Do I stand a chance of getting a mortgage now?

LLE2019

So I am considering applying for a mortgage but don't want to put myself through the process if my chances of approval are not good. I am currently renting and my tenancy is due to end in 2 months, I really don't want to renew as I am not happy living here, my parents have said i can stay with them for a while if needed.

I am a single mum of 2. I work part time earning £26,000. I have found a property i like which is on the market for £100,000. I do have £15,000 saved. Here is the problem, I had a default for £400 23 months ago on a current account (It was during the period of splitting with my husband and I have also missed payments on a utility bill from the same period) All are now settled (Only a few months ago). I have no other debts or credit issues since.

My question is will the default and missed payments make getting a mortgage impossible. I did have a brief conversation with London and County, but to be honest he wasn't very helpful, just told me it is risky.

Any advice would be much appreciated

MovingForwards

Do you pay child care? If so how much as that may have an impact.

Your reasons for your credit history blip are understandable.

See a decent, independent, whole of market broker and I'm sure they can sort you out.

The brokers will be along at some point to let you know and possibly ask other questions

LLE2019

Thank you for your response. No i don't pay childcare, my eldest goes to school and my youngest I look after her half the week and her father the other half, hence me only working part time

amnblog

The default is not a barrier to lending.

The affordability could be tricky, especially if there are loans or credit card debt.

If your ex contributes maintenance, that could help.

Speak to a sensible mortgage broker.

LLE2019

Thanks, maybe i need to be looking at a lower value property, I have seen a couple around the £85k price, not sure if that would be more affordable in the eyes of a lender.

I don't have any debts or outstanding credit card debt.

My ex doesn't pay maintenance as such but does support her in buying clothes, paying for anything she might need etc.

LLE2019

Does anybody know realistically what kind of property price i should be looking at? It is all so confusing!! Earning 26k, no debts, 2 children but no childcare costs. 15k deposit?

stu2500

LLE2019 wrote: »

Does anybody know realistically what kind of property price i should be looking at? It is all so confusing!! Earning 26k, no debts, 2 children but no childcare costs. 15k deposit?

I always thought this calculator was helpful when I was thinking about affordability for my mortgage

https://rbsintermediaries.hdddirectsolutions.co.uk/Natwest

Only use as a rough guide, but it is a good insight into lending limits. As above, try and find a broker that comes recommended who can help you

MovingForwards

LLE2019 wrote: »

Does anybody know realistically what kind of property price i should be looking at? It is all so confusing!! Earning 26k, no debts, 2 children but no childcare costs. 15k deposit?

Just done a quick check on Halifax's website and its a bit over £110k, assuming you have no outgoings aside from the usual food, clothes, utility bills etc.

Find a good whole of market broker, have a chat and see what they say