Is getting a mortgage possible in the worst of circumstances?

mightyjack

Am I dreaming?

Completed an IVA 3 months ago

Average to low credit score

Single person applicant although married (wife in IVA) with 2 kids

£0 savings although could probably raise a deposit around 10k

Employed 41k with bonuses

Caz3121

what sort of house price are you looking at?

born_again

You would be best speaking to a broker. Expect higher interest rates.

mightyjack

https://forums.moneysavingexpert.com/discussion/comment/81888832#Comment_81888832

Well I'd guess between 200 and 250k looking at local property prices

Exodi

https://forums.moneysavingexpert.com/discussion/comment/81888832#Comment_81888832

I always look at it the other way round.

If OP has income of £40k then they might be able to get a mortgage of £180k, plus the £10k deposit means a house price of £190k (in reality they'd likely need at least £15k as alongside the deposit, they will need money for the conveyancing, moving, etc).

https://forums.moneysavingexpert.com/discussion/comment/81888850#Comment_81888850

£200k may be attainable with a little work and luck, the higher range would need you to either increase income by at least ~£10k p/a, or save up a much larger deposit.

That said, a £10k deposit on a £200k house is 95% LTV, so as @born_again mentions, expect high interest rates.

In an ideal world, you could save up £20k, which coupled with a mortgage of £180k in line with your current income allows you to afford a £200k house.

But I totally appreciate it's easier to say "just save £20k" than to do it!

Desmond_Hume

A £250K house would be what, little over a grand a month on a 30 year term at 3.75%. Without knowing all your other outings can’t say for certain. I’d not be comfortable doing that.

ACG

Where is the deposit coming from? If your wife is contributing towards the deposit, that might make it trickier.

Your wife would not be able to get a mortgage for a little while, but really until 3 years out of the IVA in order to get normal rates.

Not the easiest case to place so definitely one for a broker.

fatbelly

An iva drops off your credit file 6 years after it started, or when it finishes, whichever is later. Considering they often last 60-72 months, it sounds like yours will disappear soon

mightyjack

https://forums.moneysavingexpert.com/discussion/comment/81889282#Comment_81889282

it will this year however many mortgage providers will only lend 3 years after completion which for me would be October 2028

mightyjack

So in short, I need to save my !!!!!! off for a deposit if I want a decent house!

Emmia

https://forums.moneysavingexpert.com/discussion/comment/81889468#Comment_81889468

Or you start with something "less perfect" and work up to your ideal place.