in simple terms for the uninitiated. stuff about house buying mortgages and whaever goes with it - and also credit rating.

[Tortington]

the likleyhood of many responses is slim considering the time.

okay - just this week i was spouting about chai round neck stuff to a mumsnetter whilst my secret shame is

i want to have my own home. join the capitalist pigs. and weave baskets or whatever you do

so paid for my credit rating from equifax online this evening. and well was quite surprised actually.

however i dont think its good enough for a lender. i was "fair" in the traffic light system had some red stuff from 2000 - but they only keep it for 6 years.

with that in mind why could i see back to 1999 on the report?

the northern rock do a loan to cover the %5 deposit you need ( basically shafting you by paying the 5.67 interest twice) but whatever has to be done has to be done.

so do you have to be whiter than white on your credit report

i have no court things - just one account with erratic payments and another with a default in the oct and a setttlement in the nov!

see i think this is fine. but apparently its a red bit and red isnt good.

are there lenders who lend to a person such as misel'?

or should i go back to being one of the masses and count my blessings i am not working for the 'man' but rather working for ther erm.... pub!

Absolutely no bloody idea, but thought I'd reply just to show that there are other people in the UK up at such a bloody stupid time

Actually, with all the 100/105% mortages over 25/35/45 years, I'm sure that somewhere out there, there is a lender who'd be happy to have you. I'm sure somebody more financially astute will be along in the morning.

custardo I don't have any advice /knowledge but I am up - good luck with getting the mortgage - I really think its worth it - even if you don't have an initial downpaymentand pay more interest, because the equity you will hopefully acquire over a couple of years will really make it worth while

bumpity

Custy - Northern Rock lend based on credit rating and your credit rating dictates the percentage of your income that they'll lend you. If it's high they lend you 4.1 (I think), if it's fair they lend you 3.8 and if it's low they lend 2.8. Those figures might not be exactly right but it's something like that.

I'm sure other lenders do the same thing but the mortgage we got back in May was with Northern Rock, using this method and the deal was good too - interest rate low (4.something), opportunity to overpay, opportunity to take back out what you've overpaid if you need it.

Agree with apronstrings. My very first mortgage on a London flat when I first started work was with a graduate mortgage and it was 100%. It was the only time I needed 100% because with every subsequent move I've had a good deposit with the equity I gained on the property.

Having a 100% mortgage is fine - can you afford the payments? If so, then go for it. You're only in trouble if you go into negative equity but choose your property and location well and this shouldn't be an issue imo (some people are still harping on about a 'crash' but I honestly don't think it's gonna happen).

anymore?
gdk - that was really useful ta

Custy, me too re the wanting to own a house stuff. Afaik different all lenders have their own criteria/scorecard system/rules and they differ from lender to lender. Your credit rating doesn't sound terrible to me. In your position I'd

• make sure all payments were up to date before applying, they'll want to see that and it will help I should think

• don't apply for loads of credit (or any if you can help it) between now and applying for a mortgage

• don't move house, sure you weren't planning to but anyway

• basically you can pretty much always find someone who'll lend to you but it might be at a higher rate if your credit rating's not great. But even if your credit rating's good (mine is and I STILL got turned down for a credit limit increase a while ago) you can't know what a given lenders rules will be so all you can do is do your best.

I know the feeling Custy, re not owning somewhere. I'm not sure what we're going to do but we've worked out that if we were to buy where we are now it would cost us double what we're paying in rent so we are probably going to wait a bit.

There are lenders who will probably sort you out with a mortgage whatever your circumstances, but I guess you would probably pay a premium if you were seen as a having a dodgy credit history.

When we sold our house I was worried because I couldn't see how the guy could afford it - I knew he'd borrowed the deposit from family and needed to borrow around £140K on his salary alone.

The Estate Agent kindly pointed out that I wasn't his social worker and I should just take the money and run! Somehow he had persuaded his mortgage company that he did cash jobs at weekends etc and they took that into account? Sounds dodgy to me, but who knows?

thanks very useful.

i wondered whether you could anser me this.

if we apply for mortgage and get turned down - i guess like other people checking your credit it will appear on the equifax statement.

now.

my dilema is this.

do we risk it now - having a go at applying - or do we wait a couple of years until the credit rating is definatley ok.

thing is - you never know what might happen in 2 years - which could fuck up the rating

and

we are already stretching it - trying to get onto propery ladder

we could only afford a 2 bed - and have three kids. so either - we hope for miracle - or we sleep on sofa bed for a few years to get the equity.

thing is - i'm just not sure i want to wait any more.

my dh has been putting me off for years - with the quality of life stuff - thing is i am not as ( this is ironic i know) materialistic as him - so if we have to for go the luxury pub once a week or the luxury pizza when we dont feel like cooking - or the expensive mazzas and milkshake we had yesterday - then fine.

that turned into a rant - there is a question in there - so any advice?

Personally, I would go for it; property prices are still holding in most areas, and in our area most houses were up for around £10,000 more this year than they were last....so the longer you wait the more expensive houses are PROBABLY.....

We are in the same position, can only afford a two bed but are going for it in order to be on the ladder.

