mortgage newbie, asking advice

cleofish

Hi, wondeing if anyone can offer some advice really.

My partner and I are looking to apply for a mortgage, im a total newbie to this, and ive read up on martins ftb guide for mortgages, but ive got some questions.

We are looking to apply based on my partners wage with a mortgage just under his name, my credit record isnt very good and therefore it would be no good to be financially linked, although i am doing my best to rectify this, but this wont be changing my score anytime soon.

We are looking for a 90% ltv mortgage wih 10% deposit that is coming half each from both of us. My partners credit record is showing as fair to good, open credit is 1 credit card that he pays the balance off every month, currently about £100 on, and his overdraft which he does go into.
Showing on his credit file is a settled account from a couple of years ago, car finance that we paid off early and an arrangement that he had coming up to 6 years ago this june.

Firstly would this arrangement 'drop off' in june after the 6 years or will this remain? And would it be worth waiting for this to drop off before applying?
Also this settled account will this count against us?

I realise a 90% ltv mortage is not ideal but at the moment its all we are able to do with deposits.

Do you think we have a chance? We were going to arrange to speak to a broker with the thought that they would be able to advise and point us in the right direction of whom to go to, based on my partners credit record, but should we wait until the arrangement comes off before doing this, or maybe start the ball rolling by having a chat now?

Any advice greatly received! Thanks

kingstreet

Be careful. Some lenders don't like part of the deposit coming from someone who will live in the property but who isn't party to the mortgage/ownership.

Obtain copies of credit file from all three CRAs and put in front of a broker now. It can't help to start planning early.

cleofish

Thank you for the reply, what do you think would be the best way around the deposit situation?

We were going to make sure all of it was going to be in one of his accounts anyway before we started the application. Should that be ok or will they see the bank statements and question where it has come from? Do we need to tell the mortgage company half will come from me though?

Thanks

cleofish

Hi just another question, would we need to bring copies of bank statements with our first meeting with a broker?

Roughly how many would they want? What do they actually look for or check on the bank statement? and is there a best time to get this, for example the beginning on the month, when we get paid? Or would that not matter?

Thanks

kingstreet

Taking your last three months bank statements with you will be helpful. The broker will simply want to see your account conduct - no "unpaids" or "unauthorised borrowing charges."

Being in and out of a small approved overdraft is normally not a concern.

I suggest you speak to your chosen broker about how best you approach the deposit issue.

cleofish

Thanks for the advice, I think ill make an appointment just to have a word and ask some questions, ill take bank statements and credit records as well.