Hi, I've tried having a search and have read lots of threads; but I still have some questions. I hope you don't mind me starting a thread to get some advice, even if the issues may be fairly common. Hopefully it may help others in the same position too, I know there are lots of people on here who're saving for deposits.
I know that the most important thing I need to do in order to buy a house / get a mortgage is to save for as big a deposit as I can manage as well as sorting any debts. I've started this and know I'm a fair way away from being ready to buy, but I'd be devastated if I saved for a deposit then discovered there were other things I should have done to improve my likelihood of being accepted.
1. How long do I / my husband need to have been working for in order to be considered?
We've both recently changed jobs (within the last 6 months) and I've heard that lots of mortgage companies are looking for stability in employment records... so how long should we be in the same position before applying?
2. I have two credit cards, but they're both with 'subprime' lenders... should I close these?
Is having a credit card seen as an advantage or a disadvantage? Should I close my poor credit cards and consider opening a standard one when my default drops off my credit file (March 2014)? DH also has a credit-builder card (he was self-employed for a long time so wanted to build his credit history) so am unsure what to do about this.
3. I have a satisfied default which drops off my credit file in March 2014, but DH has an 'arrangement to pay' marker on an account which has now been satisfied and closed.
There's a lot of conflicting advice about AP markers on credit files. This account has been paid in full and closed, but only recently - how long will this be causing us problems for?
4. We plan to save for our deposit, but have also been offered 'help' from DH's lovely parents. How much will a part-gifted deposit affect our chances?
Again, I've seen some conflicting advice about gifted deposits. Would it be wiser to simply save 100% of our deposit, then accept help from DH's parents later for any renovations needed?
5. What about Newbuy homes?
We've been advised that due to our circumstances we'd be eligible for a Newbuy home with a minimum 5% deposit. I've had a look at some of the available homes, and they're nice, but they seem somewhat overpriced and I've heard mixed reviews about the scheme... what do the experienced posters on here think?
6. Maximum lending
I've had a look at the guideline maximum amounts that lenders would be prepared to offer on our salaries and commitment levels and it looks to be between £130,000 - £150,000... I've heard that lending close to the maximum significantly reduces your likelihood of being accepted, what figure do you think would be considered to be more reasonable.
Phew, sorry for the epic post and thanks for any help... I appreciate you're not going to be able to give 100% reliable answers without more information, but any assistance is much appreciated.
I know that the most important thing I need to do in order to buy a house / get a mortgage is to save for as big a deposit as I can manage as well as sorting any debts. I've started this and know I'm a fair way away from being ready to buy, but I'd be devastated if I saved for a deposit then discovered there were other things I should have done to improve my likelihood of being accepted.
1. How long do I / my husband need to have been working for in order to be considered?
We've both recently changed jobs (within the last 6 months) and I've heard that lots of mortgage companies are looking for stability in employment records... so how long should we be in the same position before applying?
2. I have two credit cards, but they're both with 'subprime' lenders... should I close these?
Is having a credit card seen as an advantage or a disadvantage? Should I close my poor credit cards and consider opening a standard one when my default drops off my credit file (March 2014)? DH also has a credit-builder card (he was self-employed for a long time so wanted to build his credit history) so am unsure what to do about this.
3. I have a satisfied default which drops off my credit file in March 2014, but DH has an 'arrangement to pay' marker on an account which has now been satisfied and closed.
There's a lot of conflicting advice about AP markers on credit files. This account has been paid in full and closed, but only recently - how long will this be causing us problems for?
4. We plan to save for our deposit, but have also been offered 'help' from DH's lovely parents. How much will a part-gifted deposit affect our chances?
Again, I've seen some conflicting advice about gifted deposits. Would it be wiser to simply save 100% of our deposit, then accept help from DH's parents later for any renovations needed?
5. What about Newbuy homes?
We've been advised that due to our circumstances we'd be eligible for a Newbuy home with a minimum 5% deposit. I've had a look at some of the available homes, and they're nice, but they seem somewhat overpriced and I've heard mixed reviews about the scheme... what do the experienced posters on here think?
6. Maximum lending
I've had a look at the guideline maximum amounts that lenders would be prepared to offer on our salaries and commitment levels and it looks to be between £130,000 - £150,000... I've heard that lending close to the maximum significantly reduces your likelihood of being accepted, what figure do you think would be considered to be more reasonable.
Phew, sorry for the epic post and thanks for any help... I appreciate you're not going to be able to give 100% reliable answers without more information, but any assistance is much appreciated.