If I were in your position I'd go through a mortgage adviser because if you tell them about your credit rating they will be able to advise you who is most likely to lend to you, hopefully meaning that you won't have any rejections to show up on your rating! tbh our rating must be similar to yours and we are applying for 4.8 x joint from Northern Rock (haven't had it through yet but it's all proceeded to survey etc so we think we're ok).

Go for it!

your credit rating doesnt sound that horrendous tbh. go to an independant mortgage adviser who will tap your details into a computer and it will bring up all the lenders willing to lend to you, then you can get a mortgage agreed in principal, that will involve a credit check but the thing to remember is, in the months leading up to your application, dont default on any credit payments, inc normal household bills, dont apply for any extra credit and dont shop around for a mortgage with lots of diff lenders uless you nly go through the mortgage adviser as each time you apply for credit, get a mortgage, loan quote, your credit rating goes down, ridiculous i know.
i think you are safe for the next year or so with regards to house prices.obviously you could try cheaper areas, but the saying is, buy the worst house in the best street, not the best house in the worst street.

do i just google mortgage advisors?

how much do they cost?

Custy, we used the one at our estate agent and he was fantastic. It didn't cost us anything and we got a great mortgage deal. Usually when you go to look at a house they ask you if you have a mortgage in place adn whether you want any advice - most EA have a FA. Some people aren't comfortable with this but it worked for us.

Custy, google London and County mortgages - their advice is 'free' (ie they get commission from stuff they recommend, but you don't have to take it) and they are very good. Recommended by moneysavingexpert (used L&C last time we re-mortgaged)

What area are you in? - have you looked at shared ownership?

There are always ways Custy.Royal Bank of Scotland do a self cert mortgage and so do a few others.Also you can get higher multiples with northern rock and they also lend you a bit on top for any repairs etc.Give your salaries as the absolute max when you apply Then let me know where you are looking as I have been really lucky finding properties in teh past and would love to help if I can.There are always ways of making a 2 bed stretch aswell so don't worry about that too much xx

Custy - we found a free mortgage advisor a bairstow eves (part of countrywide group) and she was very helpful figuring out what we could afford. Your credit rating doesn't sound too bad btw - about same as me (was a very irresponsible student!). Just make sure you speak to someone before applying as everytime you apply and don't take up the offer you get a 'black mark' on your rating - not fair but just how it works.

Homeowning is financially still the best option according to the experts so go for it IMO!

Agree with Spacecadet, We have shiny new mortgage, despite a default on my rating (btw I think it may be 8 years) after arranging a deal through an independent financial advisor.

Don't under any circumstances approach any lenders directly, you need someone who can ask about your specific circumstances before any credit checks are made, because these will impact on future borrowing. A broker is also a good idea because they have access to deals not available on the high st. We have a better rate than most people I know despite my history, and our relatively low income.

If you get stuck, custard, I'd be happy to recommend the people who sorted us out. Good Luck!

i used a fa through an estate agent, he was independant, however you do tend to find that for things like insurance, they will only recommend certain companies, mine would only use norwich union, but you are under no obligation to use their recommended company for your insurance, just say you will arrange it yourself.

We have a similar problem and are currently living in a 2 bedroomed council house, we both have bad credit and so we have decided that we are going to put in the right to buy and buy our house as you get a percentage of the value of the house knocked off depending on how long you have been a tenant with the council (I have 7 years now) and we have worked out that our house will probably be worth around £70k and we will probably get about £20k knocked off that so it stands us in good stead for when we sell it, it really is our only option although we would love to just go out and buy a 3 bedroomed house as we have 2 children (boy and girl).

Once we have bought though there is the option of doing a loft conversion.

Which website did you get your credit report with Custy if you don't mind me asking?

equifax.

you have been really helpful. i googled a mortgage advisor and found one called 'active mortgage advice' in brighton. advice is free they get their money through a commision once ou get a mortgage.

have decided to say to mortgage advisor - that we can only spend x amount per month inc insurances - rather than a total amount.

noddy i am looking in worthing primarily and the sea front towns from bognor to portslade. he kids have to still go to same school in worthing and could catch a train if need be. so shorham lancing littlehampton all those and the ones i have missed. would love some help. can spend up to ( we think) 140k. which is cock all really.

wouldnt want an ex council looka likey house if at all possible iykwim.

saw one recently in worthing 2 bed and the loft was termed "a hobby room with velux window" - so erm. third bedroom then! for 137

saw another in durrington. twas nice needed updating 3 bed garage patio doors mature garden offers in access of 140 - showed dh who used to work there and he said "fuck that" told ds (16) he said " you couln't let the twins out toplay"
i reckon they gone soft!

thanks everyone - told dh to make appt for thurs with mortgage advisors - and to get all necessary paperwork - like bills and stuff together - he is off from wednesday.

just thought i'd bump this am for any more advice

Custy hobby room is bedroom without planning permission and is quite easy to apply for retrospective regulations once you are in and do a few updates to make the room'legal'I can help you with any of that stuff and have a really good team of reliable non dodgy non expensive builders.I really hope you get it sorted you do feel a bit of a capitalist pig BUT you also feel really secure and it is a great investment(sorry to sound like a poncy estate agent)BTW as you are not selling anything you are in a really good bartering position with any offer you make as 1st time buyers have no chain hence no delays so sellers love you.And look for worst house in best street not the other way round.

thanks noddy. if you see anything i might be interested in will you mail me? creamycustardoathotmaildotcom