Help to buy equity loan mortgage with old defaults?

skybluechic

I am wondering if anyone could advise the likelihood of us being able to get a help to buy mortgage with some old defaults my partner has?

He has 2 defaults due to drop off his file in July and September next year. Both are on his noddle file but weirdly none are on his equifax file. We are just waiting for his experian report to come through to see if they are on there.

We are looking to purchase a house for £365,000 so with the 20% help to buy equity scheme we would need to borrow £274k.

My earnings are £47,000 basic salary with £3000 guaranteed overtime until at least 2018.I also receive a yearly performance bonus on average £3000, this year I got £4000.

My partner earns take home pay of approx £1400 per month which is made up of two payments of £671 basic pay and £700-£900 dividend pay. If this payment method is going to cause problems with getting the mortgage we can ask his company to change this if it helps or get a letter verifying his salary.

Affordability is not an issue as we are currently paying £1000 rent and saving over £1500 per month. I have 2 credit cards one I pay off in full each month and the 2nd with a balance of approx £800. My partner has one credit card paid in full each month.

The house we are interested in is due to be released Early next year and we just want to get things in order and see where we stand before it is released.

I have looked at Aldermore and wondered if they would consider us?

Any advice would be much appreciated.

skybluechic

I have now received my partners experian report and unfortunately the 2 defaults are on there. He has also now changed his salary back to PAYE with his yearly salary £18k which he received in October.

We have now seen another house we are interested in and wondered if we should try to get a mortgage decision in principal before we place a reservation. Is anyone able to advise of a good mortgage broker that could help us with this?

Thanks!

Thrugelmir

skybluechic wrote: »

We are looking to purchase a house for £365,000 so with the 20% help to buy equity scheme we would need to borrow £274k.

How do you intend repaying the 20% loan in the years to come?

skybluechic

Hi Thrugelmir, the house we have recently seen is approx £330k so the mortgage required is £247k. Our plan is to save as much as possible and then remortgage to buy the 20% share. I am quite fortunate to receive good pay increases every year so this should help with the remortgage.

Thrugelmir

Affordability is based on the total amount borrowed. This includes the equity loan. Lenders do not base decisions on speculation as to what the future holds. As simply too many variables.

skybluechic

We have just been to see the builder and are now really keen on a plot we have seen. The price is £339k so the mortgage needed would be £255k.

We would really like to go ahead with this but I am worried that we may not get the mortgage and therefore can't afford to lose the deposit until I know we are in with a good chance. Has anyone managed to get a help to buy equity loan mortgage with defaults or are there any help to buy lenders that check only equifax that may lend us the amount we need?

Mummyto4kids

We've just been approved subject to valuation with the halifax on Htb - we earn £70k between us the house is £260k so our mortgage is approx £195k I have a settled default from 5.5 years back. We paid £500 to reserve and they said we would get a part refund if we couldn't secure a mortgage

When the default turned up on experian the halifax checked all three credit agencies

libf

skybluechic wrote: »

We have just been to see the builder and are now really keen on a plot we have seen. The price is £339k so the mortgage needed would be £255k.

We would really like to go ahead with this but I am worried that we may not get the mortgage and therefore can't afford to lose the deposit until I know we are in with a good chance. Has anyone managed to get a help to buy equity loan mortgage with defaults or are there any help to buy lenders that check only equifax that may lend us the amount we need?

Get the feedback of a broker. Likely the builder will give you the name of one, probably require them to sign off on you anyway, and speaking to them doesn't commit you to using them (and they may not charge you if you do chose to continue with them).That will be a far more considered and valid opinion than anyone can give you on an internet forum.