1st Time Buying Couple Need Advice on £55k mortgage

charl1ebear

Hi all
Have spent ages reading through the site getting some great information just wanted some opinions on our curerent financial situation.

We have been renting together for over 7 years now the cheapest place we rented was £380 and the most expensive was £550
So as an avergae of £400 a month over 7 years works out at around £35k!! I was shocked at this amount and we have decided we really need to get out of rented accomodation

I understand a mortgage isn't decided purley on credit score but we just wanted some advice.

The flat we are looking at is up for sale for £56k if we managed to get it for £55k we would be putting £5.5 deposit down which we already have from inheritance, the mortgage amount would then be £49.5k at 4.0% over 25 years is £265 a month with an average monthly income of £1800 would need money for bills, car, food, council tax etc an

Have both got our credit reports will list our seperate situations below.

Myself 28 Year old Male

Full time employment last 8 years earn £19k p/a going upto £21k p/a next month

Had motorcycle finance with black horse for 3 years now no late payments - outstanding balance of £1500 which i will be paying off before applying for a mortgage by selling my bike.

Capital one credit card with a £200 limit used monthly no late payments and paid off

Also had a dfs sofa on loan for 2 years all paid and settled no late payments

But i have 2 late payments on gas and electric and one mobile phone were we moved house twice in a year and i didnt sort things until the following month

My credit score is fair and says im using most of my avalible credit because my bike finance is pretty much my only credit other than my £200 credit card, So if i sell my motorbike and pay off the outstanding £1500 my credit score should increase??

My wife 38 Year Old Female

Part time employment £8k p/a

Has a catalogue with avalible balance of £2,800 and a balance of only £165 which she says she will pay off this pay day.

Capital one credit card had for 7 months no late payments £200 limit currently empty.

She also has 2 late payments for gas and electric

All accounts are settled but her credit score is fair because the amount of avalible credit is high?? should she get the catalogue credit amount reduced?

Also i think having such a low credit limit on our credit cards doesnt help but i applied to have mine increased but it was declined?? even though i have always paid it on time.
Also i think moving has affected our credit rating as when you apply for credit it asks time at current address and in the last 2-3 years we have moved 2-3 times moving over to wales and finding more affordable rental accomodation to be able to lower bills and save money.


Would we be able to get a mortagage and where would we be best to start? what mortgage companies would suit our needs? and roughly how much will we need for any other fee's? solicitor's etc?

Many thanks in advance for any help and reply's

Dave_the_Ginger_Cat

This seems probable - would recommend a whole of market broker, who'll be able to find the best deal for you

Do factor the costs into your calcs: legal fees, moving costs and the like as these can mount up pretty quickly