Getting a mortgage in the current climate, how easy?

redmen9

Hi, just wondering if anyone has any ideas as to the difficulties people are facing getting mortgages at the moment. I am fortunate in that I have a large deposit to put down which would hopefully be 40-50% of the loan value.

My problem is that I did a credit check recently and noticed that I had three late payment strikes against my name on a credit card that I've paid off (I stupidly cancelled the Direct Debit online as I thought the DD instruction on my online banking account was for a previous credit card account that I had long since paid off).

My worry is that this 'stain' on my credit history might affect my ability to get a mortgage in the near future, despite having a sizeable deposit to put down.

Has anyone had similar experiences lately trying to obtain a mortgage?

Any advice/thoughts would be greatly appreciated.

herbiesjp

It may cause a problem with some lenders - depends on how recent this was.

However the deposit you have will help a lot.

You may want to run your credit file past a whole of market adviser to see what tehy think of the credit file, and to see if they can run verbally past lenders to see what they think

wildcardsa

hey there redman...

Very lucky to be in such a predicament with such a large deposit.
With reference to your credit file check - have you thought of putting a note on your fiile to explain it?

I did it a year ago to explain the amount of addresses I was linked to. (due to living with various family memmbers, and moving around with jobs,etc

If you become a member of EXPERIAN on their 30 day free trial.
you can see a full copy of your Credit File and add notes to help explain away the reasons.
Anyone doing a credit check will also see the reasons and it may help.

Then dont forget to cancel the account within the free 30 day trial and the notes are left on tehre and you dont pay a penny!

Mind you, with the current mortgage market - I reckon that cash is king and they wont even question your history, but ratehr get their hands on your deposit.

good luck.....

getmore4less

What is the salary multiple for the amount you are looking to borrow.

Are the late payments the only credit on record or are there others that are all OK.

If multiple are good an other credit in good order with this LTV there should be a lona out there.

3 late payments though indicate more than just an admin error on your part, should have been sorted after the first payment was late.

redmen9

getmore4less wrote: »

What is the salary multiple for the amount you are looking to borrow.

Are the late payments the only credit on record or are there others that are all OK.

If multiple are good an other credit in good order with this LTV there should be a lona out there.

3 late payments though indicate more than just an admin error on your part, should have been sorted after the first payment was late.

I'd probably be looking at 3 x joint salary tops.

In regards of the late payments, yep I was stupid, I accidentally cancelled the DD as I thought it was an old instruction for a long paid off credit card. I phoned the CC company, explained my problem, they said they'd re-set the DD, the following month the payment was late again. I phoned again, they claimed that they had set the DD, said the problem was with my bank. Phoned my bank, they said the DD was set up and that the CC wasn't taking payment.....this lead on to the third late payment!

I did get a refund of the late payment fees for one so they admitted they were responsible. I paid off the balance in full shortly after that. That's the worst part, it's not like I was having difficulty with payments, just carelessness and this could impact on me buying my next home!