Is a mortgage even a remote possibility?

nenethestar

Hello,
Before I make a complete idiot of myself I'm wondering if I can have a couple of opinions on our situation.

I'm a stay at home mum, husband is full time employed, we've been paying rent for nearly a decade with maybe 1 late payment in the early days. However we had to default on credit cards in 2009, we chose not to go bankrupt but have slowly halved the debt as we've been able, but the remainder is still on token payments so I guess still marked as default. Up until now I've not even considered a mortgage but on the spur of the moment I booked an appointment with Natwest on Friday and the woman phoned to confirm today and ask me to bring in paperwork for a financial review. My question is...is there any point in going? Husband thinks not, I thought it was worth a go but now not so sure. We could find a 5% deposit if we thought we could get 95% mortgage with the new Govt. schemes etc. But is this ever going to be even likely? Is there any lender who goes on other factors like the fact that the rent is always paid therefore we obviously have that money to pay or do they all go on the credit card situation?

Is there any point in turning up on Friday or should I save myself the effort and ring and cancel before I turn the office upside down looking for paperwork?

Any advice appreciated please, I'm sad for my children who ask if and when we'll have to move as our last landlords sold up whilst we were there. I just want to know nobody can do that again.

Thank you

ACG

Short answer is no.

With a payment plan or a default - your looking at a 15% deposit minimum if not more.

On a side note, if you can find 5% for a house deposit why not to clear your debts? It wont help you get a 95% mortgage but it will help you towards getting a mortgage in the longer term.

nenethestar

Thanks for your reply.

The 5% would most likely be Bank of Mum and Dad but for reasons I can't express it would only be for a house deposit I think. I need to have a look at where we are with everything and take stock which I haven't done for a while, but I will cancel the appointment, thank you.

Building_Surveyor

There is a whole host of other things that come with home ownership such as repairs and maintenance. I would say you should concentrate on staying put until your debts are cleared which should free up more disposable income, putting you in a better position for one day owning your own house. Don't give up though... You will get there one day.

P.s cancel the appointment,

chambta

The 95% mortgages seem to only get approved to those with absolutely spotless credit histories.

ACG

chambta wrote: »

The 95% mortgages seem to only get approved to those with absolutely spotless credit histories.

Thats exactly the case.

Reason being if going forward you stopped paying the mortgage or went into arrears chances are the bank is going to lose money. The lower that chance the more lenient the lender.

Another way to look at this is to forget what you know about yourself, put your credit report in front of you and ask yourself if this was a complete randomers credit report would you lend them the money.

nenethestar

We've decided to get Christmas out the way and then see where we're up to with paying stuff off and what's left as I've not looked at it for a while for various reasons. Then we'll see if we can get stuff cleared over the next year or so and then look at it again.

Thanks for all your answers.