Is there a mortgage out there?

scrivolenski

Hi,
About 6 years ago we hit some trouble and I have 5 defaults all just over 5 years old. On top of this I stupidly took out a payday loan about 19 months ago not realising the effect this could have on a potential mortgage app.


However everything has been paid off for 2 years+ and we have found a great house (unfortunately where we live is quite expensive) but I think it is a "challenge" for our financial advisor to say the least. We are looking for a £400k mortgage on a £450k house so close to 90%. My credit rating is just on poor with Equifax (very close to fair) while my partners is fine. In terms of earnings multiples we are about 4x but I am just about to start a new job with a £15k increase so that should help significantly.


Is there anyone who would lend to us against these criteria? We have been with Nationwide bank for about 3 years and are currently renting.


The house is our dream "forever" home so I don't want to leave any stone unturned. I accept we will pay higher interest rates for a couple of years.


Any help or advice would be much appreciated. I am concerned that we may need to wait until the defaults drop off in about 11 months time and when it has been 2 years+ since a payday loan.

ACG

Is the new job in the same company or a new company? If it is a new company you are making it a lot harder.

In the main it sounds like it can be done, but its probably not the easiest.

scrivolenski

ACG wrote: »

Is the new job in the same company or a new company? If it is a new company you are making it a lot harder.

In the main it sounds like it can be done, but its probably not the easiest.

It is a new company I'm afraid. We never like to make things easy......!

scrivolenski

scrivolenski wrote: »

It is a new company I'm afraid. We never like to make things easy......!

However I'm not starting for about 2 months which I guess could mean if there was a suitable lender we could get the application submitted before then?

hounsehunterftb

IT would also mean you will have to inform the lender about your new job too. Lenders normally look for minimum six months during the lending process.

Mortgage broker would be your way forward. I am sure they would make it possible.

ACG

scrivolenski wrote: »

However I'm not starting for about 2 months which I guess could mean if there was a suitable lender we could get the application submitted before then?

If the lender asks about any pending changes to your circumstances you would need to declare it. I think most would.

I would not rule out getting a Mortgage, but it is not surprising your broker is struggling.

scrivolenski

ACG wrote: »

If the lender asks about any pending changes to your circumstances you would need to declare it. I think most would.

I would not rule out getting a Mortgage, but it is not surprising your broker is struggling.

Thanks ACG. What can we do to make it easier as potentially we might be able to hang off on the move without losing the house for a few months?


For example if we applied after my salary increase and post the 3 months probationary period. Or wait till October when it would be 2 years+ on the payday loan?


Or both I guess? Just trying to get an idea of what the most difficult issue is.

ACG

The payday loan is not really a problem in the main.
The defaults are also fairly minor in the grand scheme of things - subject to the finer details.
For me it is the job. If you were to remain in the job I would be pretty confident it can be placed. Holding fire until through probationary may help.

It really does all come down to the details, it is the little things that matter. I would see what your broker comes back with, they will probably need to make a lot of calls.