How can I get a Mortgage

[Abandonedforerin]

So I'm really wanting to buy my own place. Live in the North so houses are way cheaper than London, South etc.
Currently working part time, had a bad credit history due to one thing I hadn't paid years ago. This is now sorted and has been for a few yrs. Been into my bank a couple times but been turned down. Said I'm on a monthly heck and they'll let me know when something becomes available. Houses I'm looking at are between 80,000 to 90.000
Currently pay 550 a month rent. Mortgage would not even be this amount.
I'm just looking for advice really on anything I could do to speed up the process (if possible) or any other ways around it if there is any other way

Do you have a deposit? Can you increase to full time? Even with bad credit history a decent mortgage broker should be able to find you a deal although it might not be the best or lowest in terms of rates.

Lots of excellent Mortagae advisors don’t charge a fee so it’s prob worth finding one and speaking to them. They’ll be able to tell you what you can do to help yourself

How much do you earn? That will depend on how much they’ll lend you.

How long ago was your credit default? When you say the bank has you on a ‘monthly check to let you know when something is available’ does that mean they won’t offer you any mortgage at the moment?

Your best bet would be to speak to a mortgage broker. But it would be useful before that to know if you’re being realistic in thinking you can get a mortgage - and knowing what you earn and how long ago your credit default was would help.

Try and speak to a mortgage advisor they can try various banks at once and give you all the options available to you. I have used these guys a few times, I didn’t pay anything they get commission from the bank premier-propertysolutions.co.uk/meet-the-team/

I do have a really good deposit but yeh the bank said nothings coming up at the moment but will keep checking. Not possible at minute to increase hours at current job but I'm looking for something with more hours. Default was around 5 yrs ago but think its 6 yrs it stays on you're file for.

Don’t go to your bank, use a whole of market broker. L&C are really good and free.
Is it possible to increase your hours at work?

Have a look on the London and Country website, our Bank turned us down twice, we used the L&C broker and they have got us decent rates both times.

Unfortunately it might be a case of wanting for the credit issue to drop of your record, after 5 or 7 years (I think) depending on how bad. In the meantime have you done everything you can to improve your rating? Putting a small amount on credit regularly then paying it off can help to show you can use credit responsibly, make sure you make every bill payment on time (direct debit), and keep everything as stable as possible (don't move house or change banks etc).

The second issue could be income if your part time. They will never offer more then 4.5x your annual income and may offer less depending on affordability calculations. Are you able to increase hour? Even temporarily, they quit often just look at the last 3 months, so if you do overtime in the run up to applying it can help. For my first mortgage, my employer paid for unused holidays at the end of the tax year, so I timed my application to it which helped.

Other things that might help is seeing a broker (some are free) who can look at different banks and will know which are more lenient. And maybe instead of asking for a set amount, ask how much they would lean and see if you can do anything with that. It could be they say no to 90k, but would lend 70, which, depending where you are, could still get you something, or you could try to save the difference and use a bigger deposit.

A mortgage broker. Also read www.moneysavingexpert.com/mortgages/

Look at Moneysavingexpert to see what you can do to boost your chances.

Best things will be:

Get a LISA to boost your deposit if you're under 40.

Use a credit card for a small amount of your normal monthly spending and pay off in full every month.

Never go into overdraft or use Klarna, payday loans or similar.

If there is anything wrong on your credit record, ask for it to be changed. Was the one thing that didn't get paid a mistake, or something you couldn't pay? What was the amount? Has it been repaid now?

Trim your bills and non essential costs as much as possible so can save as much as possible and your affordability is boosted.

Talk to a whole of market broker, who might have better options than your own bank.

You need to go wider than talking to one bank!
Talk to a whole of market advisor.

What is your salary?
What level is your deposit?
If you tell us these, we can tell you if you are likely to get something via a broker or if you are miles off being able to get a mortgage with anyone.

Remember, the fact that you can pay your rent and it’s lower than a mortgage isn’t the key thing they look at.

Speak to a whole of market broker that wont charge you. Try "small" companies not just the big ones with the big advertising budgets. This will give you an idea of what will be achievable for you.

There is also a lot more to owning a house than paying the mortgage- yes your rent will probably have been more than your mortgage payments but equally your responsibilities as a home owner are vastly different.

Said I'm on a monthly check and they'll let me know when something becomes available.

the bank said nothings coming up at the moment but will keep checking

They are rubbish reasons - did they not give you a proper reason for declining, such as you don't earn enough/your credit file is a problem/your deposit is not enough? If not, I would push them for a proper reason.

One 5 year old default shouldn't be a barrier to gettng a mortgage, which Bank are you trying? Have you actually checked your credit files and is that the only negative think on them?

I would speak to a proper whole of market broker, not a mortgage advisor from your bank, but as a PP has already said, if you can let us know your annual salary/deposit amount then someone will be able to give an idea of whether you are likely to get a mortgage or not.

I have around 10.000 deposit, as I work part time my earnings are topped up by wtc. Have previously spoke to a advisor he recommended my own bank as they take the wtc into consideration whereas some places won't. It was an unpaid water bill that mounted up over a number of years and was few thousand which I paid off at 106 a month and its been paid now for nearly a year.

Could be that your part time salary simply isn’t enough.
Can you work full time?
Few people can afford to buy property as FTB if only working part time.
Working full time instead of being on benefits would be viewed more favourably.

You haven’t been given real reasons for no mortgage but fobbed off with nonsense. Is there someone who can help you in your communications about all this as you do sound very inexperienced and perhaps they aren’t taking you seriously or being fully honest about your chances.

Good luck.

Did the debt with the water company go to court? A CCJ will be a big black mark when it comes to getting a mortgage.

Also, if the debt was only cleared a year ago, it may still be on your credit file for some time. It might be an idea to get a full credit report from Experian and seeing what's on there. And use one of the free online credit scoring sites to see what your credit score is.

@Abandonedforerin

I have around 10.000 deposit, as I work part time my earnings are topped up by wtc. Have previously spoke to a advisor he recommended my own bank as they take the wtc into consideration whereas some places won't. It was an unpaid water bill that mounted up over a number of years and was few thousand which I paid off at 106 a month and its been paid now for nearly a year.

If it's only be paid off recently it will be A while yet before your credit score changes. As others said I would depend on your earnings, deposit and credit score to know of you stand a chance of getting a mortgage