Looking for a Mortgage and where to start

Super_Ram

Hi All,

I am looking to leap into the Mortgage game and am looking for some helpful advice on where to start so that I do not make any stupid costly decisions but also not to end up missing something I could do to improve my chances.

Things I am looking at are a joint Mortgage or single depending on what would give us the best chance as our credit is not great. I have also looked on the Help to Buy scheme but not sure if we would qualify for this.

To give a better idea on my situation I am 35 in full time employment in the same company for the past 9 years. I earn just under 27k. My credit rating is classed as poor/fair. I am guessing this is down to the fact I have just had an IVA drop off my file after 6 years(was settled 4 years ago), have a delinquent account which is settled and over 4 years old and few searches and my used % of credit to available is not great. However apart from this I have nothing else recent like late payments etc.

To give a better idea on my partners situation she is 27 in full time employment in the same company for the past 7 years. She earns just under 23k. Her credit rating is classed as fair. I am guessing this is down to the fact she has 2 defaults which are 4 years old and were settled 4 years ago, a delinquent account which is settled and over 4 years old. However apart from this she has nothing else recent like late payments etc.

In terms of deposit we currently have 10k and in terms of income we have quite a lot of disposable income in terms of affordability for a Mortgage.

So I suppose the question is what sort of place are we in in terms of getting a Mortgage if any.

The second part in terms of what credit we have is we recently took out a loan which went towards paying off the HP on my partners car, all of our credit cards and a clothes Catalog balance. This now means we have 2 cars in the household we fully own and all our credit cards have nothing spent on them so in terms of on our credit file I would presume it would now show as high available credit but not sure how much if any this helps your credit rating. Also even though I now only have one simple Loan payment every month which is easily affordable, looking back I am not sure if this would look better on my credit I now do not have loads of high used credit but rather one big lump sum.

As mentioned this loan is the only thing we now have(well officially mine as in my name and not joint) apart from the usual household bills and rent. So this would actually mean my partner would not have this loan on her file and also the high % available credit cards. Also would we be better to leave the cards active and not spend on them so it shows high % available or just closed the credit cards down.

So sorry for the long post but want to make sure I get everything down on paper so it shows our exact situation

Thanks in advance for any advice

Super_Ram

I know it is a big post so maybe people are still reading it :rotfl:but any advice peeps

Thrugelmir

What is the loan balance?

amnblog

A good start is to stop messing about on here with multi-paragraph posts that no-one can be bothered to read, and engage an independent mortgage broker.

That is your best change of not making any 'stupid costly mistakes'.

Super_Ram

Thrugelmir wrote: »

What is the loan balance?

The Loan is for 12000 at the moment

Super_Ram

amnblog wrote: »

A good start is to stop messing about on here with multi-paragraph posts that no-one can be bothered to read, and engage an independent mortgage broker.

That is your best change of not making any 'stupid costly mistakes'.

If you do not want to post constructive advice then take your own advice and do not read these multi paragraph posts. I have seen many as post on here which are people asking for advice with one line sentences and no information to be aboe to make an informed response. I apologise I have offended you so much you felt the need to rant on my post but I wanted to give as much information as possible.

And yes I am see a Mortgage Broker at the weekend but there is no harm in trying to do research in as many areas as possible. I forgot forums had changed from having people on here who will offer advice to people like yourself who have to respond with useless comments

kingstreet

I have just had an IVA drop off my file after 6 years(was settled 4 years ago), have a delinquent account which is settled and over 4 years old

and

she has 2 defaults which are 4 years old

I suspect your credit history will preclude you from a mortgage of 90% or more. You have given no indication of what this £10k will be in terms of deposit, so I'm going to assume you want to buy for £100k or more, making the mortgage 90%+.

Let_Us_See

amnblog wrote: »

A good start is to stop messing about on here with multi-paragraph posts that no-one can be bothered to read, and engage an independent mortgage broker.

That is your best change of not making any 'stupid costly mistakes'.

Despite what you may believe, this is good constructive advice.

Super_Ram

Let_Us_See wrote: »

Despite what you may believe, this is good constructive advice.

Seeing a Mortgage broker is constructive advice which he advised at the end.

Initially stating I am messing about on here with paragraphs no one will read is just a pointless reaponse as forums are for the cery reason of asking advice.

Super_Ram

kingstreet wrote: »

and



I suspect your credit history will preclude you from a mortgage of 90% or more. You have given no indication of what this £10k will be in terms of deposit, so I'm going to assume you want to buy for £100k or more, making the mortgage 90%+.

Think You may have confused me here : )

In terms of the Help to Buy the 10k would work as the scheme stick in 15% also but not sure if qualify for this.

If were to go down the normal route then I would presume I would need a bigger deposit which I was kind of expecting.

kingstreet

You are confusing the two HTB schemes.

If you buy a newbuild, you can use HTB - Equity Loan and have a 10% or 20% equity loan on top of your deposit. A clean credit history is usually required.

If using HTB - Mortgage Guarantee, you are getting a 90%+ mortgage and the underwriting for such will see you needing a clean credit history.

The Government protects the lender on the top 15% of the mortgage from 80% upto 95%, but you don't get that as a loan.

Are you buying new, or second hand?