New housing mortgage question

petermortgages

Hi, me and my partner are looking into a new build that will be ready early-mid 2019.

the company want us to go for a check with a certain company to enable us to put our name down for a house.

does anyone have any experience of this?

my credit score isnt the best at the minute but a default from an old o2 dispute (which they wont remove) expires in jan 19 so my score should be better after that.

my worry is we will get rejected at this early stage etc.

thanks

kingstreet

Builders want to release, reserve, exchange contracts all within a month then take six months, sometimes longer to complete.

You will need a full mortgage offer to enable you to do this so you will need the default taken into account.

If you want to wait until the default drops off, you won't be able to look at reserving until January.

I'd get a broker's opinion. Some issues may be so old and trivial they make little difference to your mortgage prospects anyway.

foxy-stoat

Also, you dont have a credit score - so try not to let that come into your thinking.

jennhg88

We used our own mortgage broker but still had to speak with the developer's mortgage guy so he was happy with affordability, once we had an AIP from our broker we had to send this to the developer's bloke so he could confirm we could reserve the plot. Was a bit of a faff but haven't had to deal with him since.

petermortgages

Hi jennhg88 - thank you for your advice etc.

would we still (in your opinion) be able to get a help to buy mortgage?

sal_III

petermortgages wrote: »

Hi jennhg88 - thank you for your advice etc.

would we still (in your opinion) be able to get a help to buy mortgage?

There isn't such thing as help to buy mortgage. There is help to buy equity loan and Lenders willing to mortgage properties with help to buy equity loans.

As long as you fulfil the criteria for the HTB equity loan, which include affordability, you will get it. The don't do income checks, just take what you put in the application ad face value and rely on the mortgage Lender to do the actual income checks.

Without details like LTV, income, other bad credit history no one can tell you what your chances are to get a mortgage.

With just this one default without any other "sins" in your credit file(s) you are likely fine.

kingstreet

There is an HTB Affordability Calculator which has to balance for the Equity Loan to be approved when the PIF & Reservation are submitted.

We do one and submit it at the same time.

jennhg88

petermortgages wrote: »

Hi jennhg88 - thank you for your advice etc.

would we still (in your opinion) be able to get a help to buy mortgage?

Can't help you there, never had to use HTB and we have no details of your income/cost of house/deposit etc.

As others have said look at the online calculators.

petermortgages

thanks - we have passed the initially affordability assessment so can put our name down for a house - just need to get a mortgage sorted - fingers crossed and thanks for all advice