Sub Prime Mortgage Chances?

Jambutties

Hi there!

So, I'm signed in using my sisters account since she doesn't use it anyway, hopefully that's ok?

Anyway, I'm hoping someone can give me some advice (perhaps someone may be/have been in a similar situation as me?) as I've a terrible credit history, on the mend and hoping to get a decent deposit saved over the course of the next 3-5 years.

So, I'm a guy who has just turned 39.

I went bankrupt about 10 years ago (April 2004 and discharged in October the same year) and have been on a DMP for close to 2 years and on target to finish it off before the end of this year!

I am currently on just under £25k, have been with my current employer for 8 and a quarter years, I have a few grand in shares (it's a company share scheme so I pay £40 pcm and I get £120 free but it's all tied up for 5 years) and so far have amassed a pension pot of £28k - I'm not sure if any or all of this is relevant, hence the info dump.

When my DMP is paid I aim to save £800 pcm for 4-5 years which would come to £38400-48000 although I do receive annual bonuses which could bring this up to £42000-52000.

I'm aware that at this stage I'll be 44/45 so would likely have to repay any mortgage over a 15-20 year period assuming I can actually get one!

Which brings me to my question, is my getting a mortgage even a possibility based on this info?

I've learned my lessons and have paid (or will have) my dues but I'm getting old... That and I've been a financial clown

Based on current property prices and taking my anticipated deposit into account I'll be looking to borrow £100-120k as properties I'm looking at are £130-150k.

Also can anyone recommend websites or brokers or lenders who I can swot up on in the meantime?

Thank you!!!

Jambutties

Oh, I should add that the shares at the end of 5 years if they held at around the current trading price would be worth in the region of another £4k give or take

ACG

Definitely definitely one for a broker.
I think you could potentially look to buy in around 12-24 months but if its going to take you longer than that to save, then you should be ok but your choice of lenders will be pretty limited.

Jambutties

Hi AGC

Yeah... That's sort of what I'm thinking...

I was told that after a few years I'd likely be able to "trade up" to a more mainstream one?

I'm not sure how likely that is, I'm assuming that a couple of years of credit history showing payments made on time, etc would help me?

Ta

ACG

Probably yes.
It will probably be more like 4-6 years before you can look to get something more normal but im sure you will get there.

Jambutties

Thanks, that's reassuring

I was worried that with my past, I wouldn't even find someone to touch me with a barge pole!

Thrugelmir

Jambutties wrote: »

I'm not sure how likely that is, I'm assuming that a couple of years of credit history showing payments made on time, etc would help me?

Showing a commitment to clearing your debts and learning to manage your finances without the need to borrow money day to day. Would be a major boost to your chances.

cns06

Factor in house prices going up c.5-10% PA and rates being higher in 5 years. If neither happen then you are in a better position deposit wise but it may impact your plans.