First time buyer needs some advice!

Abu-Dina

Last weekwe found out that our landlord who has been living in Australia for the last 5years is coming back to the UK and consequently we've been given the minimum 2 months’notice period to leave the property. We've been renting (paying off their mortgage)for the last 3 years so now I feel is the time for us to buy our own property.

Oursituation is as follows:

[*]Family of 4, two kids aged 3 & 5
[*]Total credit card debts (roughly £1500)
[*]No other debts (except for our student loans! lol)
[*]£20k deposit
[*]One income (£33k per annum)
[*]My credit score (Experian = 682, Wife = 970)

We haveuntil the 12th of May to leave the house so I would love to sort out a mortgagebefore then so we can just move into our new home. I'm not sure if this is evenpossible?!

We foundthe property we want and we have already put in an offer of £16000 so with ourdeposit of £25000 it means we need to get a mortgage of £135000. Somehow I feellike I won't be able to get this given my bad credit score?!

Wouldlove to hear your advice?

GMS

Ignore the credit score, it is irrelevant.

Get copies of your credit files from Experian, Equifax and Call Credit. £2 statutory ones are fine. Check the information contained in them to ensure correct.

Are you aware of any adverse credit? Any CCJ's, defaults, missed payments etc?

A broker may be useful for you if you are unsure

Abu-Dina

GMS wrote: »

Ignore the credit score, it is irrelevant.

Get copies of your credit files from Experian, Equifax and Call Credit. £2 statutory ones are fine. Check the information contained in them to ensure correct.

Are you aware of any adverse credit? Any CCJ's, defaults, missed payments etc?

A broker may be useful for you if you are unsure

I don't believe we have any CCJs or defaults but I do have one missed payment on one of my current accounts within the last 12 months. But that's just based on my Experian credit report.

I will need to get my reports from the other two credit reference agencies.

dimbo61

Have you been paying a Letting agent your rent every month ?
The Landlord should have paid TAX on his/her income !!!
Not sure you will be able to find and buy a property in 2 months ( very tall order)
Has the Landlord registered your deposit and give you the information?
The landlord needs to serve a VALID S21 asking for the property back now if you want a reference from your Landlord you need to look at moving out by the 12th of May BUT if you have no place to go then the LL will have to go to court to evict you which could take a few weeks/months.
The Landlord may have lost money every single month for the last 5 years we do not know.
Has the letting agent looked after the property? and taken care of any repair needs, did you have an annual gas safety check+ Certificate?
Did the LL/LA do a proper inventory check with YOU when you moved in ?

kingstreet

Do you have other income, such as tax credits?

Based on the data you have given, a lender's affordability calculator is only returning a maximum mortgage of £115k for a joint application with a non-working spouse and two children, over 25 years, over 30 years £122k.

I've included child benefit at £120 per month and assumed a top level "A" pass credit score.

You've made an offer already? How did you know what mortgage you would be able to obtain?

Abu-Dina

dimbo61 wrote: »

Have you been paying a Letting agent your rent every month ?

Yes, every month for the last 3 years.

dimbo61 wrote: »

The Landlord should have paid TAX on his/her income !!!

Don't know but I assume so.

dimbo61 wrote: »

Not sure you will be able to find and buy a property in 2 months ( very tall order)

I know I know, that's what I keep telling myself. It's just not enough time. Luckily we can move in with in-laws for a few weeks if need be so all is not that bad or is it?!

dimbo61 wrote: »

Has the Landlord registered your deposit and give you the information?

I think so. I got an email from the letting agents a few weeks back about moving the deposit to a different deposit scheme or something like that. But we've lived in the property for 3 years and they've hardly done any maintenance apart from a couple of things recently (but that's because the landlord probably knew they were coming back so they did it for themselves not for us!)

shonzyd

Think you need to listen to Kingstreet's valid advice and check the affordability.

Are you using a broker and do you have a DIP from the mortgage provider to indicate how much you could borrow. If not you probably should have done that before putting an offer in.