First Time Buyer/Poor credit history

mcdelarich

I am currently wanting to buy the house me and my partner are living in, as the landlord wants to sell up. My credit rating is very poor and my basic salary is fairly low and the majority of my wages are made up of commission and bonus. I know a lot of lenders will only take a certain percentage of this into account. What is the best way to get a mortgage as a first time buyer, or to go self cert. and isn't gonna cost the earth every month to pay back. As i am only in my 20's i don't really mind if there is a long term to the mortgage as i would look to re-mortgage after the minimum term anyway.

Please Help???

Thanks
Rich

dmg24

What is your income, and how much would you like to borrow?

herbiesjp

and what is the purchase price?

Why is your credit rating very poor? Have you got an up to date copy of your credit file?

mcdelarich

my credit rating is poor due to missing payments on credit cards and mobile phone contracts. All of which are now upto date apart from one phone contract. My basic is 13500, but i've made 17000 since april, so including christmas bonus etc, i shoul be on track for 30K this year. The purchase price is 120000, and i think i can just about scrape together a 10% deposit (12000).

sarkin

It may be possible to get a 90% mortgage on this but I think you may find the payments a stretch even if you have an interest only mortgae. Will there be anyone else on the mortgage.

herbiesjp

Whether or not you can get prime "standard" rates will depend on the frequency and severity of the missed payments.

There are some lenders that will take your whole income into account, but you need to see if those lenders will also offer you standard rates.

On a £30k income you are looking at 4 times your income. If you look at lenders that will only take 50% of the extra income, so having a total income of around £22k, you would be looking at 5 times your income.

What you need to do is get actual figures, to see how the actual mortgage repayments would affect you in the pocket and therefore if it is sustainable

mcdelarich

I have looked at suppliers like bristol and west who seem to have a fairly high acceptance rate and offer 4.5x my income and the rate seems to be affordable. If I went self cert and had a deposit, would that be a better option, or would my credit file affect that. I'm waiting for my PIN from credit expert to find out my exact score, but i'm not too hopeful

MortgageMamma

dont go to bristol and west if you have had missed payments they will decline you. as will nationwide. Your best course of action is to let a whole of market mortgage broker look at this for you. if you have a track record of commission and can prove on wage slips self cert should not be necessary.