mortgage wanna be!

obay

Hi,

Quick question, I'm about to set sail on trying to buy my first house with my new wife (we married on the 23rd July)

I run my own company, and have done for 3 years, we have the SOC13 (I think that's the form that we're suppose to be using? I can't remember the name)

My wife also works for me and takes the basic salary (£671/month) as I thought this would be a good idea for the mortgage.

It's clean and debt free, just like I am, I wouldn't say I'd have the worst credit rating, but I also wouldn't say I'd have the best, I've had a default which is coming up to it's 5th year now (ends next year December).

I've only just started getting credit again, about a year ago, I took out a new phone contract, plus this week I have finance DFS sofa's as well just to build up something.

In April I took out an Apple iPad which I paid off within 3 months as I didn't see the need to pay £19.50/month when I could've just brought it from the shop anyways...

Right now, I have £2,350 shoved into a savings account and slowly building, not only is this teaching me and my wife not to touch it, but it's also giving me the chance to have an 'emergency fund' as per say.

I'd like to propose the question of, my default is coming up to 5 years old, I'm starting to get credit now, what banks would score me to allow me to have a mortgage?

I'm aiming for a total of 20k in savings by the end of the year (as I only just started the savings account last month).

G_M

Speak to an independant mortgage broker.

MonsieurFrugal

You need forms SA032.

I just went to my local tax office and they printed them off there and then for me.

Also i wouldn't bother getting things on credit, unless it's 0% interest.

Just get a credit card and set up a direct debit to pay it off in full every month - this shows you can manage credit

Gee175

I am in the same situation!!

obay

MonsieurFrugal wrote: »

You need forms SA032.

I just went to my local tax office and they printed them off there and then for me.

Also i wouldn't bother getting things on credit, unless it's 0% interest.

Just get a credit card and set up a direct debit to pay it off in full every month - this shows you can manage credit

Really?

I don't really want a credit card so I won't get one preferability.
as said, the payments for the phone contracts are showing a good effect on my credit file; so thats why I thought about getting the sofa's on it.

I will speak to a broker, see what they can do, but would it be 'ok' to take on a person with default?

System

If you're paying interest on your credit items then it's costing you extra money you could otherwise be saving. If you get a credit card and pay it off in full every month (so use it just for your ordinary spending and leave the money you'd usually be using untouched in your account to pay it off) then you pay no interest. Seems like a no-brainer to me!

If you're not sure you have the self-control to leave the money untouched then fair enough, avoiding one is sensible. Either way, it seems silly to get items on credit and pay interest, if you can afford to buy them outright. I would imagine the impact such items would have when it comes to assessing your eligibility for a mortgage would be negligible, although I have no idea if that's the case or not.

As far as speaking to a broker, their job is to help people who might struggle to get a mortgage, whether that be because they're self-employed, a FTB, have some bad credit history etc. so it would be fine for a broker to take on a person with a default.