Mortgage Chances

closer123

Hi,

Just looking for some advice/tips/encouragement??? on getting a mortgage in about 12 months from now.

Some background- although we have owned property in the past we sold our last property in 2011 and were left with very little equity. Trying to keep a very long story short but after closing a business in 2007 we took a lot of financial hits and reduction in income.

This has meant I acquired three defaults over a couple of turbulent years. However, all will be gone from my file over the course of this year. My Experian credit rating currently reads 'Excellent' but Equifax and Callcredit are both 'fair' because of these defaults.

I have been in a stable job for 7 years with the same employer. The only 'active' debt on my file are mobile contracts. We have no overdraft or credit cards. Our joint income is approx £56K pa- but we could boost this to £65K.

Our preferred route would be to do a self-build (husband has a related trade). Where we live (and this could potentially be a spanner as we are on an Island off Mainland Scotland) we could get a plot for £20-£40K and could likely do the build for circa £100K. The alternative would be a cheap 'fixer upper'.

I just want to get an idea of what kind of deposit we would need and if we have a cat in hells chance?

I am 40 and husband is 41.

Levi-

Good chance Use a broker with 'whole of market' access.

ACG

Probably best holding fire until the defaults drop off as self build is not a particularly big market so your options are going to be limited.
Combining that with an island off scotland and you are probably getting down to very slim pickings. Trying to do all of that with adverse and its going to be like a needle in a haystack.

Self build as far as im aware needs a 20% deposit.

closer123

Thanks Levi!!! I have felt like such a financial leper these past few years. After previously having an 'impeccable' record. I've had a mortgage from HSBC in the past for £250K - those gits are the ones who placed the sodding defaults! We banked with them business wise and unfortunately personally. When we shut the business (after clearing the business overdraft) they renegaded on an agreement for a completely new business overdraft. They instead opened us a second 'personal' account (more branch sales) and gave us an overdraft that way and then promptly pulled the rug from under us- demanded full repayment (when they knew we weren't in a position to do it).

With hindsight I should have fought it back then. But my fight was all about lifting my husband and putting food on the table. It has cost me very dearly.

I do think I'm going to need a specific type of broker to go down the self-build route. So if anyone has any recommendations???
In the long run it would be cheaper to build our own 'right first time'.

closer123

Thanks ACG. I had thought about 20% sounded right. Though have seen some such as the Ecology offer 90%.

closer123

So maybe the 'fixer upper' might be an easier start point? Just felt it would be a false economy in the long run as a self build would get us what we want first time around for less. It's annoying there would be greater access to lenders for a wreck which would likely cost more to make habitable.