Mortgage advice with a default?!

[aspiringnurse]

Hi all,

Will try to keep this short as I've deleted this twice by accident before pressing post

Basically me and my partner and one year old living at my parents to save for house deposit.

I have a default on my credit file from two years ago (partner has no defaults etc and a good credit rating).

He currently earns 19k a year, I am a student (college) and looking to go to uni this year (mature student)

Is it possible to get a mortgage for us both (joint) even with a default?

House prices can be £130+ for a nice area round where we currently live..

5% of this (for first time buyers) = £6,500
Currently saving £600 a month (will be more once car finance and phone contracts are paid off)..

Thank you for any advice

You need to see a broker, who will be able to tell you if you qualify for a mortgage, or if you need to wait or save (a lot?) more. Make sure you both have Lifetime ISAs or whatever the right accounts are these days, there was two types of account, but one stopped a few months ago.

The default is likely to be an issue - have you settled the debt to which it relates? Defaults can be satisfied or unsatisfied, satisfied defaults, the longer ago the better, will be less of a negative point.

As a student, your income may not count for income multiples purposes, so you may currently be limited to about 4-5x your partner's income - so around £75 to £95k. I don't know the rules on this, so worth clarifying.

To buy a house for £135k, you'll have to make the rest of the purchase price up from the deposit. 95% mortgages are much more expensive than 90% mortgages due to the higher interest rate, so try to save a 10% deposit at least anyway, don't forget about fees and moving costs.

Then there's affordability - you need to be able to demonstrate that you can afford your mortgage and all other expenditure like childcare, bills, groceries etc, so make sure you know what these costs are.

Moneysavingexpert do a good guide for first time buyers, so have a look at this.

www.moneysavingexpert.com/mortgages/mortgage-guide/

I'd say try and aim for a 10% deposit as you will have a lot more options then. Plus remember you will need extra for legal and surveyors costs etc.

It might be worth talking to a broker now to find out how to minimise the damage done by the default - there might be ways you can improve your credit rating

Do you have a regular salary yourself? If not then they will based affordability on your partner’s income, which is likely to be a max of around 4/5 times his salary at most. So you’re looking at them borrowing you 95k tops and then you’ll have whatever deposit you’ve saved on top.