Help advce for a mortgage pretty please?

bigmarti

Hi All, please could someone advise if at all possible.

I live with my wife in rented accommodation. We are looking to buy our first house.
I earn £40k per year and my wife £35K.

I have a poor credit score and was in difficulty a few years back where I defaulted on a couple of loans, which now I have rectified. I am still paying them but at an agreed sum each month. , I did renegotiate the size of the repayments at that point and have met every repayment since.

I do not have any other outstanding debt. I have not applied for anything in the last 3 and a half years.

My wife has excellent credit history and has no debt either.

We are looking to buy a property for £260K and have a £40k what do you think the chances of us getting a mortgage? Would we be best to go through a broker to find a mortgage provider.

Or am I not going to get a mortgage?

Thanks in advance for any advice. It's much appreciated.

csgohan4

so how much do you owe in debt since your still repaying them?


Either way you need a broker to match you to a lender

bigmarti

Thank you for your reply. It is around the £8k mark.

ACG

There should be lenders.

My job is not to judge, if I did I would be out of business but having £40k in the bank and £8k on a payment plan is not going to look great with underwriters.

Realistically it is not going to be high street lenders I would not have thought, although it will all depend on how everything appears on your credit reports. I would expect rates to be in the region of 4.2-6.5%....difficult to be more accurate at this stage.

You need to get your credit reports infront of a broker really.

AnotherJoe

bigmarti wrote: »

Thank you for your reply. It is around the £8k mark.

Why haven't you just paid it off if you've got £40k put by? Almost certainly whatever interest you are paying on that £8k is more than you are getting on an £8k portion of the £40k anyway.

It also doesn't look good to a lender if in effect you say "hey Ive got £40k and am being tardy about paying back an £8k I owe"

bigmarti

Fair enough, i do see your point. Thank you.

ACG

At this stage, I would say keep the money in your bank. Having a 15% deposit will probably be the point the point that makes getting a mortgage possible. Less than that and I think you will struggle.

Had you cleared the debts a year or so ago then I would say high street rates with a 10% deposit could have been achievable but you are where you are so best to make the best of where you are.

Thrugelmir

Clear your debts. At least that gives you a fresh start the day after. Your continued poor credit score is a reflection of the course of action you have taken.

While it may have seemed clever to negotiate repayments of your debts. At some point in your life you may find it comes back to bite you on the bum. Like elephants, finance houses have long memories.