The impossible?

depositsaver_2

We are just wondering if a mortgage would be possible for us with any of the Governments help to buy schemes.
Background info
Currently rent £1350pm
OH Wage basic £42258, P60 £56267. Same job since Sept 2008.
Me Currently not working as home with 3 kids, but will work from next September with salary in region of £20-25k as a nurse.
Deposit of £5k saved, £10k gifted from family
Houses 220-230k mark. would apply in Hubbys name only I think.

The bad bits!
Had repo in aug 2008, but shows as Jan 2009 on credit reports. Repo due to ill health, loss of income, rising interest rates, mortgage arrears, negative equity due to exit fees so were not able to sell as a result, owe about £40k I think but never been chased, also had secured loan for £22k again not chased and shows as settled (sept 2009).
Currently have credit card with about £2k on interest free paid on time each month.

Can anyone advise us. We see house prices are rising on a monthly basis, landlord will sell next year so will be moved again and struggle to find what we need near schools.

tinkerbell28

No chance, not with a recent repo and a low deposit.

Also the fact you've got 40k still outstanding. Chased or not. Then the 20k, even if it shows as settled, if you haven't paid it and it was still outstanding. That could be a common anomaly where it is being passed onto another collection agent and they've yet to register the debt on your credit files.

ACG

HTB is there to overcome a low deposit - not adverse credit.

I would be very surprised if you would get this through, however most of what is on your credit report looks like it has or will be due to drop off - in which case there may be a chance.

Assuming you can find a HTB lender who you do not owe money to there may be a way.

However, im not too great with HTB - there is a member on here called kingstreet who understands it far more than i do.

Conrad

I'm afraid it's impossible for a few years at least. Sometimes in this situation a mortgage in a trusted family members name is worth considering.

depositsaver_2

I think it may be best to wait for it drop off and save like mad once I start work which we will be in a position to do so which is what we had always really planned to do, but with the government help we just don't want to be left behind with rising house prices .
We made mistakes in the past, and we naïve to a certain degree, we also had a lot going on with health, but the lenders attitude towards us didn't help the situation. The irony was if we held on until after Aug 08 interest rates dropped and the cost of our mortgage would of enabled us to pay of arrears etc - in hindsight!
We have kind off turned our lives around and now in very secure jobs, with good income(s), however on the one income it is very hard to save for a deposit when we pay so much rent. We just want somewhere we settle and not in the hands of landlords who kind of do as they please.

depositsaver_2

Conrad wrote: »

I'm afraid it's impossible for a few years at least. Sometimes in this situation a mortgage in a trusted family members name is worth considering.

Not an option for us im afraid, but thank you for offering an option.

kingstreet

Help To Buy can't cope with anything stated here.

The only way this becomes a goer is when the adverse is no longer visible on the credit files.

Brock_and_Roll

Am I the only one here who finds the OP's comments perfectly understandable but slightly worrying......

If the general public feel that HTB is going to cause house prices to rise rapidly, then they will do whatever they can get on board asap and in the act of doing so, lead to a self-fufilling prophecy in pushing up prices further.

I sincerely hope that the credit officers in those banks that take part in HTB (my employer will not take part) keep their nerve and dont feel pressured to lower credit criteria.

kingstreet

The general public does not understand Help To Buy.

Once it is explained, it will not appeal to as many people as you might think...

95% mortgage at 5% to 5.5%?

That is going to disappoint many who think there's a low rate, an interest-free loan and anyone can apply regardless of income, credit etc.

kingstreet

From the scheme rules;-

the Loan is granted by the Lending Group Member only after the Lending Group Member has:

(i) satisfied itself that the borrower is not (or, where there is more than one borrower, that none of the borrowers are) credit-impaired (as defined in Schedule 3 to these Rules)

Schedule 3

A borrower is credit-impaired for the purpose of rule 3.1(m)(i) if the borrower is a customer who:

(a) within the last two (2) years before the Date of Completion has owed overdue payments, in an amount equivalent to three (3) months’ payments, on a mortgage or other loan (whether secured or unsecured), except where the amount overdue reached that level because of late payment caused by errors by a bank or other third party; or

(b) has been the subject of one or more county court judgments, with a total value greater than £500 (five hundred pounds sterling), within the last three (3) years before the Date of Completion; or

(c) has been subject to an individual voluntary arrangement or bankruptcy order which was in force at any time within that three (3) year period.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/248722/HtB_mg__Scheme_Rules.pdf

MrChandlerBing

kingstreet wrote: »

The general public does not understand Help To Buy.

Once it is explained, it will not appeal to as many people as you might think...

95% mortgage at 5% to 5.5%?

That is going to disappoint many who think there's a low rate, an interest-free loan and anyone can apply regardless of income, credit etc.

Yet will still be cheaper than renting for a lot of people.