Can i get a mortgage

David_Readings

Hi i wonder if anyone can help.

Me and girlfriend looking at H2B, house is 285k we have 95k deposit plus the H2B loan and it is due to complete building spring next year.

Girlfriend earns 24k has perfect credit and has just sold house, no debts except 100/month student loan.

I earn 35k and have no debts, but some bad history including:-

Default talktalk from this month but has been paid (moved house etc.)
Late payment on unsecured loan last september - less than £100
8 months arrears on mortgage due to illness from 2017, sold house and paid off mortgage in full january 2018.

Do i have any chance?

Thanks

David_Readings

Can anyone help?

ACG

You need a broker.

You have a few different issues there spread out over 3 years, 5% saved deposit, combined with HTB you are probably going to find your options very limited.

David_Readings

Thanks for the reply, we will get a broker

We actually have 95k for the deposit though

ACG

Sorry, you are right, I missed the £95k I just seen HTB and assumed 5%.

I think you stand a better chance without HTB to be honest.

grumiofoundation

With a deposit of 33% do you need to use the HTB loan?

grumiofoundation

ACG wrote: »

Sorry, you are right, I missed the £95k I just seen HTB and assumed 5%.

I think you stand a better chance without HTB to be honest.

Oops snap....

David_Readings

I have assumed it was easier to get a smaller mortgage with my credit issues, is that not necessarily the case?

The H2B loan seems like an offer too good to refuse being interest free?

ACG

Interest free, but if the house doubles in value so does the loan.
You are also paying a premium for it being a new build - not that I have anything against new builds BTW.

We have access to over 80 lenders, only maybe a quarter or that offer HTB, some of those are regional building societies who only lend in certain areas and very few of those remaining will accept Mortgage arrears and a default last month. So instead of having 80, you have probably less than a handful who may accept everything.

[Deleted User]

Based on the limitted information I think you would be able to get a mortgage.
The mortgage arrears are the most serious of all of these but it is long enough ago that you should be fine with those albeit with a slightly higher interest rate.
The default from this month might cause you an issue as very recent. There are companies that ignore defaults from telecommunications companies but you might need to wait until its past 3 months before applying

The help to buy thing is good being interest free but in the grand scheme of things what purposes does it serve you? Your interest rate wont be any better as you already have a big deposit. You are just going to give away 20% of any property value growth when you repay it. And it will limit your lenders when you are already limited due to credit profile

David_Readings

Thanks, we are going to look at the site today. The plots we are considering aren't on sale yet so i guess we will have a few months before we need to apply for a mortgage.

Will we need a DIP though and do you think that is possible?