Please help! I think I have no chance in getting a mortgage...

Mortgage_Mark_2

Lottie120 wrote: »

Thanks Mark. Would I be able to apply after 3 years then? If so, would I still have to go through specialist lenders and not normal high street banks such as Halifax, Nationwide etc?

You'd probably find an option after three years', but to be really honest I'd be very surprised if you could find one of the 'big' lenders that would consider it with a default that recently.

Broker is the best route, they have access to lenders that are intermediary-only (like Kensington) who specialise in different cases.

Good luck.

Lottie120

Mortgage_Mark wrote: »

You'd probably find an option after three years', but to be really honest I'd be very surprised if you could find one of the 'big' lenders that would consider it with a default that recently.

Broker is the best route, they have access to lenders that are intermediary-only (like Kensington) who specialise in different cases.

Good luck.

How do brokers work? Do they take a fee and do they give advice or information only?

Do you think after 3 years if we do get something that the rates would be sky high?

Mortgage_Mark_2

Lottie120 wrote: »

How do brokers work? Do they take a fee and do they give advice or information only?

Do you think after 3 years if we do get something that the rates would be sky high?

Different brokers have different charging structures. My company charge a fee on application and also receive a commission from the lender, other brokers don't charge the client a fee at all.

It seems to be fairly unusual to find a broker who doesn't charge a fee whatsoever now, as there simply isn't that much money in arranging mortgages for the time the applications take to get through, to be frank.

Speak with family/friends and see if they have any recommendations, that's always the best way to find one.

EDIT: Re: advice etc; mortgage advisers give advice, that's pretty much the reason they're there.

Bantex_2

Lottie120 wrote: »

Hi everyone,

I am in a bit of shock right now as I have just discovered that my partner has 2 defaults on his credit expert report. One was in 2012 for £500 and has been settled and one has just shown up in April 2014 and the outstanding amount is £560 and it will be settled this month in full. I have also discovered that he has taken out numerous payday loans and pounds to pocket loans and one of them he has missed payments for. I think his credit scores around 610 which is classed as poor.

My credit history is good and I think my credit scores around 930. Our combined salary is £45,000 and we have a deposit of £70,000. I thought we had a good chance of getting a mortgage but these recent findings have shocked me and now I am so worried as to if and when we will get a mortgage?

I was hoping for a £250,000 mortgage with assistance from the help to buy scheme. Can someone please advise me on what our options are? Could we still get a mortgage if we have a high deposit? Do we need to wait the full 6 years to get a mortgage now or will any lender take into account my high deposit and be willing to lend to us? How much mortgage could we obtain, is £250,000 too high?

Many thanks in advance.

Even witout the dodgy credit file, over 5 times joint income sounds rather ambitious.

Lottie120

Bantex wrote: »

Even witout the dodgy credit file, over 5 times joint income sounds rather ambitious.

Even with a £70,000 deposit? I plan to increase this to £100,000 deposit. Will that still be ambitious with a 40% deposit?

Mortgage_Mark_2

Lottie120 wrote: »

Even with a £70,000 deposit? I plan to increase this to £100,000 deposit. Will that still be ambitious with a 40% deposit?

Forget the deposit - MMR now means all mortgages have to be affordable, regardless of deposit level/risk. Deposit makes absolutely no difference and 5x joint income is going to be very, very difficult.

Lottie120

Hang on how would it be a joint 5x income? I have £70,000 deposit and the value of the potential home could be £250,000 so we would only need a £180,000 mortgage. At a joint income of £45000 this is four times and not five. Would this prove difficult? so is there no point now in saving a huge deposit due to these MMR rules?

cte1111

In your position, I would be more worried about why my partner was taking out payday loans and hiding them from me.

It sounds like he's had problems managing his money and hasn't felt able to discuss it with you. Perhaps concentrate on sorting out this aspect of your relationship now, rather than worry about a hypothetical mortgage in 2-3 years time.

Tigsteroonie

Lottie120 wrote: »

Hang on how would it be a joint 5x income? I have £70,000 deposit and the value of the potential home could be £250,000 so we would only need a £180,000 mortgage.

Because in your OP you say:

Lottie120 wrote: »

I was hoping for a £250,000 mortgage with assistance from the help to buy scheme.

It is only later in the thread that you clarify that you mean a £250,000 house with £180,000 mortgage.

Lottie120

cte1111 wrote: »

In your position, I would be more worried about why my partner was taking out payday loans and hiding them from me.

It sounds like he's had problems managing his money and hasn't felt able to discuss it with you. Perhaps concentrate on sorting out this aspect of your relationship now, rather than worry about a hypothetical mortgage in 2-3 years time.

I am not asking for opinions on my relationship, this isnt a relationship management forum. I am asking for opinions on what my position can be 2-3 years from now. Best to plan ahead no? P.S I thought you were meant to be nice to newbies!