Realistic - getting a mortgage

Fridge03

Hi all,

Hopefully those of you in the know will be able to give me a rough idea. I know without knowing the exact in's and out's I won't get an exact answer but just a bit of guidance.

Realistically, what are the chances of getting a mortgage with 2 defaults and a CCJ on file?

All 3 from 2012. All settled. Credit file now in order, no debts apart from phone contract and car finance (which isn't in my name anyway).
I have £20-25k for deposit, £23k salary. I'm only looking at £120k max for my first property so could potentially have 20-25% deposit.
Probably another 6 months away as just started a new job and need to finish probation first.

I'm now sensible and a lot, lot wiser but hate the thought that being young and dumb could effect my first purchase.

Thanks all

kingstreet

Amounts and registration dates of adverse credit and do you have all three versions of your credit file?

Obtain these, if you haven't already and out the dates and amounts in the hands of a broker.

Fridge03

I never owed more than £500. They were stupid PD loans.

I have access to all 3 credit reports, all tally up with each other and more importantly all are now clean.

kingstreet

So none appear on any of your credit files, or are you using a different meaning to "clean" than usual?

Fridge03

Sorry, yeah they do still appear. By clean I meant, everything paid off, settled, done and dusted.

kingstreet

The industry definition of clean is completely lacking in adverse credit issues.

You need to put your stuff in front of a broker, either way.

Fridge03

Ah, well you learn something new everyday!

Thanks, I know I'm not probably high street lender material but I need to get on the ladder somewhere! I've got everything in place, so hopefully my idiocy in my younger years won't count against me too much.

BarleyGB

I think youre going to struggle on a number of factors, myadvice is go and see an independent financial adviser who can assess yourcircumstances and place you with the lenders who will potentially lend.

The problems I foresee are:

Recent adverse credit, even though its settled its not that long ago

History of payday lending , even when settled this is a redflag for some lenders

High lending multiple, youre looking for 4x income, also presents affordabilityissues on lower incomes
Affordability (as per above), Mortgage MarketReview requires lenders to make strict affordability assessment based onaverage ONS date for household expenditure and include mortgage repayments on a‘stressed rate’. £23k income is about£1500 per month net, that doesn’t leave a lot to cover general expenditure theabove are taken off.

That doesn’t include the car finance you’ve already implied was taken out foryou by someone else and suggested you wouldn’t divulge to a lender.

Employment stability, you’ve only just started your current job.


Any lender worth their salt is going to want to see 6 months bank statements,they will be looking to validate youraffordability calculations and see evidence of a self saved deposit.


Doesn’t look good in my opinion, id mainly be concerned with the affordability(is the deposit self saved), does your bank account / savings transactionhistory show the ‘stressed’ monthly mortgage commitment £500 per month? as excessover your current expenditure. You’llneed to show that to have any hope in convincing them that you’ve changed yourspots as it wasn’t long ago you apparently had no savings and was “robbing Peterto pay Paul”

BarleyGB

Do you really need to get on the ladder now? Some people think the market is reaching a bubble? Personally I dont think it is but I wonder about your motivation if youre so desperate that youll consider lenders who charge a premium rate.

Is it worth saddling yourself with a mortgage which could leave you struggling for years to come e.g. 6-7%? interest

What about saving a little harder and strengthening your situation, waiting for the recent poor credit to drift further into history.

Another relevant question and something lenders will be looking to see. Are you currently renting, can you show a history of rentail payments maintained?

Fridge03

I've lived with parents for 2 years now. I had previously rented for 4 years.

I'm not looking to buy now. It'll be in at least 6 months times.

-Cheryl-

Your best option is to find a mortgage broker who will point u in the right direction. They may ask a fee though. Some up to £300!

Good luck x