Mortgage Advice

edited 30 November -1 at 1:00AM in Mortgages & Endowments
10 replies 1.1K views
MortgageHelp123MortgageHelp123 Forumite
5 Posts
edited 30 November -1 at 1:00AM in Mortgages & Endowments
Hi

I wonder if you could give me some advice for if I qualify for a 95% mortgage before I make an appointment with a broker.

I earn £43,000 a year and am looking to buy a property for £140,000. I have a 5% deposit of £7000 so am looking to borrow £133,000. I have no dependents or credit card debt but I do have a bank loan which has about £14,000 left on and costs £285 a month.

My credit file has a credit card late payment a year ago and I accidentally went into a non agreed overdraft on my account about 6 months ago but corrected it the following day when I realised.

What are my chances?
Thanks

Replies

  • nic_cnic_c Forumite
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    Have you used affordability calculators on the websites of high street lenders? Don't think the late payment/1 day overdraft will effect you much, but you need to look at affordability, especially if on £43K you only have £7k (do you have more for fees etc?)
  • Yes I have the rest of the money for fees etc. The £7000 is solely for the deposit.

    I've done the calculators on all the high street banks websites that offer 95% and they all say I can borrow the £133,000 needed.

    I just didn't know how hard it is to get a 95% mortgage these days?

    I've recently split with my partner and my half of the equity will only allow for a 95% deposit and wound rather be able to buy another place straight away and get settled again rather than having to rent and save for a year and therefore keep moving.
  • Does anyone know if a mortgage broker would be likely able to place this at 95% Mortgage with the above circumstances?
  • Does anyone know if a mortgage broker would be likely able to place this at 95% Mortgage with the above circumstances?

    You've nothing to lose by sitting down with a broker and discussing your circumstances. Most won't charge for this and they'll be in a far better position to advise than most on here as they'll be in a position to get the pertinent information from yourself.
  • amnblogamnblog Forumite
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    You would ordinarily need a squeaky clean credit file to get 95% lending. There is a Lender that is more flexible on credit issues with 5% deposit but you will pay a premium on the rate.

    You may get lucky, but I suspect you might be asked to put down 10%.

    As previously mentioned, the way to find out is to make the appointment with a broker.
    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
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    Was the £14k loan used for debt consolidation purposes?
    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
  • class2ldnclass2ldn Forumite
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    We got a mortgage for 233600 with halifax on 95% . No late payments but between me and my partner we have around 35k of debt. We jointly earn around 70k so there's definitely people out there lending. Our checks didn't seem to be too stringent either. Like I said we've had no late payments so how that would affect things I'm not sure.
  • Yes it was. It paid off a credit card and overdraft and brought my monthly payments down by £150 a month.

    Is it bad it was for debt consolidation rather that for example buying a car?

    The debt came from my separation and having to pay mortgage/rent at the same time and a deposit and a car etc but my loan is only £285 of my £2500 a month income and a £133,000 mortgage would be easily affordable
  • ThrugelmirThrugelmir Forumite
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    Yes it was. It paid off a credit card and overdraft and brought my monthly payments down by £150 a month.

    Is it bad it was for debt consolidation rather that for example buying a car?

    You credit history will reflect this. A fact that will taken into account when they process your application.
    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
  • I thought I was doing the right thing by consolidating credit card and overdraft into a loan.

    I've actually looked at my credit reports now and there are no late payments at all on there. Or defaults or anything.

    Do you think a broker will be able to place it or should I seek more long term rental accommodation (I'm currently in a short term rental whilst sale of house goes through)
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