Mortgage Help

preciousb

Hi all

Yesterday i put down a deposit on an early bird new build property

The property price has not been released yet but this is the dream home we want.

I have approximately 9 months before the house is built excluding any delays and wanted to know which way to apply for a mortgage when the time comes

We have a few defaults on both my name and my wife's name but no debt. Everything is settled. I have 3 defaults on my name and my wife may have four i think. One should drop off this year. Again these defaults per one are more then 4 years old.

I also have a CCJ from August 2008 which was also settled that year fully. It should come off by the end of next year but i will be making the mortgage application before this happens.

The same property in the area went for £320,000 so i am assuming it will be near this amount when released

My earnings have increased to 28k per annum and the wife is self employed with net profit of £36k with 4 years of accounts showing the growth in profits every year.

This also would be our first home and we wanted to see if we could get the government equity help to buy loan - Is this based on credit status too?

How should i approach this and with a house value of 320,000 what deposit is required to ensure i get on the property ladder

It would be a joint application with the wife

I have no contacts in this field so i thought the forum maybe a great place to get some good advice.

Reason for Defaults and CCJ's - I was very immature and finally grew up and sorted all finances out. All debt occured at university time but since the last 4 to 5 years, i kept on clearing. I have become debt free (20k debt)

Dave_Ham

New Build is not our area of specialism, although why would you put a deposit down without being confident of achieving the finance?

5% is the absolute minimum, assuming you qualify for the scheme and can get a mortgage with a lender that is on the scheme. With the defaults and CCJ, this is going to be hard work I would imagine.

Outside of that 15% deposit will open doors to new lenders, although they may not allow new build's so you will need to do some research or engage a broker who often does new build purchases..

Good luck

ACG

You have put a deposit down without knowing the final selling price?! Thats crazy!
You have also done it without knowing how much deposit you will need?

Based on your incomes i would say you can borrow approx £200k so the remainder would need to be a deposit/equity loan.

Let_Us_See

Why on earth didn't you ask for advice BEFORE paying a deposit, I just hope it wasn't non-refundable? You are not in a great position, and it would greatly help if you provided your anticpated borrowing requirement. Also, I am a little confused concerning "same property in the area went for £320,000 so i am assuming it will be near this amount when released?" Are you stating you have paid a deposit and not agreed a purchase price?

However, let's start with confirmation of your anticipated borowing?

R_P_W

So you paid a deposit on a house that 1) you don't know how much the sale price is? 2) you dont know whether you will be able to get a mortgage? 3) you dont know how much deposit you will need?

How much deposit will you have? I think that with your credit history and your wife being self employed you are going to really have problems unless you have a 20% deposit. With 20% you would need to borrow four times your income, so with 10% you just won be able to borrow enough.

preciousb

Hi it is a refundable deposit

The early bird is just a way to get first refusal on the property when its released for sale. We have been wanting this particular home for a while and missed out on the first 3 homes - same property with the development. I called yesterday and the development said that they have released one of these homes on an early bird.

So i put the deposit down of 500 which is refundable if we change our mind. The price is then released within a few months. 6 months into the build. But the same property within this development that were released earlier have all been put on the market for £320k

I may have gone about this the wrong way but as mentioned i did not know any better and should have thought this through and seek advice

I also forgot to mention based on how things are going - by the next 6 months

I will have achieved a deposit of approximately 50k

kingstreet

It's a reservation fee, not a deposit.

It is refundable, although the builder may retain some of it for admin expenses.

Check with them.

Let_Us_See

Accepting your figures equates to 84.4% LTV and with past history of adverse credit I think you will struggle.

preciousb

Apologies i meant a reservation fee, not a deposit

Is this not achievable at all?

How do you find a mortgage broker or adviser who can help deal with this?

kingstreet

The builder will have specialist advisers you can talk to...