Mortgage Advise

preciousb

Hi all

Myself and my wife are looking to purchase the house we are currently renting. We are renting it from a family member and its value is 200k

My wife is self employed and earns approx 28k per year

I work full time and earn 25k per year

I had the following questions:

1) Our credit status is not brilliant but we have no debt now. I have had a CCJ in the past and a few defaults about 4 yeas ago which i know will be showing on the credit file. My CCJ is now fully satisfied since 2008 of £450. My wife has 2 defaults again approximately 2 years old but all paid. What are the chances of getting a mortage? We have a 15k deposit so far. I understand the mortage rate may be high but i am fine with that as i just want to get on the property ladder.

2) Are there any benefits to buying a house of family?

3)What information will the mortgage provider/broker require from us?

Thank you in advance

ACG

If you could get to 15% and all of the defaults/CCJs were registered 2 plus years ago then there are lenders who would ignore them.

Anything less and it comes down to credit score really.

Have you looked at your credit files? You should get them and take them to a mortgage broker to get a better idea as to whether they will pass or not.

GMS

How much are you buying it for? Full value of 200k or a reduced price?

preciousb

Hi

It would be the full value

I also wanted to know what is requested? How many payslips etc - am not sure if i have all my latest payslips. I may have 2 of the last 3 months.

But i am sure i have some older ones too.

ACG

As an advisor, i would insist on 3 months payslips and bank statements to satisfy my compliance department.

As a lender, some will request none, some 1, others 3 months. It depends on the lender but at the higher LTV it would usually be 3.

kingstreet

We tend to ask for this;-

- evidence of identity (current passport or driving licence)
- evidence of address (recent council tax bill, bank statement, utility bill)
- latest six months bank statements
- last three months payslips
- latest P60
- evidence of deposit
- gifted deposit letter(s)
- card details for payment of fees.

We may not need all of it, depending on the lender, but we do feel a lot more relaxed about making an application when we have all this in hand and can see any issues before they arise.