Is getting a mortgage possible?

Jaglad111

Just wondering if anybody could shed a little light On whether a mortgage is possible or not, so here's the situation. My credit history is dodgy, my wifes is good and we have our heart set on getting our own home next year.

My income, £42000 basic, £15000 shift allowance, £15000 voluntary/contracted overtime - £72000 total

Wife, £24500 salary

Both employed for 5+ years

Total debts £ 0

My credit history (the dodgy bit)

8 status 6 markers from an old overdraft, played weekly from first 6 until cleared, dated 11/2013

1 late payment in 12 months, 4 in the last 3 years.

November 2016 to Jan 2017 8 x short term/payday loans, repaid in full and on time/early.

We came into some cash in Jan 2017 and used it to clear all debts, cut up the credit cards except one each which we use for petrol and clear each month.

We currently save £2800 a month and will have £48000 for a deposit come application time in April 2018. If required I am willing to sell my car and buy something to run around in adding £15000 to the pot.

We are now both late 30's and have moved about a lot (I'm ex military) and want to settle into our own 'forever' home. We currently rent for £600 per month.

Now the questions! Is a mortgage even possible with that many payday style loans sat on my file? Will the status 6 (delinquent account) cause major issues, even though its repayed, will be over 4 years old and i never faulted on our repayment plan? Is 12 months of clean history enough to satisfy lenders and if so are we looking at the bottom end of the sub prime spectrum. We intend to buy for approximately £250000 over 25 years.

All help/views/experiences and input would be massively appreciated whether it's what we would like to hear or not, it's about us being able to realistic in our expectations. Many thanks.

Thrugelmir

You'll get there. Even if it takes a little time so don't be disheartened by any kick backs. You've managed to clear your debts. Now stay on the straight and narrow. Time is the healer as far as credit history is concerned. Speak to a broker for advice. There'll be able to review your circumstances in detail and guide you through the lenders differing criteria.

Have you both opened Help to Buy ISA's?

Jaglad111

Thank you, we both have htb isa's and have been researching brokers for a while now. We wouldn't dare apply direct as having followed this forum for a good time it's easy to see that a good broker takes so much stress out of the application process 500-1000 Is money very well spent, let alone the interest savings on the right deal. We have downloaded all our credit files and corrected financial associations, details at the wrong address and a few other minor errors so fingers crossed. I'm not too scared of my status 6 which was settled in 2013, it's more the short term lending that worries me. Worst case scenario we have to sit tight for a while longer, I really hope not though.

Zeni

I'd echo thruhelmir and go and see a broker who will be able to give you the best advice for this situation. Looks like you'd be looking at a mortgage of around 200k which would just be over x2 your combined salary which would be good to as not a huge stretch.

Looks like you've got the ISA's covered which is great

Jaglad111

Thanks Zeni, would it be too soon to approach a broker for a review and consultation? I know they get incredibly busy and would hate to waste their time.

Thrugelmir

Jaglad111 wrote: »

Thank you, we both have htb isa's and have been researching brokers for a while now. We wouldn't dare apply direct as having followed this forum for a good time it's easy to see that a good broker takes so much stress out of the application process 500-1000 Is money very well spent, let alone the interest savings on the right deal. We have downloaded all our credit files and corrected financial associations, details at the wrong address and a few other minor errors so fingers crossed. I'm not too scared of my status 6 which was settled in 2013, it's more the short term lending that worries me. Worst case scenario we have to sit tight for a while longer, I really hope not though.

12 months is a good clear window. After years of poor history. A sudden windfall provides the opportunity to change the situation completely. What lenders require is evidence that you as individuals have changed. Obviously the larger the saved deposit the more doors that will open for you.

Zeni

Jaglad111 wrote: »

Thanks Zeni, would it be too soon to approach a broker for a review and consultation? I know they get incredibly busy and would hate to waste their time.

Well there's no harm in giving them a ring and asking at the very least or send an email?
I think everything that your doing is going to improve your situation when your ready to buy.

ThomasChaney

Hi there, you can speak to the broker for advice. When my friend was moving to his new house he was also hired a professional movers nyc suggested by his friend who provided him mortgage service and also explained him everything about it.