Complicated first time buyer / right to acquire

Legacy_user

Hi everyone.
I am currently living in housing association house been here 5 years and started the right to acquire process. Upto the stage of awaiting a formal offer now. I'm assuming the price is going to be in the region of £70000 and off that I'll get a £9000 discount. I am hoping to apply for a mortgage in july by which time iĺ have £7000 cash plus the discount so a £16000 deposit.

my problems stand with a ccj for £1990 in july 2015 and 2 defaults on my score from dec 2012. today my experian score today is 858 and fair. added to that i am on a zero hour contract although my wage is £400 weekly + £300 per week tax credits and child benefit and I will have 12 consistent weekly pay slips. I have credit cards and catalogue that are all paid in full.

what i am worried about is applying for the mortgage and getting turned down which will damage my score further. should I just go for one of those higher interest bad credit mortgages or take my chances with the banks?

I can easily afford the repayments as they will be less than the rent i pay now. my deposit will be in the region of 20% and I'm getting a lot of house for a little money. will these go in my favour?

any help advice or experience would be greatly appreciated:money:.

Edi81

You need a broker. Do not do this on your own as you have a complex situation.

System

thanks i was thinking the same. do you think I have any chances through the broker? dont want to get my hopes up and be disappointed.

ACG

Why did you apply for the right to acquire without checking if you can get a Mortgage?

Right to buy/acquire, CCJs, defaults and needing to use tax credits is not an easy mix to overcome added to that, a zero hour contract.

In terms of lenders on the high street, you are going to struggle. I can only think of 1. Infact, I can only think of 2 lenders (3 fr next month) who might consider it.

I think you definitely need a broker, unless you either get lucky or put the hours in doing some research yourself.

Just to add, your credit score is not a real score. It is basically a random number.

System

I put the application in to see what price i get. it's no cost to me and if I don't get the mortgage i just go back to renting as i was before. I can earn £800 a week if I want and leave the tax credits however I would rather have a better work life balance than work double to effectively be £100 a week better off.
and 2 lenders that may consider me is better than none so thanks ��

csgohan4

OP you need to really read up on getting a mortgage and using the affordability calculators


Are you really ready to own a house?? Do you know how much a new boiler costs of a roof costs?? Repairs costs of the building are not cheap if you are leasehold.

Interest rates are low at present but may increase in the future, the lenders stress test your finances to >5%+ to see if you can afford the high interest in future. It is much more than 'it's cheaper than rent', it's the costs that comes with maintaining a house.

If you default you will end up homeless, whereas at present you have a secured tenancy. Just because you see the £££ does not mean it is a good idea

You need a broker to help you, as a zero hours contract and poor credit history does not look good

System

thanks for your condescending advice. I am a registered nurse so unless the NHS find 40,000 nurses in the next year to fill every vacancy then I am pretty much guaranteed as much work as i want. also i have between 25-32k a year. how much am i supposed to need for a 56k mortgage?

I was thinking along the lines that the house is pretty much the banks if i was to default. it's not a large investment for them for a 3 bed house with 2 gardens and off-road parking.

csgohan4

tessiesmummy wrote: »

thanks for your condescending advice. I am a registered nurse so unless the NHS find 40,000 nurses in the next year to fill every vacancy then I am pretty much guaranteed as much work as i want. also i have between 25-32k a year. how much am i supposed to need for a 56k mortgage?

I was thinking along the lines that the house is pretty much the banks if i was to default. it's not a large investment for them for a 3 bed house with 2 gardens and off-road parking.

None of the above was in your original post, we can only go on what you actually post, we cannot read your mind.


I do not apologise for giving you info you do not want to hear and applies in the real world.


Whether you are a nurse or not, you are on a ZERO hours contract. That is not seen a highly as a permanent contract. That together with your credit history makes a bigger risk than someone who does not have adverse history.


Look at yourself from a lender's point of view


I still stand by my post as buying transcends 'it's cheaper than rent'. So how much a new boiler by the way? Do you know if your property is leasehold and the historical repair bills???


https://www.moneysavingexpert.com/mortgages/mortgage-guide

Thrugelmir

tessiesmummy wrote: »

I was thinking along the lines that the house is pretty much the banks if i was to default. it's not a large investment for them for a 3 bed house with 2 gardens and off-road parking.

Banks aren't interested in customers that are likely to default. Profit margins are too low. Debt recovery is a time consuming loss making operation. That's why lenders vet people and profile them. Setting interest rates accordingly. As different lenders have different target markets.

That's without all the regulatory responsibility placed on lenders to have a duty of care towards their customers.

System

thanks for all the input. I'm finding this very stressful! affording the mortgage and upkeep will not be the issue in reality its just getting it down on paper thats the hard part!

all my defaults will be gone by December this year. and if I settle the ccj in full (im currently on a payment plan that I've never missed a payment) would my chances be any better then?

come September ill also be in a position to go back to a permanent position once youngest child is in school.

so what I am asking is if I try my luck now at getting a mortgage (seeing as ive started the process and got the deposit saved) and get refused would that damage my chances for me to try again this time next year?

thanks

ACG

You may need to declare that you have had a declined application and you would have had a credit check carried out, so it could affect future applications but it is not going to be the reason as to why a future application gets declined in itself.