New build mortgage, some adverse credit

StartingOut

We are looking at buying a new build. The LTV would be 83%.

We'd be borrowing 2.6% of my income of £120k.

We have some adverse credit from 2010-13. We currently have one joint default that is due to come off our credit history next month. And another that is mine, that is due to come off next March. Both are satisfied.

We had an arrangement to pay marker on one account until early 2014 which is now green/OK on our credit reports. Everything since then has been paid on time and we've had very little credit as we haven't applied for anything.

My husband has a credit card with about £1100 outstanding and we have a loan for £5000 (which I haven't spent, it was to help with moving costs etc but the plan is that this will be paid back at completion).

I've approached a broker and she's given me two possibilities - one where we need 80% LTV which is an extra £10,000 but we just can't find that in the next two months with all the other moving costs. Or an adverse credit one that will be an extra £400 a month on the mortgage (1.39% vs 3.19%).

The plan would be to remortgage at the end of the 2 year fixed rate as we'd be under 80% LTV and all adverse credit will have dropped off our credit reports so we should be able to get a better mortgage rate.

I just wanted some advice on whether this sounds right and if we need to accept that we have to go with an adverse credit lender or if we should look elsewhere.

ACG

Im pretty sure I know the lender who will do 80% LTV as it was my first thought - however their cap on new builds is 80% LTV, if it were not a new build I suspect you could get 85%. Failing that I think you would probably be looking at an adverse lender and 3.19% is probably about right.

Obviously we only have limited information but it sounds about right.

StartingOut

Thanks ACG - that's helpful. This move has just come about a bit quicker than we thought it would - so was hoping all the defaults would have dropped off before having to apply.