defaults on mortgage application

jakcall

Hi
I currently own my property with my wife. I have paid this mortgage for almost 8 years with no problems. I have now seen the house of my dreams!! And want to buy it desperately.

My first question is can I go and get another mortgage whilst still having the first one?I doubt my house would sell quickly enough to enable me to buy my new house.. I have possibly 10% deposit saved already.

My second question, there are 2 defaults from my wife that are almost 6 years old.Will this be a problem when trying to get a new mortgage?

Any help would be most appreciated.

ACG

This is far to complicated to answer on an open forum as there are so many possibilities.
It depends on if you intend to rent the property, whether your income could support the 2 mortgage, how much the defaults were for and if/when satisfied.

I would say it could be possible but it wont be a doddle and the number of lenders would be very slim. I would suggest you book an appointment with a good experienced mortgage broker (not one in an estate agents).

jakcall

Thanks. I intend to sell my house asap. The defaults were both for a few hundred pounds.am I correct in thinking that they will be wiped out once the six years is up anyway?

ACG

You are yes. But some lenders will insist that you pay them off, other lenders will have wanted them paid off 6, 12, 24 or 36 months prior to an application being made.
The fact that there is more than 1 isnt going to help the situation and neither is the 10% deposit.

To be honest, the more i think about this, the less likely i think it will be to happen. If there was no second property and a 15% deposit i could place this all day long probably but as the property is not/will not be let out then it might cause problems.

Im not saying its impossible, im just saying it will be a tough ask.

jakcall

Ok. So you think once my current property sells and I have maybe 15% deposit my situation will be more promising?

ACG

At 15% there are lenders who will ignore the defaults once over 2 years old. Some high street lenders will ignore once they are over kind of 4 years but yes at 15% this could be placed all day (although i would still speak to a broker as not all high street lenders will accept it).

jakcall

That's wonderful news.many thanks for your time.