Ask the experts
About our experts...
At John Charcol, we are constantly asked for advice by borrowers on what they should do when it comes to mortgages. As such, we created this section so that you can submit your questions to our experts. The answers are provided by a number of people who have years of experience in the mortgage market. The team is led by Peter Woodward who spent his formative years as an underwriter with one of the major UK lenders and the last 10 years in our Technical Department along side Ray.
So please do submit your question and we will do all we can to answer it as quickly as possible
Please be aware that these answers can only be generic and no personal recommendations can be made.
Posted on 03/06/2010
My wife and I are first time buyers earning £58k and £19k and looking at a new build house at £235k. We have, at a push, £48k to use as a deposit.
Now the bad bit. I have 2 defaults on my credit report from Feb 2007 and both defaulted accounts were settled in full in Apr 2009. Is there any possibility of getting a mortgage on this property?
As an alternative there is a property on the same development at £199k. Would this be more of a possibility to achieve, albeit I would be less inclined to gather the same size deposit?
Categories: Bad credit, New build
Posted on 12/02/2009
Me and my partner have just been turned down by the halifax for a mortgage die to our credit score, we are existing mortgage customers with the halifax. We are looking to buy a new build property for £164,995 and have a 20% deposit. Are credit scores are 823 and 999 and basic salarys are £25k and £16k with bonus of approx £13k. We are concerned that if we try another lender and we also fail there credit rating it could make our scores worse and ultimatley we wont be able to get any mortgage and we would lose the £500 deposit we have paid to the developers.
Would really appreciate advice of where to go from here.
Thanks Jon
You are right to be concerned about the impact on your credit score of making multiple mortgage applications. Furthermore, many lenders have a lower maximum loan to value (LTV) for new build properties than their normal maximum. This is a much greater problem with flats than with houses. An additional problem is that most lenders, including Halifax, are very restrictive on any mortgage above 75% LTV.
However, from the basic information you have provided I think a mortgage of the size you want should be available to you, providing you are buying a house and not a flat. I suggest you call us on 0800 71 81 91 so that we can take some more details and advise you accordingly.
Categories: New build
Posted on 28/03/2008
Hello Katie, I own a property worth about £80,000 with £14,000 owing. I want to buy a new one at £179,995 with 5% deposit paid by the builder. Would it be sensible to turn my current mortgage into a buy to let, taking £16,000 equity thus leaving £50,000 in the property. Then put £30,000 into the new one so I would need a mortgage of £140,000. I earn £36,000. I was thinking of getting the new one on interest only, for two years, so I could manage the payments, then sell the old property and put the £50,000 into the new one leaving £90,000 to pay and convert it to a repayment. I only have 15 years until retirement and will have about £40,000 lump sum. Is this a realistic way to get the property I want or am I being silly?
Categories: New build
Posted on 26/09/2007
My wife and me are currently building a second home which we intend to let out to her parents. My wife is 51 and I am 57, both intend retiring at 65. Our current property mortgage finishes in March 2008 and the property is worth around 200K. We have sufficient capital to build our second home but would like to secure some of our capital later on and take a 50K mortgage on my wifes income, around 18K. My income is around 50K what would be the best advice/mortgage for us to take?
Categories: New build, Raising capital out of property
Posted on 04/09/2007
Dear Katie...My daughter and her partner, ages 35 and 37 respectively, own an immaculate end-of-terrace home in a slow-moving area but are anxious that their aspirations seem to be sliding fast away. They wish to...
Categories: Lower mortgage payments, New build, Tax issues, Valuations, Freehold, leases & unusual property
Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not neccessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.
We recommend you seek professional advice with regard to any of these topics where appropriate.