looking for mortgage broker advise please

betweenrockandhardplace

hello



im just wanting rough advise on my situation.


looking at a new build


£165995 purchase price
£41000 deposit (5% and help to buy)
£124.500 mortgage needed


bit of back ground


im 28 working part time with annual income of £8000 plus £1800 child benefit (i know some lenders take that into account as income)
my partner 30 works full time with annual income of £28k-£30k
we have 2 children with no childcare costs to pay



he has a 14k loan with HSBC which he got last month to pay his car finance off to lower apr and lower monthly payments - (£260 a month)


this is our only debt, we both have credit cards which are clear/ £50 on each and paid in full every month)


no other loans or debt


his credit score (i know it means diddly squat) is 939 no late payments, defaults or searches (bar the one for the loan last month) and few open and closed accounts


mine on the other had is dreadful. 3 years ago i had a relationship break down ended in 6 defaults which have all now been settled/paid off
over last 3 years ive never had a late payment and my credit cards are clear/ paid in full (£50) every month, no searches in the last 7 months


would we be looking at a bad credit mortgage (precise, alermore, kensington) given my history or would my partners excellent report balance mine out a bit? ive heard halifax and natwest are not to strict when it comes to bad credit but is mine just too bad?



we did have the idea of buying a cheaper house with just him on the mortgage but if we can i really want to be on it even if it means paying a little extra for the next few years till we can remortgage to a cheaper rate.



any advice for us? do we have a chance with halifax or natwest or is bad credit mortgage our best bet?

ACG

It is a little hit and miss as to whether it is normal rates or not. Definitely worth a try, but with 6 defaults, I think it might be a tough ask relying on someone else to try and balance it out.

There are a few other negative factors, small deposit (5%), £14k in debt. If your deposit is a gift then I think your chances of high street rates are reducing even more.

But you might get lucky.

betweenrockandhardplace

hello thanks for your reply, the deposit we have saved ourselves, i am currently looking for a full time job at least £17k a year, i do have a job interview today so fingers crossed, do you think if i up my income it would help?
we can up the deposit to about 7% if we really need to but wanted to save a little back incase we need to buy anything for the house, turf, fencing etc


i have a lifetime isa open for the last year which has £4000 in so i didnt mention we will get an exra £1000 towards deposit including the 5% we have put in.
so at least £9k garenteed, we could up this to £10k if we need to


we will be over paying the mortgage every month by as much as we can but i guess that doesnt help us till we actually get it.

csgohan4

affordability will be tight especially with that debt. You need to get a broker who can advise you of your options

RelievedSheff

I would use a broker with experience of helping people in your situation find a mortgage. They will be best placed to find the right deal for you.

We didn't think that we had a chance of getting a mortgage due to two CCJ's on my credit file but we got one with Kensington on a short term fixed rate by which time my credit file should be clean as a whistle and we should be able to remortgage with a mainstream lender.

ACG

I do not think 5-7% will make any significant difference. It is probably worth speaking to a broker. I think you will be fine getting a mortgage, it is more just about the rate.

amnblog

If you are involved in the application this is a case for a Broker only.

Forget high street lenders.

You say your relationship problem was 3 years ago but not when the defaults were registered on your file which is key.

You will need a specialist lender. This will put an extra load on affordability for your Help to Buy loan which is a further complication.

Changing your job prior to application is likely to put possible mortgage options on hold for three months minimum.