FTB - advice on mortgage chances needed

Blinkbadger

Hi there

I am new to the site and am looking for some advice, especially from any of the mortgage advisors out there. I think many people are in my situation but want to outline my circumstances.

I am looking at buying a property through the Help to Buy equity loan scheme. The asking price is £199,950 so with the equity loan and my 5% deposit I would need to borrow £149,965. The property won’t be ready until September so I won’t be applying for a mortgage until April/May 2014.

I earn £50,000 a year, have no loans or other mortgages and I have around £2000 on a credit card which will be paid off at the end of this month.

My financial history has not always been squeaky clean. I have downloaded all my credit reports from Experian (score 945) and check my file which shows call credit (721) and Equifax (666).

I have never had any defaults or CCJ’s but I have had missed payments. The last missed payment was in January 2012. I have none since then and previous to that there are 8 missed payments all over 3 years old and never with more than Status 1.

I have spent time rebuilding my credit report and it has improved immensely over the last 12 months. But for someone who is relatively intelligent I read somewhere that payday loans were a good way to show you can repay on time etc and improve your score. It was such as stupid thing to do. I took out quite a few payday loans which were paid back straight away. I was then advised this was the worst thing to do so stopped completely. The last was in February 2013.

My question is given the details above do you think it will be possible to get a mortgage? If so, who are the most forgiving of the main stream lenders? Are there any people in similar circumstances that have had success in getting a mortgage recently?

Any help you can give would be gratefully appreciated.

monty-doggy

I've used payday loans twice, similar credit rating earn less than you and still borrowed £114k. You need to try an independent broker, they will find a lender that only uses the best of your credit files.

In the meantime keep paying your cc on time and don't miss any more payments, and don't apply for any more credit.

Blinkbadger

Monty-doggy, thanks for coming back to me. It gives me some hope that I may be able to own my own home in the near future.

Out of interest were you able to go with a main stream lender? The property developer has an independent mortgage advisor (mortgage bureau) that I need to do everything through so I am hoping they can give me some good advice when it comes to applying for the mortgage.

kingstreet

If you want HTB - EL there are only mainstream lenders offering products.

monty-doggy

Yes I'm with woolwich from Barclays, but it was the broker who sorted it all out. Don't be tempted to just apply, get copies of all your credit files and bank statements to a broker and be honest. I don't think the developer can dictate which broker you use, get a recommendation.

amnblog

bit early to worry about this Blinkbadger

sounds like you will get it through OK, but do use a broker.

Blinkbadger

I am a born worrier amnblog! I will use broker whether it be with the developer or independent.

Thanks everyone for the advice, feel a lot better about it all. Just going to get my head down and carry on saving