Liklihood of a Mortgage

backontrack83

Good Morning

So we have adverse credit and I am under no illusion that we will most likely need a subprime lender (if we can use anywhere at all) but what is the likelihood of being accepted for a mortgage with the following details;

Joint Issues:
DMP - Now fully satisfied and cleared in January 2017 but has left defaults on our accounts (details below) was in the DMP for about 4 years in total.

Myself;
Natwest default balance of £631 originally defaulted in Jan 2017 and satisfied in November 2017.
Capital One - Default Balance of £1130, originally defaulted in August 2013 and satisfied in February 2017.
HSBC(1) - Default Balance of 1514, originally defaulted in Jan 2014 and satisfied in Jan 2017.
HSBC(2) - default balance showing as £0, originally defaulted in October 2014 and satisfied in October 2016.

Husband - These are all now paid and satisfied/settled.
Capital One - First defaulted approx 40 months ago
HSBC(1) - First defaulted about 27 months ago
Lowell - First defaulted about 32 months ago
HSBC(2) - First defaulted about 36 months ago
HSBC(3) - First defaulted about 36 months ago

Current Debt;
1 x 0% Interest Credit Card with a balance of £1160 will be cleared in 11 months
1 x 0% interest credit cards with a balance of £1600 will be cleared within 12 months
1 x HP paying at £26 a month with an outstanding time left of 18 months

We have overdrafts husbands is £500 and mine is £300 but we are not using them so in credit with our banks.
We have no other debt except that listed above.
We have no dependants
No missed payments since the last one Jan 2017 on any accounts including mobiles etc.

We earn jointly £54661.00 before tax. We are currently saving £1000 a month and will have a deposit of 5% on a 250000 house (£12500) by March 2019, we are currently saving £400 of that £1000 in a HELP TO BUY ISA (an account each). and the rest in a regular savings account. We live down South so unlikely to get a new build house within the 250000 bracket which we can utilise the help to buy ISA in purchasing.

We are not adverse to using the HELP TO BUY SCHEMES Shared Ownership or the Equity Loan, but would prefer a standard mortgage if possible.

We are looking to start the ball rolling between December 2018 and April 2019 so we don't have to sign another years contract for our rented property which will run out in May 2019.

So any brokers out there who can advise I would really appreciate it.

i understand the more we can save and have a bigger deposit the better but are we likely to get any help with a 5% despot on a standard mortgage with that credit history?

Thank You :j

YHM

You need to speak to a specialist broker about your case in more detail, but looking on the face of it, you will struggle to find a lender that will provide a 95% mortgage based on the above.

Specialist lenders generally require a deposit of 15% (some at 10%) but they can be awkward to deal with.

The HTB option may work as this effectively is based on a 75% mortgage. But either way find a good broker that can support you.

backontrack83

Thank you, is there any hope for nay kind of mortgage?

YHM

Yes absolutely, you just need to be conscious it most probably wont be a high street lender due to the DMP. As I say find a good broker and they will support you.

backontrack83

Wonderful thank you ever so much.

When is a good time to approach a broker? When we have the deposit sitting in the savings? A month before that? Unsure how long these things take

FTBNow

I imagine if you were to talk to an independent broker now and explain your situation: DMP, defaults, looking at 95%, they could give you some free advice. At least then if you have to save a larger deposit you can do so without it coming as a surprise when you have a 5% deposit.

I imagine you'd probably be looking at 15-25%.