Can any advisors help with what I could borrow?

24.princess

Hi there

I was hoping someone might be able to help with my situation or point me in the direction of a good mortgage advisor that may be prepared to take on my case.

I have recently sold my property (to the council as the street is under compulsory purchase so U didn't really have a choice)

I should have £40,000 as deposit for a new property.

I have one dependent child (aged 5) and will be the only applicant for the mortgage. The current mortgage is in my name only but her father and I have lived together (but are now separating)

I am a teacher and was employed on a temporary contract by a school which ended at the end of July. However, the same school have now taken me on permanently and with a small payrise and this will start on September 1st.
My new salary will be £34,113 (previous salary was £31,600)

I have had historic credit issues- looking at my equifax report there was a defaulted current account in 2010, a defaulted store card in 2011 (both settled) and everything else looks Ok.

So, my questions are- am I looking for a specialist mortgage and what figure may I hope to borrow?

If anyone can advise I would be really grateful
Thanks

ACG

£180k purchase price should be achievable up to around £200k.

Its probably not a bad idea to speak to a broker, just to avoid the lenders who would not lik the defaults, but im sure there will be options for you.

Its worth getting all 3 credits reports - equifax, experian, noddle.co.uk

24.princess

Wow- thanks for quick reply and I'm pleased, I wasn't expecting as high as £180,000!

Any advise about finding a broker? Is it really something I can just google? (I see from your signature that you are one!)

ACG

I should have added my little get out clause... £180k subject to the rest of your situation

I would avoid estate agent based brokers (just have a look at the stories on this site). Can you ask friends/family? If not then yes I would just jump on google.

Thrugelmir

24.princess wrote: »

Wow- thanks for quick reply and I'm pleased, I wasn't expecting as high as £180,000!

Recommend you draw up a personal budget for your household. As you should only borrow what you are comfortable with. More to a life than carrying a ball and chain (mortgage).

JustinR1979

£130-140k, about £900 a month I reckon, achievable enough?

24.princess

Thanks everybody.

I got my noddle and experian reports today which all say the same thing (although something on noddle about not being on edited electoral roll which I don't understand)

Unfortunately I don't know anybody who's used a broker so I did some googling and emailing and got someone calling me back tomorrow.

I will be careful with affordability... The £900 made me wince, so I guess I want to borrow less and have lower payments!

24.princess

Does this sound right?
I googled some brokers and made an appointment to see one next week, but he said the fees were due (£499) on application.

Is this how it's normally done?

Mortgage_Mark_2

24.princess wrote: »

Does this sound right?
I googled some brokers and made an appointment to see one next week, but he said the fees were due (£499) on application.

Is this how it's normally done?

The majority charge; some on application, some on offer, some on completion.

We, for example, charge £695 on application, however we are a niche broker and our cases require a lot more work/chasing/research than the 'standard' PAYE employee application.

Countrywide, the biggest estate agent based broker, charge £249.

24.princess

I don't mind paying, or even the amount, I'm just worried about the on application bit... As I'm concerned that I'd pay that money and then NOT get the offer I needed

MLSY

if charged on application is it refundable if they cant get you an offer ?

different story if you change your mind after application then you would expect no refund