Forces HTB, CCJ and Mortgage application

cmc23

Hi everyone, I apologise in advance for the length of the post but there's so much to this and I feel I can't get the info I need anywhere!!

My partner is in the Armed Forces, and so will be able to go for Forces Help To Buy, where he will be given an interest free loan of half his salary to towards the deposit. As far as I can gather (and please correct me if I'm wrong!) the governemtn would also contribute as with the normal HTB scheme, meaning we would require a deposit of 75%? So for his salary of £18k, this would mean potentially a deposit of up to £45k.

However, his credit rating is shocking. He had numerous defaulted accounts, and a CCJ of £1,800 which was awarded in August 2013. All accounts were settled and CCJ satisfied in August 2014. Asides from this, his monthly outgoings are only (officially anyway) £93 per month.

My credit rating on the other hand is pretty good as I've worked very hard on building up a strong credit history. However, to help m partner out, I have responsibility for many of his outgoings despite him paying for these, so my official outgoings are £385, with credit cards totalling £5,660 (all on 0% interest and will be cleared before interest accrues). At the moment, my salary is only £10,745 as I am part-time while finishing uni, with an increase to around £17,750 when I go full-time in April.

We are really looking to buy in around May/June 2016, as I currently am in Glasgow and he will be posted in Devon - looking to start our lives together properly and begin a family ASAP really.

I completely understand for any specific advice we need to see a mortgage broker (have already been waiting over 2 weeks for Forces Financial to bother returning our third enquiry for information!), but I would like an indication of whether we stand any kind of chance, or what we could do to improve our likelihood.

stephenni1971

I'm a Forces Specialist so may be in a position to give some generic information

1. His salary @ £18k would show he's not long in.... depending on which service he is in he could need two years from enlistment to be eligible for FHTB.

2. FHTB can be used with HTB Equity Loan Scheme on NEW BUILD houses... I don't know where you get a deposit of £45k from.. it would be your deposit 5% HTB EL 20% and mortgage 75%

3. If you are in Glasgow and looking to move to Devon lenders may not allow your salary to be used as on purchase you would have to change jobs

4. You taking credit in partners name would make me as an adviser very uncomfortable...

5. Your CC debt is over 50% of your income...

6. The default will cause a problem with some lenders

I think this will be a difficult one to place

ACG

I was going to say Stephenni was probably the best person to speak to about this. I give him a shout when I have complicated forces cases.

cmc23

stephenni1971 wrote: »

I'm a Forces Specialist so may be in a position to give some generic information

1. His salary @ £18k would show he's not long in.... depending on which service he is in he could need two years from enlistment to be eligible for FHTB.

2. FHTB can be used with HTB Equity Loan Scheme on NEW BUILD houses... I don't know where you get a deposit of £45k from.. it would be your deposit 5% HTB EL 20% and mortgage 75%

3. If you are in Glasgow and looking to move to Devon lenders may not allow your salary to be used as on purchase you would have to change jobs

4. You taking credit in partners name would make me as an adviser very uncomfortable...

5. Your CC debt is over 50% of your income...

6. The default will cause a problem with some lenders

I think this will be a difficult one to place

Firstly thank you so much for your reply! I just wondered if any of this would make any difference to the situation:

1. He'll be gained strength in the RN as of January which we'd been led to believe made him eligible (again though, we're struggling to get any real advice on our situation). He doesn't think he'll have an rise in pay at that point though.

2. In all honesty, my brain is so mushed with trying to see what options we have, I have no idea where £45k came from either! Would it be based on the mortgage we're able to borrow (if we are able) rather than using the £9k as representing 5%?

3. Currently I work for a global bank, and am also trying to secure a transfer to a branch in the area when we do move down - if that were the case would my income be OK, would I need proof of the transfer to a Devon branch before applying?

4. I totally understand, currently t's car finance (the only one I have, my own car is owned outright) and phone contract as it offered the best deal due to me being an existing customer with the provider. Would that be a total bar?

5. Again, if we were to focus on clearing these before applying, or significantly reducing, I assume that would be helpful?

Sorry for all the further questions, I'm just keen to start making plans etc!

stephenni1971

cmc23 wrote: »

Firstly thank you so much for your reply! I just wondered if any of this would make any difference to the situation:

1. He'll be gained strength in the RN as of January which we'd been led to believe made him eligible (again though, we're struggling to get any real advice on our situation). He doesn't think he'll have an rise in pay at that point though.

2. In all honesty, my brain is so mushed with trying to see what options we have, I have no idea where £45k came from either! Would it be based on the mortgage we're able to borrow (if we are able) rather than using the £9k as representing 5%?

3. Currently I work for a global bank, and am also trying to secure a transfer to a branch in the area when we do move down - if that were the case would my income be OK, would I need proof of the transfer to a Devon branch before applying?

4. I totally understand, currently t's car finance (the only one I have, my own car is owned outright) and phone contract as it offered the best deal due to me being an existing customer with the provider. Would that be a total bar?

5. Again, if we were to focus on clearing these before applying, or significantly reducing, I assume that would be helpful?

Sorry for all the further questions, I'm just keen to start making plans etc!

Even with clean credit your current income isn't going to go far buying down there. What would your expected salary be if you can transf and go full time?

Having less outgoings will always help so paying down current debts may be worth doing...

cmc23

stephenni1971 wrote: »

Even with clean credit your current income isn't going to go far buying down there. What would your expected salary be if you can transf and go full time?

Having less outgoings will always help so paying down current debts may be worth doing...

If I'm able to go full time in the same role, it would be £17,750 gross. I am definitely finding that myself when I've been looking to see what the prices are like. Just causing so much additional stress.

Chocolatefund

From my knowledge (being in the forces) Navy can apply for the Forces Help to Buy as soon as they finish training I believe. Army and RAF have to wait two years.