Any mortgage advisors out there?

littlelost

Good afternoon,


I am hoping that someone will be able to help me? We are desperately wanting to move however with issues with out income and a poor credit score I am really not sure if we will be able to get a mortgage.


We have been advised by the estate agent that we can sell our current property for around £160,000 we current have a mortgage of £84,000 so will have £81,000 deposit.


My Husband is a stay at home dad and we rely on my income however there are a number of issues that I feel would effect a mortgage application. My income is made up of salary and bonus every month. My current salary is 24,000 however my bonus' range from £200 a month up to £2,000 a month. In addition to this I also get expenses each month which are regularly between £600-£1000 (these are to cover car, petrol, accommodation etc although often it is the case that I get more than I spend due to mileage calculations etc) however am unsure if these will be included?


As well as salary we have 3 children so get child benefit (does this count towards mortgage costs)


As for my credit rating Experian currently scores it as poor. We hit financial difficulties about 5 years ago and currently have the following defaults:


July 2011 - default amount £28 - This relates to issues when changing gas supplier, we have sought to challenge this on a number of occasions however it remains unresolved.


Feb 2010 - default amount £100 - British gas - this is linked to the above issues


Jan 2009 - default amount £225 - Capital one - this was when we were struggling financially (it is now satisfied).


In addition to the defaults I believe my credit rating is poor as with the exception of my mortgage I do not have any form of credit recorded. I therefore recently applied for a Barclaycard and was approved with a £1,200 balance so am hoping that it may improve over the next 6 months or so.


My Husbands credit score on Experian is considered as "good" although he has the following defaults:


Sep 2009 - Halifax £53
Jan 2010 - British gas - £100 (this is the same default as mine above)


All payments on our current mortgage have always been made on time and up to date.


I think I have provided all the information an advisor would require and my question is what are the chances of getting a mortgage and how much would we be able to get?


Due to my working hours being all over the place and my children now going to school we are looking to buy a property that requires renovation. My Husband is a builder and we are both in agreement that he can use his time during the days to work on the house. We have found property's in our area for about £160,000 but what are the chances that someone would give us an £80,000 mortgage based on all of the above?


Fingers crossed someone will be able to help.


Thanks

littlelost

Also although the property's that we have seen at the moment are around £160,000 what do people think would be the max a lender would be willing to lent?


And do interest only mortgages still exist?

ACG

Edited as I have just seen your second post.

Speak to a broker. With that sort of deposit, most adverse can be overcome.

kingstreet

Consult an independent broker, as suggested.

Yes, child benefit can be taken into account provided your kids aren't leaving school next year. Do you not qualify for tax credits? What was your P60 income for 13/14?

No, expenses refund what you've spent, so they aren't included as they aren't income.

The combination of adverse, number of dependents, need to include variable earnings and lack of positively managed credit will hit credit score with such lenders and affordability with all...

... and no, you are not going to get an interest-only mortgage unless you have a robust repayment vehicle in place. Sale of property/downsizing does not get over that bar...

theoretica

You could also look into porting your current mortgage to the new property.

littlelost

"porting current mortgage" I have never heard of that term, would you mind explaining? My salary for 2012/13 was only £29,000 however I expect this years salary to be around £33,000 if not slightly more.

littlelost

I will try and get an appointment with a local broker, we are not at the stage to sell our house as we are halfway through decorating upstairs but were hoping to around Easter/summer next year if all goes well.

kingstreet

theoretica wrote: »

You could also look into porting your current mortgage to the new property.

You can't transfer a mortgage from one property to another.

The OP may be able to port the rate from the old mortgage to a new one with the same lender, if the existing lender is prepared to lend again.

It isn't a way round status or affordability criteria.

It is a good idea to see if the existing lender will lend again and if the OP doesn't do it directly, the selected broker should certainly do so...