Chance of getting a mortgage with less than perfect credit?

Newfinances

Hi everyone. Looking for some mortgage advice this morning.

I'm 30 years old and will be a first time buyer. I have rented with my girlfriend for the past 4 years. She is 23 and won't be going on the mortgage due to her past issues with student credit. Her credit file is basically shot to pieces and she is currently in a debt management programme. She also is a student therefore doesn't work.

My credit score isn't great. It's 5 points away from 'fair' on ClearScore. I'm pretty sure over the next few months I can try and build that by paying off debts.

Anyway, a new build housing development has opened near us. The house we are interested in is £102,000, very cheap for a new build 3 bedroomed house however we don't live in the best of areas and these homes are renowned for being small starter homes, this is cool with me - I just don't want to rent anymore due to the issues we have had.

I have been in my job for 2 years now and work part time earning £16,500 a year. I also have a deposit of £62,000 for the house from my savings and I'm aware the government offers you 20% if you're a first time buyer purchasing a new build home. This means I would have to borrow approx £20,000 for a mortgage.

Doing the math quickly (Correct me if I'm wrong) £102,000 - £62,000 is £40,000 then I would get a £20,000 loan from the government via help to buy.

Am I likely to be offered a mortgage with regards to my circumstances? (Low part time wage, poor credit score but big deposit) or should I try and build my score a little more before going all in for a mortgage?

Thanks.

[Deleted User]

Newfinances wrote: »

My credit score isn't great. It's 5 points away from 'fair' on ClearScore. I'm pretty sure over the next few months I can try and build that by paying off debts.
more before going all in for a mortgage?

It doesn't matter what your score is. It's a made up number that has no relevance to borrowing.

What do your files show? Do you also have a patchy history? Or is it more solid?

Newfinances

Hi there.

My credit file is pretty solid for the most part however this year it has taken a hit due to financial difficulties and me taking loans out. I have 2 defaults on there from the last year but most of my accounts are up to date or closed

[Deleted User]

With both If you having poor histories, part time employment and low incomes, you're going to struggle, even with only needing a small mortgage

You'll need a decent broker skilled in adverse credit, but this looks like a non starter.

Are the defaults at least satisfied?

foxy-stoat

Doing the math - I do not think you need a £20,000 loan for the government with that amount of savings.

Also where can you buy a brand new 3 bed property for £102,000, just interested.

ACG

The government does not offer you 20% of a new builds, it is a loan and does need paying back.

With the size of your deposit, there will be options. With 2 defaults in the last 12-18 months, you may find your options are limited to non high street lenders but the devil is in the detail. Have you spoken to a broker?

Teamocil

She doesn't work and you earn £16,500 a year? Won't even a small mortgage be unaffordable when combined with bills?

enthusiasticsaver

Why on earth do you have defaults and debt with that amount of savings?

kingstreet

The minimum mortgage on HTB Equity Loan is 25% of the purchase price.

Ask the builder to ask their broker to go over your options.

parkrunner

According to your other thread you are penniless so you won't be getting a mortgage.