1st Time Buyer Not so good Credit Rating!!

sheerpeaches

No worries. We're pretty much in the same situation. We bought our first flat 2years ago. Only a one bedroom, but never thought it would be a problem to climb the ladder when we wanted to buy a house. But last week we applied for an increase in mortgage from our current provider so we could buy a new house and were declined because of our credit history. Which hasnt changed since we got our first mortgage! Theres just no room too manover.
So we're currently recieving our credit histories so our mortgage advisor can go through it with us too see if we can remove any past "marks" against our names!

JoJoArmani

I think you need to give more info ..how much the houses you are looking for cost etc before anyone can tell you one way or another if it possible.

However you would be best to contact a Mortgage broker direct to discuss.

Have you tried looking at online calculators? There are some around that will tell you approx how much you could lend (however they are usually based on a clean credit history).

Get a copy of your credit file and see how bad it is - it might not be as bad as you think. However I think lenders will deduct your loans etc from the total you could potentially borrow.

Good Luck

callyh21

Hi i looked on Halifax and that said £155,000 using there calculator Lloyds TSB was £123,000 ? we're looking somewhere between £120, and £155,000 i think?

Bismarck

Hang on in here, callyh21, there are some helpful types who could help after teatime, maybe....they could well be busy at the moment!

callyh21

Ok Cheers x

Phunky

With a total income of £28,500 and debts totalling around £12,000 between you both I think you will find it hard getting between £120-155k - if you do please tell me where!!

My partner and I are in the same situation as you we wish to buy but just cant get the money we want.

We have just over £50k income between us and are finding it hard to get quotes for above £120k

I wish you the best of luck, but the best thing to do at the moment is what we are doing - putting up with renting for another 2 years and saving as much for a deposit as possible!

callyh21

Hi Phunky

I put our details in the halifax website along with our tax credits award (which i forgot to mention earlier) and it came back with £138,000!!

But we have decided to pay off what we owe, cut back for the next 2 years then buy when we both have better credit ratings so can get the best deals!

beecher

Remember you need at 5-10% deposit, so you'll need between £6,000 and £12,000 saved by then. Can't see the situation changing that much in the next 2 years, as it looks like we're reverting to 'norm', ie people only being loaned what they can afford.

JimmyTheWig

callyh21 wrote: »

we have decided to pay off what we owe, cut back for the next 2 years then buy when we both have better credit ratings so can get the best deals!

Good decision, I'd say, in your circumstances.