Help with 1st Time Buyer Mortgage & Bad Credit

MrsChips

Hello Everyone!

I'm looking for some advice on a 1st Time buyer Mortgage. Before I start I know its a bad time to buy but we are getting a real bargain from a private family sale, so for us its the right time!!

Here's the problem... We had been accepted on 2 mortgages Abbey & Future Mortgages (Orchid Finance) but both mortgages have now been pulled off the market as a result of the Credit crisis and both are now asking for a further 5% deposit (Which we are going to struggle to get). We need to borrow £120,000 and have a 10% deposit. We had been advised not to apply for a joint mortgage in my name as I have bad credit so my boyfriend had been applying in just his name. Do you think it would be better to now try for a joint mortgage even though i have bad credit - 2 names are surely better than 1? My situation is... I'm self Employed (Have been for 7 months so no accounts) I have an old Halifax student debt (I only owe £140 as I have been paying off weekly and could get this paid off asap but even when its paid i will still have a deffered payment strike on my credit score which goes against me & lasts 6yrs - I also have a couple of the usual missed payments here & there but nothing major). My boyfriend is OK for credit, he had a CCJ for a student debt but its all settled now and he's never had any Credit from anywhere.

I would like to hear from people with bad credit history who have recently been accepted for 10% deposit mortgages (Preferably in the last few weeks because things seem to change so quickly) I would also welcome any advice from people who are in the business and can advise me which companys might be borrowing at the moment - any recent succsess stories.

Thanks in advance ,

Mrs Chips

Wutang_2

you wont be accepted as you havent been self employed for long enough...

your partner might but probably with GE money (Igroup or First National) at a 8% ish rate...depending on income and credit score.

If the score is ok then possibly Coventry but you will only find out through an independent broker...

success stories may brighten your day but each application is totally different from the next

_Andy_

What is your boyfriends' gross annual salary?
As Wutang rightly says, the self-employed income from yourself won't be taken into account (not unless you want a self-certified mortgage but you'd be needing a 15% deposit at minimum).

MrsChips

My Boyfriends Annual Salary is £25,000 (not including any Target Bonus which could take it up by another £3000 approx)

_Andy_

Best bet would be to speak to a whole of market broker. off the top of my head I think First National would probably look at the case. Hard to say without details of adverse etc.

MrsChips

Thanks Andy - Can you tell me if we go to see a Mortgage Broker will they perform lots of application searches as this is already affecting our Credit score or do they just offer advice? Also where would I find a Whole of Market Broker? How do I tell the difference? Sorry to sound so Dumb!!

Wutang_2

"you will only find out through an independent broker" who will only check your credit file with your say so...

"where would I find a Whole of Market Broker?"..on the internet I suspect (and add the word 'free')

oneandonlyboy

Hi,

I'm in the same boat, FTB with poor credit history, most of the mortgage companies i have spoken to want at least 20% deposit most want alot more. The average is about 30% deposit.

Ive found the larger the deposit the more options there are.

Hope it helps.

Conrad

STOP THERE!

You say you are getting a real bargain, does this mean the price is genuinly less than market value?

If it is you may be able to use some of the supposed equity as deposit. Ah ha!

Certain lenders will allow this for blood relatives.

MrsChips

Thanks Everyone -

One & Only - I've not been asked for 30% yet!!! 15% is the most we've been asked for so I guess we should probably try to stick with this.

Conrad, you have an interesting point about the Equity and yes it is a blood relative. I will remember to mention it my my next application - We are paying £10,000 less than the valuation so in effect we have 20% deposit???