Mortgage with default but high earner

neverdespairgirl

ACG wrote: »

(I hope your not an English teacher... i will no doubt be in the bad books!)

Yup, because it should be, ".....you're not an....."

divorceishard

GMS - point noted but to be honest there are many ways I could get around this without 'lying' as you say. For example the rent payments could be changed to my other sons account, as we are both tenants, I was just trying to reduce my liabilities 'on paper' each month, but as I said your point is valid and noted.

Thrugelmir - again I think I've misconveyed what I meant, I have no intention of working past 65 but my pension is fairly large an would almost cover twice the monthly payments that a 200k mortgage entails, and also within 5 years it wouldn't be in my name anymore as my son would have taken my liability 'legally' by a transfer of mortgage, but that's further down the road and right now it's about getting the mortgage in the 1st place. Also your comment about a guarantor having no bearing I believe is false. From what I have read about guarantor mortgages the whole point is to enable the main applicant to borrow more, but I may be wrong.

Annisele - thanks for your info it's very helpful, my whole point about the equity in the other house was more as security as I have 2 defaults rather than to raise money, but as its so complicated I think that idea will go out the window, thanks again

ACG - thanks again for some really good info, obviously lying on anything is not what I want to do what I meant was I can reduce my liabilities 'legally' on paper. And your right my pensionable income I would hope wouldn't be a problem. An no I'm not an English teacher but given the level of English my students have, yours is perfect. The thing about being a teacher is you get to see each generation deteriorating, and these are the workers of the future!!!!

I guess in general what I want to know is with my 2 defaults on my credit file is this going to bar me completely from getting a mortgage? I know I'd have to put more deposit or pay higher rates but this isn't the issue I just wanted a rough idea of who to approach and what kind of hurdles I might face, anyone who has or has advice on getting a mortgage with defaults could you let me know what you think.

As for my other house ill leave that out of the equation it was just to see what options I had as I'm not an expert.

Thoughts welcome an appreciated....

ACG

Defaults and a 10% deposit would be difficult - not impossible but limits your options.

15% opens you up to lenders i know wouldnt have an issue with the default - its just a case of the rest of it fitting with them.... all of these issues on their own are not problematic, all of them together causes the problems. Dont worry about the default, its not a problem in itself. 20% makes it easier still.

The lenders im thinking as a starting point are not on the high street. Which is why im thinking a chat with a broker.

A guarantor mortgage as you say does allow the lender to to be a little more lenient with their income multiples, but with your defaults it probably puts a stop to that. Theyre also only really there to add a little extra, not the amount you will need to get this through.

divorceishard

ACG - when you say all of them together causes the problems, what do you mean? I thought I only had one issue, well two, which was the 2 defaults. 15% deposit or even 20% wouldn't be an issue. Also it's been a while since I got my mortgage but is the mortgage fully agreed before I look/buy the house? I've heard of agreements in principle falling through at the last moment I'd hate to find a house, have an offer accepted and then it fall through. Also do you know of any good brokers who deal with these kind of issues? I'm in the London area.....

ACG

The general process is you find out whats affordable (or in this case if its possible), you can then put an offer in and when its accepted get an agreement in principle - effectively that is just a credit check and an agreement that based on the info given and you being able to back it up they would lend you the money.

Agreements in principle can fall down if theyre a soft footprint credit search or if someone is self employed and does the books in a tax efficient way that lenders get confused by it.

The issues i can see at the minute:
- Your age - this affects the term and lenders that will accept it.
- The defaults.
- The fact your going on a mortgage and not living in the property.
- Have another property in the background (this tends to cause an issue where the new property is above 75%).
- Renting another property.