We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
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
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 355.7K Banking & Borrowing
- 254.9K Reduce Debt & Boost Income
- 456.1K Spending & Discounts
- 248.2K Work, Benefits & Business
- 605.8K Mortgages, Homes & Bills
- 179K Life & Family
- 263.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.7K Read-Only Boards