Mortgage Advice

PerpetuallySkint

Hi,

My partner and i are currently saving for a mortgage. by the time we come to buy ( hopefully 8 months from now) we should have £30k deposit.

my worries are due to my adverse credit in the past, i will be refused. my partners credit is impecable, and she has worked in the same job for 19 years. our plans depend on our joint application as my salary is high. i recently discovered i still had outstanding debts with 2 creditors and i am negosiating a deal with both to try and remove the defaults in return for full and final payment.

my current scores with the 3 major CRA's as of today are:

Equifax- 305
call credit - 569
experian - 900

as i mentioned all outstanding debits will be settled this month, default removed or not. We have very little outgoings other than usual family commitments - eg , car, rent, 1 credit card each, utility bills etc. joint salaries are circa £75k gross

is 7-8 months long enough to bring my scores up enough to be considered for a mortgage?

any advice is welcome, and thanks in advance

one last thing. is there a list of which particular CRA each mortgage lender uses? my score with experian is far better than with the other 2.

thanks again

herbiesjp

When were each of the defaults registered and for how much?

PerpetuallySkint

one of the defaults was registered in nov 2006, for £108
and the other in feb 2008 for £645.

herbiesjp

The defaults will cause problems with most lenders.

The are a handful that could look at this providing the LTV (loan to value) is low enough - what purchase prices would you be looking at?

PerpetuallySkint

It all depends really. we're looking around the circa 220k mark. we are both FTB.

depending on how things go, id like to ad 10k to that deposit in the same time giving us 40k deposit.

These debts were from a particularly turbulant time in my life, and are far behind me in a non credit based term. myself and my partner never miss a payment on anything these days and all accounts are paid in full.

i rue the day i was so blas! about my finances. im now at a stage in my life when all i want to do is move forwards.

PerpetuallySkint

another question i have...

i currently have 3 or so active credit accounts all in good order with no late payments in the last year, and never a payment more than a month late.

there is also a satisfied default from 2007. so presuming i cannot negotiate the removal of the other defaults i reffer to, and they too say satisfied, is it unlikely i would get a high street mortgage and be considered sub prime?

that would be 3 defaults on my file... all satisfied of course.

herbiesjp

I doubt the high street would look at your mortgage with 3 defaults.

You would probably need 20% or 25% deposit though to get this agreed.

PerpetuallySkint

i guess the situation all depends on what these 2 creditors have to say.
from my salary, even if we didnt spend a penny, i doubt i could raise the extra capitol in the time frame i had in mind.

are there lenders still operating in the market that would consider someone in my sitiation with ~18% deposit?

if so, what is the likely rate of interest to be

herbiesjp

If you are that close to a 20% deposit, I'd suggest getting a slightly lower priced property, so that you would fit criteria.

The rates are not that bad to be honest from high 4%s upwards - fees can be a bit steep on some options though (as they can be with all mortgages)

PerpetuallySkint

20% of the LTV would be 44k. i'll have to play it by ear when it comes to this. the property we have seen is part of a new development, however, im sure there would be properties in the area we like for less.

perhaps a silly question, but would it matter that my partner has a perfect credit history? or that , up to the point we apply, all our accounts will be paid in full?

we have no debts other than hp on a car. credit cards are clear.

sorry if my questions are repetative.

PerpetuallySkint

when myself and my partner come to apply for a mortgage, is it possible to know which CRA each uses? as ive listed above, i have a far better score with experian that any other.