Struggling to get a mortgage

peteuk

I need some advice situation is below. 

Currently renting but have been served a 93 day notice.   Ends Mid March. 
Have tried to get a mortgage but defaults and pay day loans effecting this. So unsuccessful at present.  
Can move into another rented accommodation but this will double our rent and stop us adding to our savings. 

Credit file defaults - both paid in full. 
One default loan (1181118 money) Default Dec 2020 or Sep 19 (depending on credit companies) 
One default credit card (Capital One) Default Jan 2017

Last Payday loan taken March 21 and paid April 21. 

Current debt is £650 (me) and £2000 (her) 

I'm 49 this year and wife is 47. So reducing the period of the mortgage. 

Any suggestions or practicable advice welcomed. 

 

[Deleted User]

What loan to value are you trying to achieve? 

SuseOrm

Is a 93 day notice period a Scottish thing ? 

enthusiasticsaver

If you have a bad credit record you would normally approach a mortgage broker who deals with those who have poor credit rating.  However your payday loans are relatively recent and if you have debt still I am going to surmise you do not have much by way of savings either.  If you have a relatively big deposit (20%) that might help but you may have to continue renting until the defaults drop off. Your age is also against you as the term will be shorter meaning higher repayments. 

peteuk

Deleted_User said:

What loan to value are you trying to achieve? 

We have £30K savings, looking at the 280K market.

peteuk

SuseOrm said:

Is a 93 day notice period a Scottish thing ? 

No, its in the terms of my tenancy, I thought it was three months.  I think to save arguments they just did three 31 day months.

peteuk

mortgageFTB said:

peteuk said:

Deleted_User said:

What loan to value are you trying to achieve? 

We have £30K savings, looking at the 280K market.

So ~90% LTV?

What are your incomes?

£47K and £23K pre tax

aoleks

I think something is possible, but!

1. You need a broker and a darn good one.

2. the timeline is tight, you find a house and complete in 3 months, unless a miracle happens.

3. you need to reassess your relationship with money, there are some patterns.

peteuk

aoleks said:

I think something is possible, but!

1. You need a broker and a darn good one.

2. the timeline is tight, you find a house and complete in 3 months, unless a miracle happens.

3. you need to reassess your relationship with money, there are some patterns.

Already tackled number 3.  Over the last year we have paid off three loans and all other debts till we are down to one credit card and a next account each.  Not currently using the credit cards and over paying them.

SuseOrm

 all I can say is if you find a house and you put in an offer in the process has begun just communicate with the landlord show them the documentation and tell them that you’ll move out when it completes,  keep paying your rent in the meantime and whilst they might not like it they might just have to lump it and it saves you move in twice with all the associated costs .  

junglist_matty

@peteuk you started with 65k of debt and now you are down to 1k (solid effort)

At 49, a 20year term would surely be more than acceptable.

Your salary has to work in your favour (it's well above average), but those defaults sure don't look good.... Have you considered reducing your target budget and taking say a 2year fixed just to get your foot on the ladder? i.e. look for something in the region of £200k? You'd be far more likely to be approved if your LTV is lower and surely in your position, getting something is better than renting? ....Good luck