Please tell me there is hope

Suzuka96

Little background I currently have mortgage with HSBC and never missed payment
I have 3 ccj one for 1400 which will drop of records this dec
Other two are from 2012 and totall £4500 (am paying all off at £500 per month and will be totally settled when sell current property)

Husband is on fixed term civil service contract (14 months left to run) earns £15k
I have been with my job over a year earning £37500 (top 4 accountancy firm)

Husband has perfect credit rating. On selling property we will be left with nada so husband is thinking of borrowing deposit from Santander (at 4.7% over 5years)

I want to borrow £102000 over 25 years (property value £120000 so 85% mortgage). As multiples look ok we could do this just in my name if necessary.
Do we stand any chance at getting a mortgage ?

Purplesky_2

Wow. Ok, there's a few thing here, so I'll try to bullet point them.

-First and foremost, you CANNOT borrow a deposit. Unfortunately, there are no shortcuts to a deposit. You must simply save. You can do this by overpaying your current mortgage or saving elsewhere. ((The reason you can't borrow a deposit is because your 'share' of the property is the first to get hit if the property value decreases. If your property decreases in value by £10k, then that is £10k of your money gone, but can still sell the house to pay back your loan. What if you're forced to move in a slump and have borrowed your deposit? you can pay off the mortgage with the house sale, but you woul dstill have htis other debt.)

-Secondly having a fixed term contract is challenging but not impossible. When you have a deposit, look up a mortgage broker and they'll be able to help you through the process.

-Thirdly, the credit history isn't great. Again, you could probably get something through a broker, but the terms probably wouldn't be great. (Higher interest rate and/or reduced income multiples)

-Finally, all the things mentioned above (Existing loan/defaults, new 'deposit' loan plus a mortgage) strain your affordability. What happens if the boiler fails in the first couple of weeks, or you discover that the bathroom floor or roof is about to cave?

Really, you need to assess why you want to move (not mentioned here - why all the 'sudden' activity?) and slog for a deposit and other associated costs (mortgage fees, moving fees, solicitors fees to name a few). The time taken to accrue a deposit will also help you because your defaults will move further into the past.

I would try and come up with a different plan, even if that means selling your house and renting somewhere cheap while you build up savings. More than one way to skin a cat after all?

Suzuka96

Hi thank you for your response. Reason for move is living in a one bedroom flat with a two year old is getting a bit cramped.

Affordibility for us shouldnt be a problem for us even after deducting loan as we wont have large debts to repay anymore as we would be totally debt free.

Is it something official that has changed re loa. For deposit as that is the way i raised my deposit 10 years ago and without this option it will take years to be a position to save for a deposit.

TBeckett100

Sorry but it isn't going to happen. With that credit rating you won't fly under anyone's radar and you can't borrow a deposit.

Personally I'd rent out the flat and rent a bigger home. Solves the space issue, keeps you on the property ladder and buys you a few years to save for a deposit

Suzuka96

Just thought of something if I was to try to get a mortgage just in my name(or in jtthat improves our chances) and oh was to get a loan in his name to pay of the exciting debts that would leave enough equity in the property to pay a deposit. Would that work?

Also does credit expert credit score actually mean anything as it's showing me with a good creit score ?

I have considered the renting option but my current mortgage is roughly £200 more than I would get for the property rented and then there is also the issue of tax on the income, I would also still have the debts to repay each month for at least another two years and the values of the area I am currently in just seem to be depreciating rather than appreciating ( one of the reasons I have no equity)

betmunch

Just want to correct something that has been touted round as a fact above.

You CAN borrow the deposit, although most, nearly all, lenders will not accept this. You will also struggle to find an unsecured lender willing to offer a loan as a house deposit.

You should speak to a broker that has good experience with adverse credit mortgages to see if the rest of your situation will exclude you from getting a mortgage.

Mortgage_Mark_2

Suzuka96 wrote: »

Also does credit expert credit score actually mean anything as it's showing me with a good creit score ?

It means NOTHING. Absolutely nada.

Teqpro

Im afraid you need to speak to a mortgage adviser or a money expert that is going to tell you some hard truths. both your total incomes is over £50K so thats your hope, take your time and settle those CCJ's before you do anything else since waiting till 2018 is too long.

First add a notice of correction on your CCJ's, also I would phone the companies up and negotiate a final settlement figure on the outstanding debts some even discount them down to 70%. Once paid get them on the spot and request them to amend your credit file as settled.

i Agree you should rent out the flat and rent yourself a 2 bedroom flat.

I'm no expert but i learnt the hard way