Is there a mortgage out there for us?

Midwife

I'm currently renting and it's possible the house we are supposed to be moving to might be sold from underneath us, could anybody advise us on whether there would be a mortgage for us as we'd love to buy if possible just to get some stability.

Current income jointly 58k (approx 8k is enhancements - regular)
Current monthly outgoings approx 350 (car & settee, both due to end next year, no missed payments)
2 x well maintained credit cards, no balance on one, approx 650 on another.
1 x residential mortgage with consent to let rent covering more than 100% of the mortgage
My credit file has almost all green accounts except for one eon account that has a zero balance but a 3 next to it from last year (although still showing as open- am trying to get eon to close it but they're bloody useless)
Husbands account has well maintained mortgage and credit card plus 3 settled provident accounts from 5+ years ago 2 of which have a 1 next to them.

Husband had an IVA 6+ years ago,now removed from credit file.

Deposit available now would be approx 5% and and looking to borrow around £157000.

I suspect the answer is no but worth a shot asking on here.

HappyMJ

There's a mortgage for everyone and their circumstances.

Your income is high enough to support a mortgage of that amount and your credit history looks OK.

More savings and less debts would be good but it's not a deal breaker.

ACG

With a 5% deposit and an IVA this will be difficult.

Definitely one for a broker to give you the best possible chance of getting this through as some lenders are not going to be happy with it i dont think. The IVA will need to be disclosed as the question is usually "have you ever made arrangements with creditors".

Midwife

Thank you for your responses, I hate renting so much and can't wait to have a stable roof again, we had planned to wait 12-18 months so that most debt was paid off and savings had increased but circumstances dictate this might be more unsettling in the short term. Do you think we'd be looking at a sub prime mortgage if anything at all?

Dave_Ham

It will come down to the absolute detail, although I certainly do not think it is a waste of time.


Worth achieving all 3 credit files; Experian, Equifax and Call Credit and having a chat with a broker.


Good luck

Thrugelmir

Why not sell your husbands property and release the equity.

Midwife

It's a jointly owned property (our first home that we sadly outgrew) with little to no equity that would require some cosmetic work to get the best price and would probably not release much if any cash after sale/fees etc. We're currently overpaying the mortgage as much as we can after saving to increase our equity/shorten our term.

Wh05apk

Midwife wrote: »

It's a jointly owned property (our first home that we sadly outgrew) with little to no equity that would require some cosmetic work to get the best price and would probably not release much if any cash after sale/fees etc. We're currently overpaying the mortgage as much as we can after saving to increase our equity/shorten our term.

I would suggest stop overpaying, and use the funds to increase your deposit on the new property, if you can get a 10 or even 15% deposit, that will massively increase your chances.

Midwife

Yes we could do that, it's only by about 75 pounds per month but I suppose it's better in my pocket to put towards a deposit.

pinkteapot

Are you both on permanent contracts at work?

Just asking because of your username - I know a lot of NHS jobs are contracts.

Thrugelmir

Midwife wrote: »

It's a jointly owned property (our first home that we sadly outgrew) with little to no equity that would require some cosmetic work to get the best price and would probably not release much if any cash after sale/fees etc. We're currently overpaying the mortgage as much as we can after saving to increase our equity/shorten our term.

Might well impact affordability calculations having a second mortgage.

As for overpaying. Remember only the interest element of the mortgage repayments is tax deductible. Not the capital. So you may be exposing yourselves to a growing tax liability.