Is this going to be possible?

Manchester_123

Hi All,

Me and OH are hoping to buy our own place in the near future, however we have previously been stupid with money and are now only realising what such a big impace your finacial history has on your mortgage application.

We are both early twenties and now have good jobs after years of studying and financing ourselves through further education.

Joint gross income is £53,500.

We would be looking to buy a house in the region of £110,000 - £120,000. We would have a 5% deposit.

Unsecured debts of the following :

£393 per month for OH loan
£153 per month for my loan
£8,000 on a credit card (0% interest for the next 20 months)

My query is this, we have both previous missed payments on our credit reports from 2011 - 2012. OH has 6 missed payments, all of them are only '1's on the credit report, i.e they were paid after 1 missed date. The reason they were missed is simply due to us being unorganised. I know that the lender doesnt care what the reason is. I also have about 3 missed payments, again all '1's.

Is there any chance at all that we will get a mortgage or should we just give up now and rent somewhere. We seriously need to get our own space ASAP.

Any advice is greatly appreciated as I feel like we are stuck in a horrible place with no options, I do appreciate that this is no ones fault but our own.

Thanks

ACG

Its going to come down to credit scoring.

Are the late payments on all 3 credit reports?

amnblog

If you get a result here you can thank Gorgeous George Osborne and the H2B scheme.

Do consult a broker however, before you make matters worse.

Manchester_123

Hi ACG,

Thanks for your reply. I have only looked on Experian so far. I have not yet checked the other files.

what would your advice be at this point, save up a bigger deposit?

Manchester_123

in addition, my OH credit score is 999 - Excellent on Experian, Mine is 'Fair' although I know that these scores dont really mean much.

Suarez

1. Clear your existing debts before taking on a £120,000 debt.

2. Save like mad to the largest deposit possible.

ACG

I dont agree with clearing the debts at this stage. Affordability is fine. The money would be better used increasing the deposit (if it were available).

I would get your other 2 credit reports (equifax and call credit) and then speak to a broker.

Thrugelmir

£8k on a 0% credit card amounts to a borrowed deposit.

How much do you owe on the 2 loans?

Manchester_123

thanks ACG. I agree with your stance because if we concentrate on clearing the debts we will be living with parents for a few more years which is unbearable and not fair on them either.

O/S amounts on loans - £15000 on OH and £3000 on mine. Mine ends next July.

Looks like we will have to really save for that 10% deposit and get on board a helpful broker.

ACG - with a 10% deposit do you think it will be achievable?

Thrugelmir

£26k of debt in total. There's the issue you need to tackle head on.

ACG

Bigger deposit usually means better chance of it going through.

It will all depend on the lender. It could fly through at 95% with one lender but get declined at 85% with another lender - which is why i would suggest getting your credit reports and going from there.