FTB and absolutely PETRIFIED

letitbe90

Mortgage wise you should be fine on the affordability side, at worst they could ask you to take a longer term than 25 years (but you could always change that in the future). Imo even paying extra as a result (and you will on 95% LTV anyway) is worth it compared to paying rent.

The missed payment was 4 years ago so hopefully it doesn’t affect the 95% LTV, I’m pretty sure you’ll have no issue with the 90% LTV but some lenders can be picky about them for 95%.

Use a broker rather than approaching banks.

GoingOn30

A 95% LTV mortgage is more risky, if living with parents for longer is an option, how long would it take to save to closer to a 10% deposit?
This would also give you q chance to get more of your debts paid down and make you much less exposed financially.
It's not like the market is shooting up at the moment so no harm in waiting 6-12 months.

datlex

AnotherJoe wrote: »

Excellent point. If your mortgage is say £100k you can see you owe £100k. If you didn't have a Mortgage no one would be telling you "you owe rent for the rest if your life which is approximately £500k" but that's the situation.
Edit : I changed ACGs 25 year figure above to 50+ because you pay your mortgage for a fixed period but you'd be paying rent forever. So if like most people your mortgage will be lower than your rent don't forget it's not just cheaper for the period of the mortgage, rent carries on after the mortgage ends.

Also rents often go up each year. Mortgages on the other hand can be fixed for years at a time. For FTB I believe up to 5 years. For re mortgaging 10 years (depending on LTV).

ACG

scaredycat94 wrote: »

Thank you for your reply.

I'm currently not paying any rent, living with parents so I pay some board and thats about it - I've struck renting off my list as a possibility just simply because I don't like the thought of it.

I guess my fear exists around the mortgage application, not really the thought of having that debt over my head. I'm terrified I'd get turned down the moment I apply. I don't really know if I'm in a good position or a bad position.

Another issue, I'm really just scared of sitting down in front of a mortgage adviser and saying - this is my financial situation - as like I said before, I don't know if its good or bad.

We are like doctors... We have seen it all.
We have seen people who think they are all but guaranteed a mortgage as the 15 defaults they have are not important. We have also seen people who have 1 late payment 5 years ago and a 40% deposit who think they are the worst applicant in the world.

Most people fall somewhere in the middle.

Get your credit report(s) and give a broker a call, they will/should just have a brief chat about your situation to see if it sounds feasible. Then you can decide what to do from there.

scaredycat94

ACG wrote: »

We are like doctors... We have seen it all.
We have seen people who think they are all but guaranteed a mortgage as the 15 defaults they have are not important. We have also seen people who have 1 late payment 5 years ago and a 40% deposit who think they are the worst applicant in the world.

Most people fall somewhere in the middle.

Get your credit report(s) and give a broker a call, they will/should just have a brief chat about your situation to see if it sounds feasible. Then you can decide what to do from there.

From your view point, what would your advice be on my existing debt? I've read some forums where people have advised to go in with little to no debt. I then hear some forums saying that lenders like to see some debt as it demonstrates control and responsibility - and I've even heard some say that lenders would turn down someone in my situation if I had zero balances on multiple credit cards as it means once my mortgage has gone through I could easily land myself in unmanageable debt with the credit I have available.


I appreciate there's no black and white answer perhaps, but thoughts and opinions would be great to hear.

amnblog

Please note that borrowers who don’t get ‘yes’s’ will normally not get ‘no’s’.

They get:

Not with us or Not at that level of lending or Not on that property

A Broker will do the worrying so you don’t have to. A Broker will give you the maximum chance of putting a case to a lender in a form that allow them to say yes.