First time buyer - viable? SeduLOUs

#1
Going it alone and not sure where to start! I feel like it's possible for me to get a reasonable mortgage but I'm not convinced and hoping to be reassured.



Salary £27,000, full time employed 7 years. Deposit £50,000 (gift) and I have around £5k of my own for fees etc. Looking to borrow £50-70k.



Currently have ~£10k credit card debt, all at 0% for another 2 years (minimum payment ~£200/m). I can probably reduce this to £7,500 in the next few months but as I'm earning interest on the money I'm setting to one side to pay it off I'm not in any rush to clear it before I need to. I also realise I could clear it in full and have a smaller deposit, but practically it would be daft to roll up 0% manageable debt into a mortgage, however I would be willing to if it means the difference between getting a mortgage and not getting one.



I also have an old default on file from 2011 (settled 2012) which is due to fall off in June this year. No missed payments in last 3 years, no payday loans ever.



Credit scores show as poor - I know the scores themselves are meaningless, but they do act as a guideline - I suspect they are deemed poor because of my debt/income ratio and the default. My credit limits are high and my utilisation is currently around 40%.



Affordability OK. No contractual obligations for mobile phones/gyms etc, and ~£400/m spare after all outgoings and minimum payments on CCs (currently the spare is being saved to clear the debt and/or to generate more deposit depending on how I play it).



Plan is to wait until June (for default to disappear) to look at getting a decision via a broker. With the age of default is this the best course of action or is it unlikely to make much difference now?



Is it worth speaking to a broker yet or waiting until June? What are my hopes of getting a sensible rate mortgage now or in a few months? How do I find a decent broker (Google searches of my area seem to bring up one man bands without websites or estate agents and I don't know who to contact)?



Thanks for any help/advice.

#2
If you can not get a Mortgage now at normal rates (based on what you have said - which is my get out of jail free card) I would be very surprised!



That default, unless it is on a previous mortgage is nothing to worry about in the main...Some lenders may not accept it, but there should be more than enough options.



Most decent brokers are small local firms. In general you get better service from small local companies who will get to know you as an individual rather than a national company where you are just a number in a call centre. General consensus is to avoid estate agent based brokers, but I suppose it is unfair to tar them all with the same brush.



Dont worry, you will be fine.

#3
Thanks so much for making me feel a little less terrified!



The default was on a credit card, I've never had a mortgage yet.



Re the CC debt, does that mean it should be a non-issue and really I should just leave it alone for the time being (apart from minimum payments obviously) and throw as much cash as I can at the deposit?

#4
It should stack up from an affordability point of view and there are lenders who are not too fussed about debt so long as it fits. Again, it wont be for every lender but it should not stop you getting a mortgage at normal rates.

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