First Time Mortgage

sarahjvalentino

Hello,

I'm looking for some advice before i take it any further with a mortgage adviser. I'm 31 and single with 1 dependent but work full time on a high salary. My basic wage is 27k and commission averages between £1-2k per month. My current outgoings for rent,bills, childcare and car is approx £1600 a month.

I am very lucky that my step dad and mum can help with a deposit for a property (50/60k and a 2 bed property is approx 240k)

MortgageMamma

Its impossible to say whether you could actually get a mortgage or not without knowing the following details

Type of default (card, loan, utilities, telecommunications etc)
Amount of default (individually not all 10)
Date the default was issued
Current balance outstanding and if particular ones have been satisfied

Some types of defaults can be ignored by certain lenders - telecoms for example

Some lenders have policies where they ignore defaults that are quite old (say 36 months old for example)

Some lenders will not tolerate defaults at all.

If you've made mistakes with your finances in the past (we all do, I'm not judging) then it would be advisable to start paying these off before you become a homeowner, with all the responsibility that entails. From what you have posted about your disposable income, you could delay buying for a year and get these debts paid off.

If you decide to proceed and get a mortgage now anyhow, you are looking at rates between 6-10% (off the top of my head based on what I've seen lately).

If you got the debt paid off the rates could halve or even more.

If you don't want to admit to your parents about the debt, how about telling them you are concerned about brexit (yes I know, that old chestnut) and that you just want to watch and wait for a year as you believe house prices will fall. I'm sure they'll understand that even the most hardened brexiteer accepts there could be a market correction.

Once you have cleared your debts you could borrow a bit more on your mortgage for your new kitchen or bathroom.

If you need anymore help let me know.

MM

Ps - use an EXPERIENCED whole of market mortgage broker/adviser for your mortgage. Trying to go this alone with an impaired credit history will be a big headache for you and you could lose money on application fees etc if you are declined.

sarahjvalentino

Thank you for your reply.

Based on your reply i think i will wait til the end of 2020 til i apply. The deposit would be coming from the sale of my step dads property in the UK (They live abroad and both retired) which i know quite take a long time to come through and also me finding the correct property in budget.

I have 10 defaults ranging from £300 -£500 for about 8 of them and a couple for approx £3 each. They are defaults approximately 2 years old.

I wanted to get some feedback at this stage based on my circumstances,, as in this day and age, particularly living in the South you just assume you wont get a mortgage so we don't even try!