FTB Mortgage Probability

B1989

Hi All,

Myself and my partner are looking to purchase a property within the next few months. We are planning on a 5-7% deposit using the help to buy mortgage guarantee.

Our credit ratings are both excellent on experian. My last missed payment was in April 2010 and my partners was March 2011.

A month or so ago we were interested in a new build and achieved a DIP with Skipton BS and passed a credit check. Due to a change of heart we would like an older property and therefore didn't proceed.

I would like to know the probability of us achieving a mortgage? If anyone can help

More info :

Me £21k salary
Bonus £1k
No debt whatsoever

Partner £23k salary
Bonus £5k
£1,700 car finance
£200 credit card

Current savings £12.5k, house price £190,000-£200,000

Broker seems to think we could secure up to £203k and isnt worried about the missed payments from 4+ years ago.

Our bank accounts are in great shape the last 3/4 months. Never had any ccj's or anything similar. I also had another question - does our missed payment class as default? On the credit reports they just show as a '1' on experian

Thanks guys

stator

If they show as late payments, they aren't classed as defaults.

Help to Buy equity loan mortgages (new build) are different from Help to buy Mortgage Guarantee (old houses), I am pretty sure you will have to apply again.

I don't see why you wouldn't get a mortgage, they will offer you something. Get an AIP to see if they can meet your expectations

kingstreet

AFAIK Skipton doesn't offer HTB - MG, so it's going to be a new app to a new lender, I'm afraid.

Credit-Crunched

£190k mortgage on £45k income. Does that not bother you?

What about an increase in interest rates, loss of job, illness?

I would personally want a lower LTV on a lower value property to give me some breathing space.

95% mortgages are not to be taken lightly.

Does your deposit take into account any fees that need to be paid?

Do you have money to furnish the property?

Any nest egg to set aside for emergencies?

B1989

When we originally went through the application our broker advised we could look at £203k using the mortgage guarantee and affordability should be fine as we are both living at home at the moment.

We have been storing furniture and goods for the last 2 years in a unit and are well and truely in a strong position with regards to house finishings
etc..

Loss of job - I am only young but been with my employer 7 years and my partner 4 years and both have generous redundancy schemes. Illness is covered through my employer again so this is all ok.

Currently myself and my partners joing income is around £2,500 after bills (excluding rent) so we are pretty fine with the affordability and meeting the stress tests.

Thanks for all the other info guys. We would look to do a new app my main concern was the credit scoring.

The aforementioned deposit was deposit only. We are in a position to save around £1900 per month forfees, stamp duty etc..

Unfortunately the area we live, you cannot get much for £180k so we would be looking nearer the £200k mark