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Pre flight checks for first time mortgage
samuelpeeps87
Posts: 2 Newbie
Hi all,
After doing a fair bit of research over the past few months, I thought it was about time I signed up on here and asked the questions which have been bothering me!
I'm planning on applying for my first mortgage shortly after Christmas (joint application with my girlfriend), however a string of stupid/careless financial mistakes over the past couple of years are haunting me.
In a nutshell:
I have 4 late payments within the past 12 months (which will drop to 2 after Christmas).
Using 15% of available credit (£2,100.00 limit on CC's)
I have taken out an Aqua CC back in May which I have paid off in full on time ever since.
My credit rating has improved from poor to good in the past 7 months. I am aware nobody see's this but me! However hopefully it gives me a good indication.
We will be putting down a 15% deposit.
I earn £36K per year + £8K in bonuses + £6K car allowance
My girlfriend earns £22K per year
So my questions are as follows:
Will my string of payday loans affect my chances of getting a mortgage?
Will the missed payments have the same affect?
Should I go for the mainstream lenders or apply to the subprime lenders which I will have more of a chance of approval?
I have been worrying about this for sometime and cannot put off the application much longer, however some advice would be greatly appreciated.
Many thanks
Sam
After doing a fair bit of research over the past few months, I thought it was about time I signed up on here and asked the questions which have been bothering me!
I'm planning on applying for my first mortgage shortly after Christmas (joint application with my girlfriend), however a string of stupid/careless financial mistakes over the past couple of years are haunting me.
In a nutshell:
I have 4 late payments within the past 12 months (which will drop to 2 after Christmas).
Using 15% of available credit (£2,100.00 limit on CC's)
I have taken out an Aqua CC back in May which I have paid off in full on time ever since.
My credit rating has improved from poor to good in the past 7 months. I am aware nobody see's this but me! However hopefully it gives me a good indication.
We will be putting down a 15% deposit.
I earn £36K per year + £8K in bonuses + £6K car allowance
My girlfriend earns £22K per year
So my questions are as follows:
Will my string of payday loans affect my chances of getting a mortgage?
Will the missed payments have the same affect?
Should I go for the mainstream lenders or apply to the subprime lenders which I will have more of a chance of approval?
I have been worrying about this for sometime and cannot put off the application much longer, however some advice would be greatly appreciated.
Many thanks
Sam
0
Comments
-
In your situation I would without doubt get a broker.
I am not sure if any "mainstream" lenders will even acknowledge you with payday loans in the past 12 months I'm afraid.0 -
The payday loans will be a problem with some lenders.
A broker will guide you through and get you sorted.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
The payday loans will be a problem with some lenders.
A broker will guide you through and get you sorted.
Will a decent broker know which lenders will turn down a application with PDL's in the past 12 months?
Do you think it will be worth waiting until the loans are past 12 months old?0 -
Yes they willI am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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