Halifax mortgage - moving home

moochd

A very long term stalker of this website (l've learned alot about debt management - particularly from never-in-doubt). I've applied alot of the wisdom on these boards to help with my finances without ever needing to post. until now.....!

The reason for my post:

My and my wife bought our first home back in July 2005. I had a rather flippent view when it came to credit before I met my better half, but she has helped put me on the straight and narrow. Before we applied for the mortgage with Halifax (my wife has her bank a/c with them and an impeccable credit history, which is why i think they gave us a mortgage) I had a poor payment history, but no defaults. We applied for the mortgage in april 2005. We got the mortgage promise and as I mention above, we completed in July '05.

All fair enough so far....

However, in July/August 2005 the defaults came through (four in total!). I paid for these as and when my creditors caught up with me, each one eventually being settled and showing as such on my credit report (well, Experian at least - I've been in touch with the creditors who report to Equifax to ensure that this is done asap.....one debt that I paid back in 2005 is still showing as outstanding :eek:...they're quick enough to chase you for the money, rather less so than holding their side of the bargain, but thats another post altogether :mad:)

We are now looking to move home. We have seen a house that we are looking to offer £200,000.00 for. We expect to achieve £45,000.00 equity from our home, so allowing £5,000 for e/a and solicitor fees, we are looking for a mortgage of £160,000.00. We have an appointment with Halifax next thursday, but I am worried that my credit history will be a huge stumbling block.

We have never missed a payment with the Halifax (original mortgage was £87,000.00 on a property bought for £100,000.00), and as previously mentioned, I have made leaps and bounds in repairing my credit - to the point where I have obtained a credit card and contract mobile phone)

Does anyone else have any experience in this type of situation?

N.B My income is circa £20,000.00+ (ovetime & bonuses), my wife's is £27,000.00 (when we originally got the mortgage, mine was £15,000.00, wifes £17,000.00)

Taylo_2

Halifax rely on credit score, there are no hard and fast rules regarding defaults as such, essentially if you pass their score then happy days. If the defaults are historic, and cleared and they weren't too big then you stand a decent chance. Assuming you don't have too much in the way of outstanding commitments now as well then your income should be about ok from an affordability point of view (assuming you don't have two dozen kids as well) If they do an AIP for you then it is a soft foot print on your credit score as well so no harm in finding out.

SPOTTEDCUP

moochd
im in a same situation as you and have very recently spoken to the halifax
they seemed to only have a concern over an outstanding credit card balance and gave me two sets of fiqures one with c/c balance still oustanding
one with it payed off
big difference in what they offered me
hope this helps

moochd

Thanks for your replies.

Its true that credit cards really are the work of the devil then?! I presumed it would be a good thing to have a credit card to rack up those green zero's. Balance of card is just over £1k so will get this paid ASAP.