Will i get a mortgage ?

trevor_john

Hi Guys,
A quick bit about my situation.I am 46 married and my wife is 42.I am self employed and earn approx £25000 a year my wife earns £10000 per year.

I have just complteted a 5 year I.V.A. with no probs or missed payments etc.I now owe nothing and have no outstanding ccj etc.

My wife has a perfect credit file and the question is would be able to get a mortgage for £115.000? the house we are renting (7 years ) is about to be sold and we have first refusal.

Looking forward to any help you folk can offer

Trevor

Fairdo_2

You say you need to borrow £115000. Do you have any money you are putting down topurchase the property, or is that the Purchase Price aswell?

If the Purchase Price is higher, are you being given an incentive as an existing tenant?

trevor_john

Hi thanks for the reply.I think we will get a bit of an incentive as existing tenants.we dont have a lot to put down as deposit would this be a problem ?

thanks Trevor

trevor_john

Ah well looks like a no then.

nadnad

How much would you have to put down? Don't forget about other fees such as solicitors fees and initial mortgage fees. 5% is the usual deposit - £5750 in this case. The best thing is to either start looking around on this site or go into an independant mortgage advisor and see what they say - they should be able to give you an instant answer - theres no point in wondering for ages - go in tomorrow -alternatively go to one of the mortgage comparison websites listed in the mrotgage section of this site - input your details and see what it comes up with - it will give you a pretty good idea.

Fairdo_2

Sorry Trevor_John for not responding earlier. Things getting a bit manic with the day job!

May not be a major problem, but it does depend how much this incentive is.

The more risk the lender puts into the security, the less likely they are to be flexible. The IVA would be a problem with many Lenders, but a couple of high street lenders may consider you.

It would be important for you to get a copy of your current credit file to see how it looks.

I cannot assume your overall situation, but lenders would need the bigger picture before saying yes or no.

I would consider looking at Lenders on a "menu" basis, where you can look at borrowing with a lender that has the mix of mainstream and sub prime.

This way, get a broker to apply on a mainstream basis, speculatively, so that if things are worse than mainstream allows, they could move you down the products on a sliding basis, to the level of your risk situation allows.

I am assuming that "Sub Prime" would be the most likely option based on your credit file.

Abbey are the bigger Mainstream Lender that can be forgiving with past slip ups, but bear in mind if you go through an Agreement in Principle with too many lenders in a short space of time it starts counting against you.

Menu lenders from the top of my head would be: Chelsea, BM Solutions (They have an Agreement In Principle system that does not put a footprint on your credi file, so they could be a great starting point), Bristol & West, GMAC RFC and coming soon Accord Mortgages (available via Intermediaries only).

Hope this helps. Sorry for the delay, but I can't alawys read the forum every day.

trevor_john

Wow thanks for that .I had hoped the IVA would not be too much of a problem as it was completed with no probs at all.
I have bothy files and they still show the defaults that led to the IVA and are not due to drop off for another year.I havce been paying rent for the past 7 years to the same landlord approx the same as a mortgage would be.I thought this may reflect in my favour for a new start and a mortgage.

Fairdo_2

Could do, but I would speak to a Broker to get the best out of your situation.