Mortgage- is this possible?

Hi, I was hoping someone could help..


Unfortunately I do not have a great credit history.. 4 satisfied defaults; Cabot £690 30/04/13, Lowell £620 12/07/13, O2 £220 05/01/16 and another one for O2 £115 29/03/16. And payment arrangement on a mortgage (mortgage account closed Nov 2015)


Since then I have had no late payments and I have a car on finance of £225 per month and I have 3 credit cards all with zero balance (Aqua £1.2k, Capital one £0.5k, Ocean £1.5k) and I am in the process of clearing my £2k overdraft (expecting to be done by the end of October)


Now I always thought I would have a bit more time on my hands to save a bit more money and buy a house next summer and by then two of my defaults would have fallen off. Unfortunately or fortunately ( I am unsure of which at the moment) My partner has sold his house a lot faster than expected and we now have £46k deposit towards our dream house, once the sale has completed. We earn £71k between us, and we have been looking to buy a house at £390k. My partner has perfect credit history unlike mine! Do you think we have a chance to buy one end of this year/ Jan? ( Our buyers are wanting to complete by Dec) or should we go in to rented accommodation until next summer? Are we able to use HTB alongside our deposit would that help our chances?



Thanks in advance


Amy :)
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Comments

  • ACG
    ACG Posts: 23,677
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    I think with a 15% deposit you could purchase at near normal rates. With less than 15% there will still be options but the rates will be around 5%.

    I can not comment on the HTB as I do not do HTB.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Thank you.. Is that 15% deposit and we could purchase in Jan 19, or would you recommend to wait until Jul for the two defaults to fall off?


    Amy
  • kingstreet
    kingstreet Posts: 38,690
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    amy2015 wrote: »
    Are we able to use HTB alongside our deposit
    Are you buying a newbuild?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • Hello Amy

    We can't recommend specific lenders but I cannot see any reason why you would not be able to get a mortgage based on what you are saying.

    I tend to use some of the smaller building societies that manually underwrite where historic adverse credit is concerned, as I find that their lending criteria is less rigid and its nice to be able to speak to an underwriter rather than facing a "computer says no" scenario.

    The only useful bit of advise I can give you right now is to take professional advice. I know your credit issues are historic but if they are still on your credit report it can be a bit of a minefield getting the right mortgage.

    Make sure you do your research on the property in question and speak to a truly whole of market mortgage broker. Estate agency advisers are often pushy, inexperienced and restricted to how many lenders they can access.
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Yes it is a newbuild does that make a huge difference? Ideally we would like to not go down the route of HTB if we are able to get away with it but we thought if we could use it, it may help with my adverse credit as we will have a lower ltv?
  • kingstreet
    kingstreet Posts: 38,690
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    HTB Equity Loan is newbuild only, hence the question.

    Yes. If your builder supports the scheme it could be used. You need to bear in mind the affordability restriction on HTB means you have to meet lender and Government requirements.

    The loan is based on the value of the property, so you will pay back more if the property value has increased.

    Broker support would be a good idea with this as lender selection and HTB affordability will be key.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • Yes that was why originally we wanted to avoid as we would have an amount to pack back that may increase if the value increases, but then on the other hand if we struggle to get the 15% I thought we could use the remaining balance from HTB as our deposit is only 11.79%. Am I right in saying the HTB requirement means no adverse with in last 3 years, would I struggle as my default with O2 was 2016?
  • kingstreet
    kingstreet Posts: 38,690
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    amy2015 wrote: »
    Am I right in saying the HTB requirement means no adverse with in last 3 years
    No. You aren't.

    Acceptability for the mortgage by a lender is the only requirement.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • ACG
    ACG Posts: 23,677
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    15% and you could buy now, so January should be possible based on what you have said.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • amnblog
    amnblog Posts: 12,412
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    What has not been mentioned here is the affordability question Amy.

    Borrowing close to £350,000 with an adverse credit Lender on £71,000 income does not fit.

    A similar help to buy case will leave a Mortgage requirement of perhaps £260,000 which sounds more likely.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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