LTD company & default. Any hope?

vzbfhr

Hi guys

A few years ago with the help of some of you on here I was advised to save a little more, which I have been doing.

Again, we are staying to think of moving but wanted some advise on our mortgage chances please?

The problem I see is that I have a default from 2009 and I draw my salary from a Ltd company.

Some figures to help out:

The houses we are looking at are between £220000 and £250000 new builds.

£40000 deposit from sale of our current home.

My income, £40000+ turnover so £10000 basic salary with £25000 extra drawn as dividends. I have 7 years of accounts earning at least this.

My wife's, £32000 basic.

We also have two children to take into consideration.

As I've mentioned I also have this default.

From mint in 2009 for £700, fully satisfied a year later.

Apart from this my credit report its fine, my wife's excellent.

Hope you guys can give me some indication of our chances before we get too excited!

Many thanks

Buzby

You need a crystal ball! Some lenders care, others will not (as it is settled and about to fall off). Scores are irrelevant, but you may need to insist on a manual evaluation than an automated one.

Good luck!

kingstreet

Are you going with that deposit alone?

What about Help To Buy - Equity Loan?

Your chances will improve if you get the deposit upto 20% as this will add lenders to your pool of options who will not exceed 80% on a newbuild house.

Talk to a whole market broker about how best to approach this. The combination of salary and dividends is not normally a major issue, as long as you can evidence three years' income through SA302s from HMRC and they are steady/increasing each year.

vzbfhr

kingstreet wrote: »

Are you going with that deposit alone?

What about Help To Buy - Equity Loan?

Your chances will improve if you get the deposit upto 20% as this will add lenders to your pool of options who will not exceed 80% on a newbuild house.

Talk to a whole market broker about how best to approach this. The combination of salary and dividends is not normally a major issue, as long as you can evidence three years' income through SA302s from HMRC and they are steady/increasing each year.

Help to buy with a default?

I was thinking that we may need to hit 20% to improve chances. Only £4000 extra on the 220k houses so not too bad.

kingstreet

Help To Buy - Equity Loan with a default, yes, that's what I'm asking.

What advice have you sought so far? Have a particular site/builder in mind? Spoken to their broker?

vzbfhr

kingstreet wrote: »

Help To Buy - Equity Loan with a default, yes, that's what I'm asking.

What advice have you sought so far? Have a particular site/builder in mind? Spoken to their broker?

Ideally I think we want to stay away from HTB because of the likely interest rates rise coming next year. Don't really want a new higher mortgage and a loan!

We've been looking at Morris and Taylor wimpy homes but wanted some advice on our chances for mortgage before we really talk to them.

We have 15% deposit for the both the houses so does 20% really make that much of a difference?

ethank

If you have 15% deposit from your own home, then you should ask the builder if they would be willing to give you a 5% buiders gifted deposit, this is very common, and would get you to 80%LTV.

There are very few players who will lend over 80% on a New Build and it seems that the market for loans over this amount is dominated by a few.

vzbfhr

ethank wrote: »

If you have 15% deposit from your own home, then you should ask the builder if they would be willing to give you a 5% buiders gifted deposit, this is very common, and would get you to 80%LTV.

There are very few players who will lend over 80% on a New Build and it seems that the market for loans over this amount is dominated by a few.

Well we're planning on using their PX so unsure on how much bargaining we're going to be able to do.

ethank

Have you had an offer back from them as yet? Have they instructed the three Estate Agent valuations?