FTB - What are our chances?

Squipper592

Hello, just looking for some advice. Hopefully someone will be able to settle my mind a little with this.

I am in the RAF and I'm looking to buy a house with my wife in the area I am currently based. We are both originally from the next town over and we have a strong support network for childcare for our son for when she goes back to work. I am more than likely next for posting to another unit as I am longest in post for my rank and specialisation. When that will be is anyones guess.

I earn £22.5k currently which will rise to 29k in the next 4 years (£23400 from Feb + whatever % increase they give us in April, most likely 1% so not much), she earns £12.5k and is currently on maternity leave on full pay although this will drop in the last 3 months so Jul-Sep, I haven't claimed my commitment bonus yet and will do so to cover the shortfall at this time regardless of if we have a mortgage or not, bonus is £2750. I have proof of my entitlement to claim this bonus. We each have a save to buy ISA with 2k each.

We are looking to buy a 'forever' home and have spotted a new build one from a highly respected builder at £183k which we could use Help to Buy (Scotland) equity loan of 15% and I can take out the Forces help to buy loan of £7.5k interest free for 10 years to top our savings up cover the 5% deposit + cover all fee's.

Now heres the kicker, I have 2 defaults to my name, both incurred when my enlistment date got pushed back 6 months last minute (as in already left job to leave the next week last minute). One for 1.8k, the other for nearly 10k. Both from the start of 2013 and both repaid in full. I also have a loan from the Police Credit Union with 6.6k left to pay which I do so at £200 p/m.

TL;DR Looking to use Forces help to buy + Help to Buy EL (Scotland) to buy a family home for 183k 10/12k deposit from us 27.5k from govt 80% or slightly under LTV. Wife's credit record is squeaky clean, mine has 12k of satisfied defaults registered early 2013, no other issues.

Am I in dreamland or is this possible?

YHM

I think it would be achievable.

The size of the defaults would be a concern to a lender, but they are satisfied now and relatively distant.

I would instruct a good broker that could find a suitable lender for you.

Squipper592

Thanks for your reply YHM, that's encouraging to hear. We are speaking to 2 brokers, one from London and Country and another that the builders have experience with. Both are quite slow getting back with reply's, both know our financial situation. We have submitted our payslips + credit reports to both and that was a few days ago. I guess it must be normal for them to take a bit of time to go over the reports and check back, its just mildly nerve racking all the same!

Because I'm using the forces help to buy I need an AIP before I can apply for it and need the F-HTB accepted before I can put a deposit down on the plot. It wasn't until we started to look at properties that we realised how much we don't want to be in married quarters anymore.

YHM

Hmmm sounds like you need an answer from them sooner rather than later. Maybe they are going slowly because you have spoke to two brokers at the same time? I wouldn't put my full efforts into a case or give it my full attention if you were considering another broker as well...

Squipper592

I heard back from the local broker tonight who seems quite optimistic that he will be able to arrange something for us. He said he needs a couple days to look into it and try and find the best deal for us. Will not be doing anything with L&C going forward from this point.

Fingers crossed!

Squipper592

I might be being a bit impatient but its now been over a week and I've not heard a peep off the broker, I've e-mailed a couple of times asking for an update and left a few voice mails but nothing back.

Should I wait this out or start looking for yet another broker? Starting to feel like this may be a lost cause...

Squipper592

Heard back from him immediately after posting... Should know by tomorrow if this is going ahead or not. Hopefully all goes well.