First time buyer options?

mancbarry

Hi guys hope someone here can offer me some advise.
My situation is a first time buyer with an income of £32000 and a deposit of £50000 This houses i am looking at are between £160000-£180000.

So a loan of between £110000 and £130000 would be needed

Heres the problem i have 2 very small defaults on my credit file from 4/5 years ago one for around £100 and one for around £50.

My credit rating is also classed as fair as i do have some outstanding credit cards to pay off, but think this could be improved quite quickly.
Do you think i would get a mortgage based on the above?
Thanks

stator

Yes I do

csgohan4

Clear your credit card bills and ensure you have 3 months of clean statements, no fancy restaurants or shopping in Prada during that time.

Pay you credit cards in full every month and ensure your credit rating is as best as it can be, no credit applications (Loan, credit card e.t.c) within 6 months if possible, certainly not within 3 months of mortgage application.

Maybe time to cancel Sky or other unncessary extras until you get a mortgage. Or you could give them money to put yourself in credit so it wont show on your bank statement for the next 3 months.

You should have no problem getting a mortgage

madchester

Thanks for the advice guys, going to take it and do a 3 month clean up and see where I am then.

Landofwood

csgohan4 wrote: »

Clear your credit card bills and ensure you have 3 months of clean statements, no fancy restaurants or shopping in Prada during that time.

Did you read this in The Daily Mail?

kingstreet

Landofwood wrote: »

Did you read this in The Daily Mail?

Post-MMR media hysteria from about 1 May 2014...

Beans on toast for three months ensures the biggest mortgage.

madchester

Do all lenders just ask for 3 months pay slips or are some 6?

kingstreet

Some one month.

Some three months.

I can't think of any lender with a standard six month requirement. It is possible that there may be an extended requirement if there is something unusual in your case, such as CIS sub-conrtactor.

csgohan4

Landofwood wrote: »

Did you read this in The Daily Mail?

what is the Daily Mail? Some brand of toilet paper?


In regards to the monthly statements, I asked that as well in a previous thread, thanks Kingstreet for answering that. I am preparing myself to buy a house in 3 months time. If they ask for 6 months that would not be good for me


Don't forget to sign up to Experian and check any anomalies, I saw two fraudulent applications and sorted it quickly before it affected my score.


No point in putting yourself in credit for utilities/essentials as it would be silly not to have any outgoings for electricity as the broker will be suspicious, unless your a tree hugger.


Some people on here also advocate using cash withdrawal and then they can't track what you spend it on.

kingstreet

You asked about bank statements, my reply here is about payslips.

Same applies - it varies from lender to lender.

lizards

We had to apply for a huge 95% HTB mortgage in a hurry a few weeks ago, and our bank statements were - if not overdrawn - not exactly the model of spending behaviour. Nothing like gambling, but plenty of frivolous stuff - takeaways, Amazon (to put it mildly), clothes shopping, gadget buying.. heck, there was all our Christmas shopping on it too!

Lender was fine with it, and it's been approved subject to valuation (fingers crossed). We went through a broker and they asked precisely ZERO questions about our expenditure (although to be fair we have good affordability). They asked a lot about our income and the form it took, but it really seemed like they could not care less about my visits to TK Maxx and judicious use of Just Eat.

Part of me wonders if they saw an absolutely squeaky clean bank statement if they wondered what was being hidden. A clearly "typical" statement with all those lifestyle choice things on gives them a much better picture and maybe they can see you have money to spare to waste on such things!

Anyway, I'm not a professional so I'll always defer to those who are on here, but just giving my experience.