Will we get a mortgage

TotallyBroke

I currently have a mortgage with Woolwich/Barclays. I've had arrears with them in the past. They took me to court for a possesion order but it was never given. (Although if I defaulted on the payment plan it would have automatically applied) All arrears paid off and been on time with payments for the past 9months or so. I do have a satisfied ccj on my file for something else. My OH has no real credit history. He has 2 utility companies on his credit file and an old bank showing. All 3 are showing that he is in default. My question is what can we do as of now to get a mortgage in the near future. What sort of lenders would we be looking for? Would Woolwich take us both on as joint mortgage? Or will we have to wait until all the bad has gone from our files? Thanks

UK007BullDog

You need to pay your debts, clean your credit file.

There are hardly any lenders out there willing to take on people still showing as defaulting.

Barclays will try to get rid of you so you would need to look elsewhere.

I suggest you speak to an independent whole of market broker.

TotallyBroke

That's what I thought. Just need to get OH on board now to get everything sorted. Most credit agencies show payment history for the past 3years. So would 3 years be ok or would we need to wait for the full 6years for everything to be wiped off both our histories.

Dan_Collins_2

If you are not currently in arrears Woolwich should offer you someting. They will not want you on the SVR as you will find it harder to pay, and they will know that you will find it harder to move away.

They have some very good direct and existing client deals so if your not in arrears give them a call first.

TotallyBroke

I'm on a Open Plan tracker mortgage with them at the moment so would prefer to stick to that. Will they not do that? I'm rubbish with these things and don't have a clue

minimike2

Why do you need to change? That product runs for the life of the mortgage does it not? I would suggest there will not be anything cheaper available to you. Obviosuly I dont know what your tracker margin is, but in the current environment all the margins are much higher than over the last 5 years or so.

TotallyBroke

The two reasons for change would be 1. I want to move and would need to increase the mortgage and 2. Current mortgage is solely in my name. My partner now lives with me in my home and so when we move I would like us to have a joint mortgage. I was under the impression we could not just add his name to the existing mortgage. Am I wrong in thinking that.

minimike2

You can add the name to the mortgage with Barclays, however I believe that as its openplan you would have to do what they call an internal remortgage, which might mean you will not be allowed to keep the rate. I would call them and ask, i might be wrong.

What were the circumstances around your arrears? Are you sure that a bigger mortgage is wise?

TotallyBroke

Hi, I left my full time job and went and lived abroad for 18months. (Rented the property out without Woolwich's consent tut tut) Rent covered mortgage plus a bit. Then it all went wrong abroad so came home with tail between my legs. Needed a job so got cash in hand work in a pub. A whole £5ph. And that's where I stayed for almost 4years. Woolwich would try and take money I didn't have enough in there and boom they'd hit £40 onto my account. After a couple of these I cancelled the dd and paid money in manually each week. But some weeks, what with working all the hours I could, I didn't make it to the branch on time so again more charges. And so the viscious circle continued. By the end of it my arrears amount was 1/5th true arrears 4/5ths the £40charge on top for being in arrears each month.
I then found out I was pregnant and gave myself a massive kick up the a**e and got myself a proper job. Am working full time with an ok salary, partner too works full time with an ok salary so I think with a good bit of moneysaving we could stretch a bit on our mortgage.

minimike2

What are your salaries?

TotallyBroke

I earn £20,500 pa and partner cleared £1,700 this pay day with overtime. He will be changing his job in the next month and I think his annual salary will be almost £24,000 pa, what with shift allowance etc. So based on 3x joint salary we could get a mortgage of £136,000 which I think will work out at approx £1,000 pm over 20years