Any mortgage advisors?

[sunjue100]

Hi

Our DS at the grand old age of 27 has decided he wants to buy an apartment. He has a 10% deposit but still lives at home and hasn’t had any form of credit before. He works in the NHS and has been for the last 3 and a bit years. I’m just wondering whether his lack of any previous credit will affect his ability to get a mortgage.

TIA

[Blue nose]

Does he have a contract mobile phone? That's credit. Or car insurance paid monthly?
Is he registered to vote?

Mortgages used to be the easier credit to get as it's secured on your property so less risk.

Hopefully someone with more knowledge will be along to help.

[sunjue100]

No. His phone is on my contract , he’s registered to vote and we’ve lived here 20 years so he will have been on the electoral roll since 18 at this address.

[lizzie145]

They look at affordability these days so they want to see bank statements

[Leggibone]

My sister applied for a CC with her bank, then they are on track to get their mortgage a few months later (as in they have all the offers ect. Now) get him to get a CC now, and start using it responsibly and paying it back

[400ixl]

Biggest challenge may be only having a 10% deposit as we have gone from over 270 in March to under 60 mortgage offerings that will do a 90% LTV.

I assume that this is all his money and you are not loaning / gifting anything towards that as it also makes it more complicated as to who will make an offer.

You really need to go and speak to an independent financial adviser that specialises in mortgages.

[GoldenAvalanche]

I would get him to check his credit report. He might struggle with a 10% deposit, 90% LTV mortgages whilst still available are tricky to get a hold of as there are only about 60 products available (700s prior to lockdown) and many lenders are restricting how many they lend. Our buyer had a 10% deposit but had to increase to 15% to get a mortgage.

[123]

Originally Posted by Leggibone

My sister applied for a CC with her bank, then they are on track to get their mortgage a few months later (as in they have all the offers ect. Now) get him to get a CC now, and start using it responsibly and paying it back

See more...

In the OPs situation I certainly wouldn't be doing this unless they aren't planning to buy in the next 6-12 months.

The lender will see they only have a 10% deposit and they have just applied for additional credit and mark them down for it.

Having a card and a credit history is a good thing when applying for a mortgage but not if you do it just before taking out a mortgage. You want your credit file as "stable" as possible just before you apply for your mortgage

[Guest]

Originally Posted by sunjue100

Hi

Our DS at the grand old age of 27 has decided he wants to buy an apartment. He has a 10% deposit but still lives at home and hasn’t had any form of credit before. He works in the NHS and has been for the last 3 and a bit years. I’m just wondering whether his lack of any previous credit will affect his ability to get a mortgage.

TIA

See more...

Mortgage decisions place little reliance on credit checks. Credit checks are of more relevance when the debt is to be unsecured. Mortgage providers are more interested in ability to pay, his 3.5 years of continuous employment will be a plus. The 10% deposit could limit the options quite a lot though.

(not a mortgage advisor but some general financial services knowledge through work).

[sunjue100]

Thanks all we can probably push the deposit to 15% will look for a financial advisor have a decision in principle certificate but appreciate this is no guarantee of a mortgage