Will we get a mortgage

TotallyBroke

Thanks for your help minimike2

minimike2

That will be the top end of your borrowing on those salaries yes. What you need to make sure is that you are able to afford it - plus you will need a decent deposit what with the arrears history. Possibly 15-20% for the new house, maybe more to avoid paying an astronomical rate.

The fact your partner is going into a new job will be an issue too...not a big one, but for your own peace of mind I would recommend you hold off until he has settled in and steady in the job.

If I were you I would concentrate on spending the next six months paying the difference between your £1000 a month budget and your current mortgage payment off the mortgage as an overpayment to get the balance down as much as you can.

If you do this, you know you can afford a bigger mortgage and will have a lower mortgage, as well as having saved a bit of cash off the interest. If you do not do this every month, you know that you cannot afford to increase the mortgage.

TotallyBroke

Thank you very much for your advise. I will take this on board. Your advice has been fantastic.
I am getting the finances on board and hoping to start overpaying and saving. I just have a few obstacles at the moment but I am determined to get over them one way or another.

TotallyBroke

It's been a long time since I posted this and wondered if some more advice can be given.

My house has outstanding mortgage of approx £63,000 house could sell for £175,000 but for my figures I'm using the amount £165,000.

I've seen a property on the market for £239,950 but it's been hinted I could get it for £215-220,000.
So based on these guesstamate figures I would have £100,000 to put down as a deposit. This property does need work doing to it. Central heating a must and new windows asap. Bathroom and Kitchen will need doing but it's not urgent. So I'm looking at possibly getting a mortgage of £140,000 this is more than enough for repairs and will pay off every last debt amount we have. So a total clear break.

I took MiniMike2's advice but instead of using the extra money on the mortgage we clear a huge chunk of debts and bills each month.

What i would like to know is.. Would we get this mortgage? Salaries are £20,500 and £17,000pa and both have bad credit ratings. Although getting better over the last two years. I've been told that Whole of the Market advisors don't exist anymore. To be honest I wouldn't know where to start looking for one. I'm going to speak to my lender now and see what they could offer me if anything at all. Does anyone have any ideas or suggestions on possible lenders or interest rates please.

luckyfool

Totallybroke :

1. Whole of Market brokers do still exist, not sure who is telling you different. If you were in a stronger position with a good credit history etc then you would be wise to ensure your broker researched direct only deals in addition to the products available through brokers. A good whole of market broker should be able to help you

2. I am assuming that you have now got at least 12 months of clear payments being made to your mortgage?

3. Assuming the above, then given the likely deposit you can put down then there are definitely options open to you when you move. The lenders, and rates available will depend largely on what other credit problems yourself and your partner might have. e.g. Ccjs? Defaults? Bankruptcy or IVA? Amounts, dates, and when cleared (if they are) would be needed to get a good idea of your circumstances.

Toughluck

As long as nothing has really changed regarding yout credit I think there are a few lenders who would do this for you. If the arrears are 0 in 12 months I'd get soemone to DIP to the abbey as lending under 75% with adverse is referred to them (so they do accept defaults if they are historic). If your score is good enough and you are putting down a deposit you never know you may be in for a bit of good news. should that and Woolwich turn you down I can think of 5 lenders now that would be able to help you based on your first statement and the up to date income.

TotallyBroke

Luckyfool
A friend that works in an estate agent told me that wom advisors don't exist anymore. They said ones that claim to be cannot get deals direct. But I'm very happy to be told differently. Where can I find one. Obviously bank/building society are not. But are advisors in estate agents wom or do they reside somewhere else lol?
Mortgage, council tax, utilities and credit card all paid on time and up to date for past 12months. Only thing that is slightly behind is council tax service charges. But this will be paid off by the end of council year and does not show on my credit report. My CCJ has been marked as "satisfied" for approx 3years.

OH debts are showing as default. But we are trying to get exact amounts etc from the companies. Once we have this info back there will be an arrangement to pay if we can't do it in one go.

If we got the mortgage then everything would be paid off straight away.

Toughluck
I do not know what "DIP to abbey" means but I presume you are saying they have been known to take people who have defaulted. Do you know for sure that they still do. Especially as most companies are pulling mortgage deals.

One more question. Can a lender give me an idea of what they would/could lend us without leaving a search mark on our credit files. I gather from this site that too many searches also gives a negative effect on reports.

Thanks

geoffky

why go from small debt to very large debt in these trying times? who knows what is around the corner job wise....your not looking at risk are you?

TotallyBroke

Hi Geoffky,

One of the reasons we want to make this move is because we have a young family. At present we live in a top maisonette. Each maisonette being upstairs and downstairs. So we have to do two flights of stairs before we get to the front door. Therefore we have no garden and it's hard work carrying toddler, pushchairs, bikes etc up and down. There are no good parks locally for little one to burn off steam.
Another reason is this property is a leasehold property through the council. I'm just fed up of giving them money for nothing. I already pay them £95 per month for stair cleaning (that is never done), lighting, grass cutting and other such stuff. Because I lease from them I do not own 100% of my home. If they decide to renew guttering I have to pay them a percentage whether I think it needs doing or not. The windows do not even belong to me. So if they decide to put new windows in I'm stuffed I have to pay for them whether they fit them in my property or not. Other estates have been charged £8,000 for windows they do not want. They have recently written to me saying they are going to repoint the brickwork and do some guttering repairs (guttering replaced approx 3years ago so shouldn't need repairs). They estimate the cost of beeing £5,000 per property. I would put a serious bet on that the final costs come in at nearer £7,000 by the time they finish. I will have twelve months to pay them or I can extend it onto my mortgage if lender allows me.
So my reasoning is I've almost finished paying off the last lot of work they did why not extend my mortgage for myself. If I can do so, I could get a freehold property that I can do repairs as and when needed, as and when I have the money and not be told tough you have to pay or you are breaking the terms of your lease and therefore can be thrown out of the home you are paying a mortgage on.
I can understand what you mean about a small debt compared to a large one. But now with the above notes I hope it explains that it's not always a small debt with the extra being thrown at me.
As for job wise neither me or partner are work shy. If we both lost our jobs Monday we would be working for agencies scrubbing toilets by Friday. We have never been out of work for more than a couple days. May not be the wages that we are on at the minute but money will come in. I will not get into the same situation again. I have been burnt before through my stupidity it will never happen again.

NeilB

Just so you know, I assume DIP stands for Decision in Principle