First Time Buyer Urgent Help Needed

Mucky_2

Hi All
I'm not a newcomer to the site, but i am to the forum. Keep up all the good work Martin and guys!!!!

I am looking for help for me and my girlfriend as we are desperate to move in together and get ourselves on the market.

First off, we have seen a few houses we like in the region of £107k - £120k. Me credit history is very poor i think with 3 defaults on it amounting to £3k but i have a loan which i keep up the regular payments as i cant be doing with having another defualt to my name. having said that, my girlfriends credit history is pretty good. (Never missed a payment). We are both on 18.5k a year and in very stable jobs. As we both are uneducated in the areas surrounding mortgages, what is best to do from our point of view? is it to go and speak to a broker(if so which on is best) or a bank(should i see my own building society). When i put our wages into a Mortgage calculator, it comes up showing about £110000. but i'm assuming that wouldnt be the case for us because of my bad credit. We currently have not got a deposit for a house, which is meant to help. So is there any mortgage lenders out there who would be willing to take us on at whatever price.

Any comments would be greatly appreciated as this is still a learning curve for us at the minute. Even if its names of who to speak to etc..

Many Thanks

dan1979

How much deposit do you have?

How old are the defaults, have they been cleared?

homer_j_3

when were the defaults registered?

I would get copies of your credit report and go and speak to a broker who will be able to use this information to advise where to go.

You need to be seeing an adviser who has access to as many lenders as possible - so ask how many they use -- get the number not the phrase "Whole of Market."

At 37k you are looking around 3 x income which is about right so depending on your credit and amount of deposit, you should be OK. However, I would approach it from what you can afford to repay rather than borrow and with interest rates as they are with sub prime lenders, it may not be worth you jumping onto the house ladder just yet.

Mucky_2

Thank you both for such a quick response. My defaults arent sorted as yet. They have been going back about a year. They dont chase me for payment either anymore. Do you know any good Brokers then Homer J? who is free preferably. We have only got £3k Deposit at the minute between us which is nothing in the scheme of things. My friend got a 110% mortgage so he could do up his house aswel. thats ideally what i was after but i've heard that they dont do that anymore

Cheers

dan1979

The defaults won't be a problem for sub-prime lenders but you're struggling to get more than 85% loan to value at the moment and rates are sky high.

You're much better off saving up more which isn't what you want to here but renting ain't so bad, especially when something expensive goes wrong.

homer_j_3

I would get the defaults satisfied, and a deposit saved. House prices are not going to go any further out of your reach as far as I can see.

You would need a large deposit as dan has said.

Mucky_2

So, if the defaults are sorted, how long before it starts to reflect on my credit history. If i went to a broker today and asked him what he could do, would that change if i asked the same broker tomorrow with all the defaults sorted?

I'll try and get 10% deposit, but it wont be for a while. So, do you recommend renting for say 2 years and then hopefully, have enought for 10% deposit with my defaults paid off?