Mortgage Help

michaelmcw

Hi All,

I have just finished paying of 4 different debts in the past month.

1 x loan (was paying £278 per month)
2 x credit card (paid both of with savings - £1,500)
1 x store card (£200)

I now have only 1 remaining debt of a personal loan with repayments of £182 per month. (Balance £4,400)

My rent is also £150.

My finances have been a mess in my past and my remaining loan shows that I missed 2 payments in the past month. I have no defaults and all my previous records are settled satisfied successfully.

I have savings of about £4,000 and my parents are willing to lend me £10,000.

I currently earn £32,000 per year. I take home about £1,800 per month.

Do I have any chance of getting a mortgage at the minute or do I need to wait a few years?

ACG

You cant use a loan to form part of the deposit. However Woolwich have a family springboard mortgage which might be of use.

Aside from that, it will depend on your credit score. With a 10% deposit there are lenders who will look at it but without seeing the credit reports its difficult to say.

michaelmcw

ACG wrote: »

You cant use a loan to form part of the deposit. However Woolwich have a family springboard mortgage which might be of use.

Aside from that, it will depend on your credit score. With a 10% deposit there are lenders who will look at it but without seeing the credit reports its difficult to say.

My credit score is currently 751. This will hopefully rise(?) now that I have paid of my credit / store cards. Still waiting on Experian to update.

Dave_Ham

Sorry, how have you missed 2 payments in the last month to one loan?

Time is a healer, although suspect you will be able to achieve something sooner rather than later.

Forget the scores, they genuinely are worthless.

Saw a client this week with Experian score of 978. 7 defaults on file and a Debt Management Plan in place.

Foxy-Stoat_3

If your parents are going to gift you the £10,000 then your total deposit is £14,000, less application and legal fees.

You will have no problem getting an 80% LTV mortgage after say 6 months following the last default.

You haven't said the value of property you are hoping to buy, £70,000 will be do-able....£160,00 very unlikely.

Your deposit will be the restricting factor after the defaults are a bit older.

Thrugelmir

Build your savings and clear the remaining loan in the process. With only £150 a month in rent to pay. Should be possible to build savings fairly quickly.

Both Nationwide and Halifax operate saving schemes for FTB's that may prove advantageous given your past history.