Getting a mortgage and a broker?

Glennn

Hi,

I just wondered what you guys thought about my situation.

Me - 3 late payments in the last year. one was a 1 and then 2 marker on a credit card (my fault forgot to pay and I had the wrong address so didn't see the reminders) one other late payment which is 11 months old. The one with two late payments only shows on Equifax not Experian. Also payday loan in the last year, all paid on time and not even needed..... Thought at the time it can only do my file good but seems not after reading the news.

Partner - Perfect record, never missed a payment.

Debts - I have a bit of CC debt (£1500 from £4000 available) and an overdraft of £1200 which is in an account I don't use so isn't getting cleared. Partner has car finance (£200/month interest free) and a small cc balance of under £500.

Deposit - We have £5000-6000 which will only be 5%.

Earnings - 20k each (ish) £40k total

We are looking at the help to buy scheme but is it worth seeing a broker? Any good ones on here :-) Is my file too broken at the moment? Should we consider just my partner maybe going for a mortgage?

kingstreet

I think you'll struggle at 95%.

Very high LTV business is based on a clean credit record, HTB - Mortgage Guarantee, or not.

There will be more lenders in the market in the new year, although this may not improve your situation greatly.

Speak to a whole market broker at that time.

Glennn

I thought we may struggle. If we were to leave it a few months would it be better building up the deposit or knocking the debt down?

kingstreet

Debt affected affordability, not acceptance.

A higher deposit will have a much greater impact and increase the potential lender pool open to you.

Nevermind309

Hmmm, example from me to go on. . . .

Sole application on house worth £85,000, I earn £22,500

Only have 5% dep

£4,500 on a cc limit 6k of which I pay circa £100 a month

got 95% app accepted on Monday

Only difference is I've got no missed payments or suchlike.

ACG

At 95% you need to be pretty much perfect. If it was 1 late payment a couple of years back i would be on the fence. With a "2" and a couple of other "1s" then as a broker i would be saying its not one for me as i dont believe in wasting my time or yours (as in the clients).

I think as Kingstreet says, getting your deposit up to 10% minimum is going to be key here. I would also want to see all late payment at least 6 months old if not 12 but i would take a proper view on that once seeing your report.

I would speak to a broker but only once you are able to get your deposit up t 10%.

Nevermind309

just a quick question, will the Halifax have already done a credit check on me? I bank with them as well whether that makes a difference or not?

ACG

If you have done a full application then yes they will have done a credit check. If you only have an agreement in principle then its a soft footprint which is not a proper check.