Best mortgage deal where parents can help out

koneko

Hi Everyone.
I'm looking for some advice as to the best path to take for my partner and I to obtain a mortgage.

My partner has a good credit rating, he had a ccj when he was very young, but this was 10 years ago. Mine is not quite so good, I got in trouble when I lost my job in 2008 and have 3 defaults registered at middle/end of 2008. The defaults have all been settled and I have no missed payments etc in the last 3 years.

We have a deposit of around 12k currently, and will be looking at a property of around 200k value. Originally we had planned to save for another year / year and a half, however my parents have said that they want to help us as they have recently inherited money when my grandmother passed away and they don't want us to have to wait years for our inheritance when it could help us now.

I'm not sure which is the best option between gifted deposit or one of the mortgages with a linked savings account. My parents are open to ideas and I said I would see what I could find out. I did look at the Barclays springboard mortgage but suspect that I wouldn't be accepted with defaults registered in the last 6 years.

lawriejones1

Pretty much everyone will say the same: speak to a broker! In these situations they really do help.

Nationwide are currently appearing to be quite good, but speak to an expert...

ACG

You need to speak to a broker really.

I dont think the springboard is the way to go, but it might be possible to do it through that.

Depending on how much your parents are able to help by - if you can get to a 15% deposit im pretty confident you will be able to get a mortgage.

koneko

Hi, thanks for the advice. Is an independant broker the same as an Independant Financial Advisor? My dad has a very good one who we are planning to make an appointment with, but not sure if its the same thing.

We should be able to get to 15% I think, will that help with the fact that I have adverse in the past?

ACG

What adverse do you have?
I suppose i should have asked that at the outset.

Could you just put down, what you have, when it was registered and amounts and also whether they have been cleared.

I dont think Financial advisors will really be interested in this. Theyre more pensions/investments and farm mortgages out to a mortgage advisor. If the adverse is bad then you may need a specialist mortgage broker. But with a 15% deposit, depending on how bad the bad credit is, you may be able to get a mortgage.

koneko

The adverse is 3 old defaults, all are satisfied. I only have my mobile contract and a credit card now which is used for monthly expenses and paid off. Barclays (card provider) keep upping my credit limit so assume they approve of how I am managing the card.

Defaults are:
Credit Card - August 2008 - £484
Loan (taken out to pay for my car, but not direct car finance) - October 2008 - £9038
Graduate Overdraft - November 2008 - £352

ACG

If your incomes support a mortgage and you have a 15% deposit, im pretty sure a broker will be able to help.

A broker being a mortgage advisor. Guarantor mortgages wont be much use i dont think.

koneko

I should mention, one thing that confuses me is that the loan and credit card were passed to a collection agency. Everything was then dealt with through them. On my credit report, it shows as 2 defaults, both with the same date, one with the original lender and one with the collection agency - assume this makes it look worse than it is? Is there anything I can do about that?

ACG

It might not stop you getting a mortgage due to the age of them.

koneko

Thanks ACG, we both earn £27,500 a year (which is how I've been able to pay off over 10k of debt and then save half the mortgage deposit) so I don't think affordability will be our issue. We have no loans or car finance etc. I'd imagine that without my adverse, they'd be biting our arms off.

ACG

If you didnt have adverse then yes you would have many more options available to you.

But you do, so its just a case of getting on with it and making the best of the situation. If you get your credit reports and see an advisor im sure you will get a mortgage.

Its not all doom and gloom.