Any chance of me being able to get a mortgage?

sunshine1980

Hello

I wonder if there are any mortgage advisors or people who have been in similar circumstances who could advise.

I am just wondering what my chances of getting a mortgage are. I will let you know my circumstances.

I am 34 years old, a single mum with 3 year old child.

I live in a Yorkshire Housing property. It is not social housing it is affordable rent so I pay the rent less 20% the market rate (£460pm). I have enquired about buying the house shared ownership at 25%. I live in a new build development and the houses in our cul-de-sac are all affordable housing. The houses are valued at £110,000 (next door just re-mortgaged) although a house opposite me was sold for £100,000 (25% shared ownership) after initially being on market for £110,000. The service charge is £70 per month and no rent is payable on the remainder.

I work part-time, earning £10,500 per year (£800 per month). I also get:

tax credits : £445 every 4 weeks
maintenance : £325pm
child benefit: £88pm

After all outgoings including bills, food, childcare and credit card - everything - have been paid I have around £320pm left.

I pay £100pm off my credit card which I owe £2,800. I owe £200 on my argos card but this is because it was a Dyson on interest free and I can pay this off now if I want. Also got a sofa from DFS at £20pm again I can pay this off straight away.

I have £1,000 in savings.

My childcare works out at c. £20 per week but will probably be less than this as child in school and just need some childcare in holidays.

I have been in my job 5 years. I have no adverse credit. I have however had credit cards and a loan in the past. The loan was paid off 10 years ago and it was over 5 years and I paid it off 2 years early. My credit cards have always been paid on time but have at times had "revolving credit" on. I am not using my credit card anymore (except to pay for things online then pay off straight away with transfer from bank account) and am paying £100pm off the £2,800 currently owing.

I would like to buy a 25% share of property so c. £27,500. What would be the minumum deposit I would need? Do I need ideally 10% of £110,000 or can it be a smaller amount if the mortgage is only for £27,500. When I have the required deposit do you think I will be able to obtain a mortgage or are there things I will need to do?

I would be grateful for any help or advice. The lady next door only pays £270pm mortgage and £70pm service charge so less than I pay in rent.

Thanks in advance.

chanz4

10% of your share, so £27500 would be 2750 , plus add on legal costs about 1k

maninthestreet

Clear your CC debt first.

jimjames

maninthestreet wrote: »

Clear your CC debt first.

Absolutely.

If you have £2800 on credit card paying interest and £1000 in savings then you really do not have any savings, your net balance is -£1800.

There is no point having money in savings at 1% while paying out at 30% on a credit card.

London2014

Hello,

Just a bit of advice needed similar to the above message.

I am looking at purchasing a 50% share in a property worth £300000.
I have a £10000 deposit. This has all passed the affordability assessment however im slightly worried because I have a default registered on my file in 2009. This has all been cleared and I have had no adverse credit since.

Me and my wife are both full time employed and have a joint income of £60000. We both have credit card balances of around £1000 each and I have a HP car loan for £4000 still outstanding, both our credit files look fine on experian.

Given the above would anyone know if we would get accepted or declined or know anyone in similar circs?

OneEngland

London2014 wrote: »

Hello,

Just a bit of advice needed similar to the above message.

I am looking at purchasing a 50% share in a property worth £300000.
I have a £10000 deposit. This has all passed the affordability assessment however im slightly worried because I have a default registered on my file in 2009. This has all been cleared and I have had no adverse credit since.

Me and my wife are both full time employed and have a joint income of £60000. We both have credit card balances of around £1000 each and I have a HP car loan for £4000 still outstanding, both our credit files look fine on experian.

Given the above would anyone know if we would get accepted or declined or know anyone in similar circs?

How much was the default for and how long after it was registered was it cleared?

There is only one lender I can think of and depending on the value of the default, they should be happy to lend subject to the usual affordability assessment