Ftb

iwannabefree

Hello all. Me and other half are in the early stages of looking to buy our first home after renting for far too long.

I don't think we're really going to get a mortgage at the moment, but thought i'd ask you all for your opinions.

Situation.

We have a deposit of just under £9000
House we have found asking price £129000

My income £36500
Wife income £16000

1 credit card, balance £1200
Overdraft £2300, which is cleared every month.

No missed payments

No other debts

Issues:

Being in the forces, we have moved quite a few times, most recent one this July. But we have both registered on the electoral role. Just under five years at previous address.

All green marks on credit reports.
IVA complete and removed from credit reports.

With our overdraft, I don't think we'll be successful until it is cleared.

Any thoughts and advice would be greatly appreciated.

Thanks.

ACG

Your deposit will be the biggest issue, your not quite at 10% - although you could potentially look at the LSAP from the army?

Income wise your fine.

Anyone you owed money to at the time of the IVA i would avoid when applying for a mortgage.

iwannabefree

The £9000 is the LSAP. Having not been able to do things with our kids for so long with the IVA, we have just been having a good time for the last year or so. We could top the deposit up a little, but only by another £1000 or so.:undecided

Yorkie1

Don't forget to allow money for mortgage application fees, survey, search & solicitor's fees. Also, if you pay more than £125K then you'll pay stamp duty too.

ACG

You really do need 10%, i think your going to struggle otherwise.

dch2005

You will need 10% deposit unless the property you are buying is a new home?

There are few and far between 95% mortgages on old properties atm until the new help to buy scheme in January.

You also need to factor in costs involved.

Stamp duty at 1% = £1290
Solicitors- £750 - £1200
Survey- depending on lender, some are free, some may cost up to £500