Second time buyer question

ampafc

Hello all, any advice with this would be appreciated.


We (my wife and I) currently live in a three bed semi in Aberdeen, worth around £165,000. We have approximately £70,000 in equity. We don't have any savings right now as we are paying down some debt (should be cleared by the end of the year) and have been a bit ill-disciplined regarding saving. We will soon be ready to save £800 - £1,200 per month.


We are hoping to move into a house perhaps one year from now, with prices around £200,000. We would hope to have £15-20,000 in savings on top of the £70,000 equity at that time. Our credit ratings are poor mainly due to some defaults and missed payments from 2.5+ years ago. We will have cleared any debts in full by the time we come to look at houses.


My question, therefore, is: would there be a lender out there willing to give us a mortgage? We are with the Clydesdale Bank for our mortgage just now. We have £84,000 left on the current mortgage, and would probably need to get a mortgage of around £100,000. Would it make a difference if we raised enough money to mean that the amount on the mortgage could stay the same as it is (£84,000)? I appreciate none of you have a crystal ball and don't know what the market will be like a year/2 years from now, but having read some of the threads, I do see that there are a lot of knowledgeable people here.


I am 30, my wife is 28. Our combined annual income is £63,000.


Thank you for reading and for any advice you can give.

kingstreet

ampafc wrote: »

Would it make a difference if we raised enough money to mean that the amount on the mortgage could stay the same as it is (£84,000)?

No. You are applying for a new mortgage, even if you apply to your existing lender, so current balance means nothing.

Once your adverse credit is at least three years old and the loan to value is under 75% you will have high street options and not have to resort to the likes of Clydesdale again.