First Time Buyers looking for some advice

bertsquall

I have been lurking these forums for ages nervous to ask for help but here goes anyways.

Our Current Situation is me and my partner are looking to go for a joint mortgage spring next year.

My Overview

Full Time Job – 2 years in current employment £19,000. I have been told I will get a pay increase to £23,000-25,000.

Credit overview

2 Defaults:
£96 – Defaulted August 2009, Settled May 2013
£550 – Defaulted May 2008, Settled May 2013

Currently paying a monthly phone contract and Catalogue (done this to try and build up a credit score) which I have paid for the last 5 months with no late payments.

I have paid off a 2 1/2 year phone contract with two late payments in the final two months in 2009 and I have had a current account since I was 16 with Nationwide.

Currently have no debt against my name

Partners Overview

Full Time Job – 8 months in current employment £15,000 a year with a pay increase to £16,000 in the next few months.

Credit overview

1 Default:
£276 – Defaulted October 2010, Settled March 2012

She has several things on the file in the last two years where she has not missed a payment which includes a full payment on a loan, internet bills & phone bills and catalogue bills.

One thing that may be a concern is she has 5 late payments up to April 2011 as an Avon Seller but she did pay this off and it did not default.

Currently she has no debt against her name.

I just wanted a bit of advice. Will we have any hope of being granted a mortgage? We can have a 10% mortgage ready for a house in April 2014 but would we be able to do the Help to Buy with government loan with our situation? Our hope is to have a new house around £130,000 with the 20% Govt Loan it will take it down to £104,000 which we need a mortgage on (I hope I am correct with this) and we will have around £11,000-12,000 for a deposit ready.

Side note: We are doing the Save to Buy with Nationwide but I really don’t see us getting a mortgage with them with our current credit situation.

ACG

Your not going to get help to buy with those defaults.
You have to be perfect for them.

I think you need to get your credit reports down to a broker. 1 lender in particular may do this at 90% but aside from that i think i would leaning more towards a 15% deposit.

kingstreet

Are you buying a newbuild?

If not, there is no equity loan. You are confusing HTB - Equity Loan with HTB - Mortgage Guarantee.

Please clarify.

bertsquall

Hi Kingstreet,

It was for a new build. I was looking at this one (cant post links as new poster) gov.uk/affordable-home-ownership-schemes/help-to-buy-equity-loans

To be honest I always thought with my defaults I would have no chance of getting help with any govt scheme.

kingstreet

Help To Buy - Equity Loan has no credit status requirement. If it fits the affordability calculator and you can get a mortgage, you qualify.

Talk to a whole market broker for proper guidance.

bertsquall

Thank you for the replies its much appreciated