Looking for a Mortgage and where to start

Let_Us_See

Super_Ram wrote: »

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

I thought the whole idea was to receive advice? I have read all your post, and the best advice available is to see a broker/adviser.

kingstreet

Super_Ram wrote: »

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

Just to join the debate on information needed, the issue of "can we get a mortgage?" surrounds only the items I've coloured.

The rest is background only. It may later influence how much you can borrow.

I'm not too fussed TBH, I can normally pick out the relevant bits pretty quickly, but if someone new reads this, it may help them be more succinct.

No offence intended.

JimmyTheWig

Saying the OP should see a mortgage advisor is a good suggestion.
Saying the OP shouldn't be posting on here isn't such a good suggestion. The better informed the OP can be when they see the advisor the more chance they have of the advisor finding them the best deal.

I agree there was plenty in the OP that wasn't necessary.
But how is someone doing this for the first time supposed to know what is necessary and what isn't?
I'd say it's less frustrating to read through some irrelevant waffle than to give a great answer to what has been written to then find out the OP left out something important because they didn't want to bombard us with info.

Super_Ram

kingstreet wrote: »

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?

Okay thanks as now I get it.

I might of missed it but I did not realise the difference when looking at the help to buy info.

However withe possibilty of having to have a clear credit history it may not be an option so may have to look at a mainstream Mortgage but with a higher deposit to even be considered

kingstreet

That's about it, yes.

A whole market broker will be able to properly address your situation and "roadmap" what you can do and when.

Let_Us_See

kingstreet wrote: »

That's about it, yes. A whole market broker will be able to properly address your situation

Which is what was recommended in post 4!

JimmyTheWig

Let_Us_See wrote: »

Which is what was recommended in post 4!

Yes, but kingstreet said it nicely

kingstreet

When I first joined here, someone kindly pointed out that replies which simply contained "see a broker" were not acceptable. I don't know where I read it, but I've tried to add a little to each post to explain something, even if the ultimate response is going to be "talk to a broker," as it often is.

I added and reiterated what had already been suggested. The place is going to get a bit dull if reply one says "see a broker" and then no-one else is allowed to say the same thing.

FWIW the OP now knows there's a difference between the HTB schemes and that he's likely to need a bigger deposit because of his credit problems. I can't see much wrong with him knowing that and thinking this isn't a bad place to get information.

jumperjohn

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'.

My advice is to avoid all jumped up so called advisers, we have use two in the past and found them a waste of time as you can imagine from the comment above, half arsed and ill informed.

Firstly, try your bank and secondly other lenders directly. Do a simple rate search, fixed or not ect and use this sites mortgage and afordability calculator.

I read all your multi-paragraphed post and I found no issue.

Good luck.

amnblog

I am willing to bet we are all better informed than the layman.