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Mortgage eligibility

edited 30 November -1 at 1:00AM in Mortgages & Endowments
5 replies 1.1K views
herbgardiniaherbgardinia Forumite
23 Posts
Fifth Anniversary Combo Breaker
edited 30 November -1 at 1:00AM in Mortgages & Endowments
Hi -

I appreciate that no-one can give me a definite answer to this question, and I fully intend to approach an independent mortgage adviser for their advice also, especially with the multiple issues involved. My plan had been to continue to save for my deposit over the next 6-10 months and that would have put me in a very good position to buy as my credit card balance would be paid off and I would have moved from a temporary to permanent contract.

My gut feeling is at the moment I'm likely to be turned down. However, I have seen a house in the location I want, and I can't help wondering...

I would be seeking to borrow approximately 160,000 (90-95% LTV), so low deposit but well within affordability range. First time buyer so no chain.

The plus point is:
- High salary: 75,000 (sole application)

but the many negative issues are:
- Currently contract is 'Temporary' (continuously employed for last ten years but move location frequently so contract is temporary every time with different institutions). This is likely to change in next six months.
- Paying 8000 loan off at 397/month (expires 2017)
- Paying 4000 credit card off at 400/month (0% interest until 2016). At current rate of payment, should clear balance Nov '15.
- Only 5-10% deposit currently
- 1 satisfied default on my credit file from 2012 (for £160 from Open University, for a course - mixup about payments - but can't be removed from credit file, I have checked).
- 2 late payments on an overdraft I was repaying(now paid off)
- No other outstanding debts apart from loan and the 0% credit card.

I have checked my credit files on experian and equifax recently - they are accurate and show the default.

So... is it even worth going to an independent mortgage advisor or is there just too much there to get a high LTV mortgage?

In ten months, I will be permanent/card paid off/late payments though not the default off my file, and with a higher deposit.

The house is the ideal location near to family, and represents a good value purchase as the vendors are looking for a quick sale.

Any advice? Brutal as you like. Am I being mad to even consider it?


  • amnblogamnblog Forumite
    11.8K Posts
    Eighth Anniversary 10,000 Posts Name Dropper Photogenic
    Why would not try, to see if it is acheivable?
    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.
  • ThrugelmirThrugelmir Forumite
    81.6K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    2 late payments on an overdraft I was repaying(now paid off)

    An overdraft and late payments don't auger well. Suggests that you had to enter an arrangement to pay for some reason. Given your £75k a year income. Obviously more to the tale. That potential lenders will digest when they view your last past 72 months credit history.

    Affordability is one part of the equation.
    It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
  • What if that house you are after sells by the time you plan to buy?
  • Are house prices going up in the area you are looking to buy?
  • herbgardiniaherbgardinia Forumite
    23 Posts
    Fifth Anniversary Combo Breaker
    Thanks for answers so far. Will talk to an IFA though suspect they will tell me I'll be in a much stronger position in six months or so.

    House prices have remained static for a while - maybe a slow rise.

    No more to the story than I've stated. I had gone into the overdraft ages ago and remained in it. My wages were no longer going into that bank account so they asked me to pay the overdraft back which I did over five months or so. But it shows up as late payments on my credit record.
This discussion has been closed.
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