Mortgage chance!!

dorisp

I would like to get some advise as to whether myself and partner could get a mortgage. We have found a house worth 137,000 and have a deposit of 70,000. We need a mortgage for £67,000. We have a default on our credit file on an outstanding debt with a high street bank which has now been sold on several times, this debt goes back 10 years and we have a payment plan set up which we have always paid. They defaulted the debt when they sold it on. It totals approx. £20,000 which a large part is interest!! We are intending to pay the balance off as soon as we settle on a figure both parties are happy with. My partner is self-employed with 2 years of books net profit approx. £10,000. We know that the repayments on the mortgage would be less than our rent each month, we have rented our house for 20 years and always paid the rent!! we are so frustrated that we can't make our first step up onto the housing ladder and not sure where to turn!! We would love some advice................

Thrugelmir

If you've the funds why not simply clear the debt. Every month you are paying you rent it's costing money.

tvfreek

Go and see a broker Doris the assessement of self employed income for afordability differs from one lender to another.

Shouldn't be too much of an issue.

dorisp

We have been to two mortgage brokers who both refused mortgages based on not enough income, we know we have enough income as we are paying more in rent. is it really realistic to think we might get one??

Jack_Johnson_the_acorn

dorisp wrote: »

We have been to two mortgage brokers who both refused mortgages based on not enough income, we know we have enough income as we are paying more in rent. is it really realistic to think we might get one??

only 10k income? is the deposit an inheritance? it must be....

GMS

Is the £10,000 the only income?


If so you will fail affordability massively.

ACG

Your not going to get a £67k mortgage with an income of £10k... if you carry on trying you are just wasting your own time.

From that £10k you have 2 mouths to feed, bills, your current debt to pay for and the mortgage.

Bare in mind interest rates are at an all time low and will only be increasing. Most lenders assess affordability on a rate of around 6-7%, some higher.

At best you would get 4.5x income and thats the cap put in place (or will be shortly - but a lot of lenders are falling in line with it now) but I dont even think you will get that much.

You need to be realistic. Its very rare I say something cant be done - but this just will not happen.