Is it possible to get a mortgage given these facts...

woolythoughts

UPDATE:

We completed on the house purchase today and have the keys. Thanks to all who gave advice etc. Now moving over to the mortgage free wannabe board I think......

Was relatively straightforward in the end - offered on 1/12 and completed today.

Hi

We've already spent some considerable time with one broker who has not filled us with confidence as what we were told turned out to be incorrect once the broker had checked their facts with their lender of choice on several things.

We are considering going to a new broker but are begining to wonder if its even worth it.

Basic facts:

Me: Assumed to be completely out of the equation for mortgage purposes

Age 38
BR in 2012 and discharged in 2013
Credit file cleaned up with well run credit since then (one mobile phone, one catalogue and two credit cards paid off in full and on time every month)
Currently self employed (IT Contractor) with a net income after expenses and taxes of around 50,000.
Probably permenent job on the horizon paying 70K

We assume the mortgage and house will have to be in husbands name only

Husband:
* Age 55
* IVA completed in 2011 so completely off credit record
* Salary: 47,000
* Pension pot: 302,000 with a 107,000 lump sum and pension income of 16,000 - this is guaranteed final salary and is a railway pension so about as gold plated as you can get
* Only outgoings each month is a CSA payment of £308
* No other debts other than a credit card which I use most of the time as an additional card holder for business expenses and general living expenses and is paid off in full each month - balance is anywhere from 1K to 5K but as I said, paid off in full. If this were to be a problem, we could stop using it for a few months

Property we'd be looking at is in the region of 220-240K and we'd have about a 50-60K deposit.

Previous broker has said that on his salary he could borrow about 180K but only over 11 years which is far too high a monthly payment for comfort at the moment - although if this is actually realistically achievable then I'd look to go permanent for a while so that we had extra guaranteed income as my fear is that as soon as we bought the house, I'd be out of contract and as the purchase would use up most of our savings we wouldnt have a buffer to fall on.

In an ideal world we'd like an 80K repayment mortgage and 100K interest only to be paid off with his lump sum (although in reality the mortgage would likely be paid off long before then if I stayed contracting) however current broker said the lump sum has to be at least 250K (which makes no sense to me as the interest only element would be much less than that and she originally said it was the value of the pension pot that had to be 250K)

If the ideal isnt possible, then we need the longest term available to him.

I've got a couple of brokers recomended to me however before we submit to the roller coaster heartache of being told "yes you can" only to then be told "actually I was wrong" I was wondering if anyone can indicate whether what we want is achievable.

Thanks in advance

kingstreet

Age/term

Recent IVA

Affordability based on term and CSA payment

Interest-only

All issues which if taken in isolation wouldn't be too much of a problem, but added together will need a lot of planning and maybe you deciding which is/isn't a deal-breaker.

ACG

I would not want this on my desk but I do think there may be a lender or 2 for it. There is probably a LOT of work here and even then it may not go through but I do think that it has potential.

I think you would need a very good experienced broker to have a decent chance at getting there.

woolythoughts

Thanks for the info

I have a secondary question.....

I know as a self employed BR my chances of a mortgage in the next decade have two hopes and Bob is dead.....however if I had a permanent job paying 70k plus how long post discharge would it have to be before we'd stand a chance of me getting a mortgage with a 25-30% deposit

If it will definitely have to wait until 2018 then I'd rather stay contracting as we can save more however if it becomes feasible 3-4 years after then I'd be tempted to tAke the permie job.

ACG

With a 25% deposit I would say being discharged for 3 years is probably where some lenders will start looking at it. 30% may help a little but I think that combined with partial interest only is going to be a little tricky.

woolythoughts

ACG wrote: »

With a 25% deposit I would say being discharged for 3 years is probably where some lenders will start looking at it. 30% may help a little but I think that combined with partial interest only is going to be a little tricky.

If I'm able to get a mortgage in my name then interest only isn't a requirement as I'd be able to get a full 25 years.

We will exhaust the avenue of husband in the interim but if I'm beginning to think early 2016 for me to be considered then that permie job begins to look more appealing as by then I'd have been in it a year (so track record) and is hubby can get a repayment mortgage although over a short term, it's stable I come

Thanks

GMS

There could be a solution here. One lender springs to mind.

Engage a broker. Expect to pay a fee and be prepared to jump through hoops though.

You will need IVA satisfaction proof, Bankruptcy Discharge Certificate, proof of pension lump sum etc.

woolythoughts

I've no problem paying a fee - I work in the knowledge business myself and know that good service / advice is well worth paying for

Hoops - I'm a certified hoop jumper lol

lee111s

woolythoughts wrote: »

I've no problem paying a fee - I work in the knowledge business myself and know that good service / advice is well worth paying for

Hoops - I'm a certified hoop jumper lol

Ooooo errr:rotfl:

Mortgage_Mark_2

woolythoughts wrote: »

Thanks for the info

I have a secondary question.....

I know as a self employed BR my chances of a mortgage in the next decade have two hopes and Bob is dead.....however if I had a permanent job paying 70k plus how long post discharge would it have to be before we'd stand a chance of me getting a mortgage with a 25-30% deposit

If it will definitely have to wait until 2018 then I'd rather stay contracting as we can save more however if it becomes feasible 3-4 years after then I'd be tempted to tAke the permie job.

Why do you think your chances would be better in permanent employment than as a contractor? It's the credit history, rather than your employment status that is the issue here, I suspect.