Potential FTB advice

peytonx

Hi All,
Myself and husband would like to buy our first house together shortly, but we have just found out that on my OH experian credit report he has 8 missed payments from a debt in 2007, which was in dispute and only settled in Novemeber 2011. Other than that particular one our credit reports are good, we have not had a lot of credit but what we have had has been paid on time.
I am now thinking our only option is for me to get a mortgage on my own.

My salary is £25k pa
OH salary is £21k pa

Original house budget: £95-100K
Budget if I have to get a mortgage on my own: £85k
Deposit: £10k

Would we be better off applying jointly for mortgage who accepts bad credit with a high interest rate or do I have a better chance of getting accepted on mt own?
Or should I just give up the hope of buyng anytime soon?

liteplay

Speak with a mortgage broker...

kingstreet

peytonx wrote: »

Would we be better off applying jointly for mortgage who accepts bad credit with a high interest rate

You don't have a big enough deposit for that.

do I have a better chance of getting accepted on my own?

Yes. If you run your income and expenditure through an affordability calculator, you should find a maximum of around £96,000 (with an income of £25k and a loan of £100 per month) as an example.

With £10k(ish) deposit, that would mean a purchase price of around £105,000 - £10,500 deposit and £94,500 mortgage. You'll need money to cover fees/costs on top.

peytonx

Thank you for your replies.

I did want to see a mortgage broker, it just picking one...

I thought I would ask here though first, as we have saved the deposit and cash for fee, moving and improvements, but after receiving the credit report my hopes were dashed!!

I have no loans, credit cards or any other payments other than rent and bills.

Is it problematic getting a single applicant mortgage when married and the OH will be living there?

I do intend to find a whole market broker shortly, just wanting to know what to expect.

Conrad

I suspect your only option will be in hubby's name but ensure the broker knows what they are doing as there are many pitfalls in terms of affordability and where the lender perceives a risk by your living in the new place.

Wh05apk

The problem you will have is that if the deposit is coming from a joint account few lenders will accept that.

At 90% LTV lenders are picky, it will be worth letting a broker see your credit reports to see what is actually showing, the exact dates and amounts will have an impact.

peytonx

I am having difficulty choosing a broker, I want an whole of market broker but how do I pick a good one. Anything to look out for?

Has anyone had experience with the Post Office mortgages? Is there some lenders that are less likely to accept single applications? Or does it all depend on each case.

Sorry if I seem to be asking a lot of questions but I dont want my application to be turned down.

GMS

8 missed payments. Did this register as an '8' on the credit file? If so it is a default on Equifax.

What exactly is reported on the credit file and from when?

peytonx

GMS wrote: »

8 missed payments. Did this register as an '8' on the credit file? If so it is a default on Equifax.

What exactly is reported on the credit file and from when?

It just says 8 and the value of £1200 for several months. It now says satisfied, but he only paid £525 to clear the account.
We have not been able to get our equifax report as the couple of times I have tried online it always says error

GMS

peytonx wrote: »

It just says 8 and the value of £1200 for several months. It now says satisfied, but he only paid £525 to clear the account.
We have not been able to get our equifax report as the couple of times I have tried online it always says error

You need to get a copy of Experian, Equifax and Call Credit.

Sounds like a default rather than missed payments.

Check for the date of default as it should drop off after 6 years

peytonx

GMS wrote: »

You need to get a copy of Experian, Equifax and Call Credit.

Sounds like a default rather than missed payments.

Check for the date of default as it should drop off after 6 years

The original default/ missed payments were in 2007 (HP taken out 2004 over 3 years) and was due to Barclay Finance. Cahoot then took on the debt at some point and it was satisfied in 2011. On the credit report it shows the account with Cahoot and all the missed payments/ defaults with them during 2011. Even though it was quickly resolved when Cahoot got in touch.

I think it best I apply for the mortgage on my own following the advice above. As I am female, aged 26 and married with no children, would the possibility of future maternity leave go against me?