FTB Mortgage Application - help?

Pobble

Hi

I hope you can help my confused message about my first time mortgage application

My husband and I have put in an application for our mortgage and are just waiting for the valuation to be completed. It is the first time we have looked into house buying and are nervous

We are hoping to buy a new house and have been given a 5% builders discount. Luckily we also have been given a large-ish deposit of £30,000 to also put down. We have opted for a fixed rate non-first time buyer mortgage as the rate was much better.

So, we are looking at a mortgage of £120,000 aprox 80% of value. The mortgage we applied for takes upto 95% ltv.

I am the principle applicant but 5 years ago I had some credit problems as an overhang of my student days. My equifax is "very good" and is 7 points off being excellent.

My main question being - will 5 years ago have any major impact? My problems were late credit card payments and agreement to pay back the amount on standing order. I had one month in arrears with a loan also 5 years ago. I have subsequently had several in my name since then that have also been paid back and have several credit cards which are always paid in full each month.

Help or reasurrance would be really appreciated :-)

Pobble :j

Ian_W

Hi Pobble & welcome,
I wouldn't have thought your past probs would be a problem now. They're sufficently distant and fairly minor in nature to be reflected in your credit score as very good bordering excellent. In addition the fact that you're able to put down a large deposit so that the LTV is 80% should mean the lender is more tollerent in their underwriting than if, for example, you were borrowing 95%.

Hopefully one of the friendly brokers who post on the threads will be along to confirm my optimism shortly. Might be an idea to name the lender as they all do have different policies, though if you applied through a broker they should have considered your credit history in advising which lender to use.

Pobble

Hi Ian


Thanks that was really useful and reassuring.

We applied direct to the lender which is, Saffron Walden Herts and Essex Building Society, which seemed to be competitive in its rates and local and helpful.

Scary this first time buyers lark :rolleyes:

Pobble