credit problems. If it's the credit problem would we be better off waiting till the arrears drop off our credit report. Thanks again for your advice.

Annisele

I don't think age makes a difference to the rate, but it does make a difference to the term you're allowed to borrow over (and hence affordability).

Some lenders have a maximum age of (say) 75. That would give you a term of around 15 years, so lenders will want to see that you have enough income to repay your debt over a 15 year period. If you were ten years younger you might get a 25 year term, and so be able to borrow more. Hope that makes sense!

Lenders will also want to know when you're planning on retiring. If you plan to retire at 60 and have no pension income, then ofc you'll really struggle. If you plan to work to 75, it should be easier.

bigadaj

OP just one query in relation to t he arrears on your last mortgage were these paid and if so when, as mortgage debt can remain liable for payment for twelve years rather than six, hopefully this is all ok.

Sandy444

Mortgage arrears were all paid and settled 30 Nov 2007 so assume this will drop off our records on 30 Nov 2013. Please correct me if I'm wrong. Thanks.

ACG

The age thing wont make a huge difference - it might affect how long you can have the mortgage over, which in turn will make a difference to the repayments, but it wont affect the interest rate.

It will be be down to the adverse, the longer you leave it however reduces the term of the mortgage. The more i read your original post, the less i think it will have an affect. There will be some lenders who wont lend to you as having payment problems on your mortgage is seen as worse than payment issues on say a mobile phone. But in the main i think you will be fine.

Sandy444

Thanks again for your reply. So are you saying that we should probably go ahead and just apply or should we wait until December when it drops off our record?