Is this possible

JAMESW

Hi, New to this board and am looking for some advise on what is possible or not.


Ok the bad news...


I am recently divorced up until 2 months ago.
The martial home has now been sold and the funds from the household have been received
In the time leading up to the house sale I was struggling financially trying to keep up with mortgage payments, card payments etc, I stupidly took out Pay Day Loans, as my ex wife was still living in the property and I had to pay the mortgage, bills etc. Wont bore you with the details! But I was 3 payments in arrears on a Barclaycard balance of £5k and a Tesco Loan of £7000 balance and in total had £30k of unsecured debt. I have no CCJ's, not in an IVA, just late payments.


Now the good bit...


Since the funds from the house sale have been received and I have managed to pay off a large chunk of my debt and only have the following outstanding:


Tesco Loan - £236 per month £6800 balance
Car Finance - £228 per month £7000 balance


which are all up to date. My Experian credit score is improving all the time. From V Poor to Fair with a score of 720


I have a new partner who I have been seeing for a year and a half and she owns her own property outright.


I have a relatively large bonus from work due and combined we will have a large deposit of around £320,000


We are looking at purchasing a property for around £480,000, so with legal fees etc will be looking for a mortgage of around £170,000. So we will have a 65% deposit.


Unfortunately or fortunately we live in an expensive part of the country and we really need a 3/4 bedroom house (Currently we live at hers which is a 2 bed) so realistically £480,000 would be the cost of a modest 3 bed semi in the area.


Our Combined income is as follows:


Mine - Full time Employed - £42,000 per annum
Hers - Self Employed for the last 7 years. Last year £7200, Year 2 £13,000 Year 3 £14600


I have a couple of questions:


Would a high street lender consider us, bearing in mind my recent late payments and pay day loans but high deposit?


What income multiples would we be able to get bearing in mind my partner is self employed?


Thanks

amnblog

JAMESW wrote: »

1. Would a high street lender consider us, bearing in mind my recent late payments and pay day loans but high deposit?


2. What income multiples would we be able to get bearing in mind my partner is self employed?

1. I don't see why they should


2. Affordability does not look like the issue


OFAB

JAMESW

Thank you for your reply. Are you saying you don't see why they should consider us? If not would a non high street lender look at our case?

amnblog

OFAB


One for a broker.


I suspect you are looking off of the high street

LiveSimply

Sorry to butt in, would a broker be better for the person with non typical finances, is that why some people go to a broker?

amnblog

LiveSimply wrote: »

Sorry to butt in, would a broker be better for the person with non typical finances, is that why some people go to a broker?

That is exactly where a broker would be most useful.

JAMESW

Thanks for your help. Are there any brokers on here who would be able to advise whether a high street lender would consider us? I would of said that we would be relatively low risk due to the large deposit but what do I know!

dimbo61

A whole new world with MMR!
I have used a "whole of market mortgage broker" in my local area Cheshire who helped me remortgage a couple of properties last year.
Without her help I would not have been able to get the deals and fill out all the paperwork.
Question " How much do you spend on a hair cut" that was on the list of information asked by a couple of lenders

andyfromotley

JAMESW wrote: »

Thanks for your help. Are there any brokers on here who would be able to advise whether a high street lender would consider us? I would of said that we would be relatively low risk due to the large deposit but what do I know!

But you are not. According to your credit history, you had credit that you could not service. You missed payments and you acquired unsecured debt equivalent to 75% of your income. You still have unsecured debt of nearly 40% of your income.

(not criticising, just pointing out how you look to a lender)

You are not low risk in regard to paying back this mortgage. Which is what lenders are interested in. Of course there is a low risk that the lender would lose their money because as you have identified you have a low LTV. But to do that they would have to default you/go to court/ rack up expenses and this is not what they want to do.

Broker.

Landofwood

320k deposit and loan debt

Riiiiight.

JAMESW

I would say I was low risk with a 35% LTV.

A large majority of the deposit is from my partner. I am contributing around £15k.

One of my debt is car finance. Happy to let that run. The other loan I could pay off but obviously it will lessen the deposit. Swings and roundabouts.

So there is little chance of a high street lender looking at this?