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  • FIRST POST
    • fastnet
    • By fastnet 14th May 18, 11:45 AM
    • 33Posts
    • 32Thanks
    fastnet
    95% mortgages - do they exist for mere mortals?
    • #1
    • 14th May 18, 11:45 AM
    95% mortgages - do they exist for mere mortals? 14th May 18 at 11:45 AM
    Hello

    Hope you are all well. Haven't posted in a while but was hoping for some advice/opinions please?

    Bit of background: the last time I posted on the boards was to ask if we should sell our house to clear our debts and rent. After some amazing encouragement and helpful advice we did just that and sold. That was in 2014.
    • We have been renting ever since, saving and repairing our credit file as much as we could.
    • In October this year my husbands CCJ will be 6 years old and if I understand correctly will no longer show on his file.
    • We would like to buy a property again.
    • So we are looking at our financial options, and as our equity was spent on our debts we only have a deposit/savings of £22,500 (by the end of the year this should be closer to £27k)...We have been looking at the Help to Buy scheme, which is one possible option, but we also want to explore whether a 95% mortgage will ever be an option for us.

    • We are 45 years old
    • We both work full time
    • I earn £55k and my husband earns £50k
    • We have two children 11 and 12
    • No childcare or schooling costs
    • We have no HP or loans
    • We have £7k credit card debt (paid off monthly on 0% interest)


    My assumption is that although we would 'pass' the affordability questions, our issue will be our credit history in terms of getting a 95% mortgage...if this is the case then the only option open to us in terms of buying a property is a Help to Buy loan for a new home.

    Any thoughts/experiences would be very welcome.

    Thanks
Page 1
    • ACG
    • By ACG 14th May 18, 12:20 PM
    • 16,831 Posts
    • 8,781 Thanks
    ACG
    • #2
    • 14th May 18, 12:20 PM
    • #2
    • 14th May 18, 12:20 PM
    Get all 3 credit reports in front of an experienced broker.

    If you have had issues with certain providers, that information can get shared with different banks - for example RBS/Natwest are the same, HSBC/First Direct are the same and so on. So debt with one, may rule out more than one lender.

    It will all come down to how everything appears on your credit files.
    The 3 are Experian, Equifax and Call credit.
    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.
    • fastnet
    • By fastnet 14th May 18, 1:02 PM
    • 33 Posts
    • 32 Thanks
    fastnet
    • #3
    • 14th May 18, 1:02 PM
    • #3
    • 14th May 18, 1:02 PM
    Thanks ACG - I have all of our credit files so will find a broker and take it from there.
    • Thrugelmir
    • By Thrugelmir 14th May 18, 5:30 PM
    • 58,462 Posts
    • 51,837 Thanks
    Thrugelmir
    • #4
    • 14th May 18, 5:30 PM
    • #4
    • 14th May 18, 5:30 PM
    our issue will be our credit history in terms of getting a 95% mortgage...
    Originally posted by fastnet
    Turning the question around. How much are you proposing to spend on a property?
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • AnotherJoe
    • By AnotherJoe 14th May 18, 6:05 PM
    • 9,393 Posts
    • 10,377 Thanks
    AnotherJoe
    • #5
    • 14th May 18, 6:05 PM
    • #5
    • 14th May 18, 6:05 PM
    Are you spending £7k a month via credit card or did I misinterpret that ?
    • FTBWannabe
    • By FTBWannabe 14th May 18, 9:47 PM
    • 4 Posts
    • 2 Thanks
    FTBWannabe
    • #6
    • 14th May 18, 9:47 PM
    • #6
    • 14th May 18, 9:47 PM
    Hi fastnet,

    I'm definitely not an expert and I know all circumstances are different in the eyes of lenders, but I've just had a formal full mortgage offer at 95%, 4.5x salary, with a settled default dropping of in August, and some late payments 3 or 4 years ago. The key in my case seemed to be affordability - salary is 50k with very low outgoings.

    Good luck!
    • retepetsir
    • By retepetsir 15th May 18, 11:20 AM
    • 1,104 Posts
    • 939 Thanks
    retepetsir
    • #7
    • 15th May 18, 11:20 AM
    • #7
    • 15th May 18, 11:20 AM
    I'm not sure you can use Help to Buy if you're not FTB's?

    The Great Declutter Challenge - £876
    ------------------------
    • FTBNow
    • By FTBNow 15th May 18, 11:55 AM
    • 75 Posts
    • 23 Thanks
    FTBNow
    • #8
    • 15th May 18, 11:55 AM
    • #8
    • 15th May 18, 11:55 AM
    Not sure if I would qualify as a mere mortal, but I have had two late payments in the last twelve months and two-three months of payday loan usage (again in last twelve months) and me and my partner have just been approved for 95% LTV with Santander. Admittedly we are late 20's and early 30's with good affordability, but I think we're proof that a bit of a lapse in credit history isn't the be all and end all.
    Last edited by FTBNow; 15-05-2018 at 12:06 PM.
    My goals:
    1 x iPhone finance to pay off by July. Current balance: £628.
    4 x NSD’s per week
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