Mortgage Advice - credit rating, council mortgage, deposit!

Tapas2014

Hello,

I'm a new member to Boards so hope I'm posting in right place etc.

We have been renting for years and years, but I'm determined to get it together to buy someplace within the next 2yrs. I'm feeling the pressure a bit because we have one child and have been told it's very hard to get a mortgage when you have more than one kiddo, so want house before we go again.

Anyway, I have few Qs that I can't seem to get answered anywhere else and I really want to start getting my ducks in a row, so if anyone could help I'd really appreciate it!!.....

1) Credit rating: we have no debts, never had credit cards, paid off car loans, never had any big loans etc BUT years ago my hubby messed up a bit with a credit union loan, he caught up and repaid what was only a small loan, but I'm worried this will affect his rating? Also, over the years we did get behind in some utility bills but always caught up, would this affect it? I've ordered a credit rating report on both of us, so should see anyway in a few days, but just wondering if anyone here knew?

2) Council Mortgages: does anyone have experience? A friend of mine just got approved for one, but in a different county, so I'd love to hear if other people have experience. Just have it in the back of my mind as a Plan B.

3) Savings: without going in to too much detail, we can get a deposit together (we have some already) but it'll prob be made up of bonuses my husband gets at work, so lump sums going in a couple of times a year. I know banks like to see a history of regular savings! - but we have so little left at the end of each month :-/ But like I said we can save deposit - just in an odd way! Is this very bad?! I have mates that have been approved using deposits from parents, like with no savings!, but still concerned. The reason we don't have a mortgage yet is that old problem rent taking up money for savings! It's mad, our monthly rent, for the last 10yrs!, is nearly double what mortgage would be :-(

I'm so sorry, probably a far too detailed post!!! But if anyone could help or offer any tips I'd be so grateful! Thank you!!!!

Minera

Hi Tapas, I too have been on the scout for a mortgage and we have been to see several banks about what they need / like to see. So this is what i have come u with:

Both mortgage holders have to be in a permanent job beyond probationary period

Savings need to be 10% deposit to buy or 20% deposit to build ( very rough guidelines as each bank is different)

Prove that you, your partner can sustain paying a mortgage and live also - your rent amount will come into consideration (think of your monthly rent as savings you don't get ). Savings are preferable but as long as you have a fixed amount going out (rent) or into savings you should be ok

As for the credit union mix up - as long as it was paid off, there's nothing to worry about, same with utility bills. You may be asked about it but it shouldn't stop you getting a mortgage. I got my husband to take out a loan we didn't need to improve his credit rating, (it wasn't too bad but he was just young and too laid back about repayments, leaving a messy trail).

Don't know anything about council mortgages, sorry.

Tapas2014

Minera,

Thank you so, so much! You literally could be describing my husband there lol And great to know about rent - I thought it was dead money! Really feeling better/more positive now. Thanks again :-)

Minera

No problem but you have raised my interest in council mortgages- so i found this: http://www.citizensinformation.ie/en/housing/owning_a_home/help_with_buying_a_home/home_choice_loan.html

Good luck Tapas

Tapas2014

Yeah the home choice scheme isn't availed in my area.....don't know about yourself.....but some, if not all councils over mortgage loans too, to people who have been refused by banks. I'd never heard of it til last year, then started looking in to it, and as I said a friend actually recently got one with what seemed like a relatively straight forward application process. My local county council has info on their website, yours might too if you're interested :-)