FTB help please!

dcm3283

Hello

I need some advice please. Myself and my gf have been turned down for a mortgage twice this year due to my poor credit history. I have 3 settled defaults on my file from when I was younger at uni, I have no outstanding debt with an ok paid and secure job. I haven't missed any payments etc for over 2 years and worked very hard to sort myself out My credit score is 900. She has a perfect score of 999 and no bad history at all! We are looking at a house for about £135k and a deposit of £21k (15%) we have been turned down by Santander and nationwide who said they'd only be able to help if we had 25% deposit which will take us a while to save. My question is her parents have very kindly said they're willing to help. Try have already given us a fair bit of cash towards the deposit but we are going to look at the possibility of them acting as guarantor for us that would enable is to get somewhere? Does anyone think this is possible even with my bad history? Her parents are mortgage free and both have full time jobs on good money so I dont think there is any problem there just not sure if with my record it's a waste of time?

Any advice greatly received!!

Cheers

herbiesjp

Acting as guarantors on your mortgage application will not improve your credit score.

Guarantors only help when there is a shortfall of income.

If they can raise the fund from their property and gift to you that may be an option.

Otherwise get in contact with a good whole of market broker - applying to lenders and have credit searches run against you, only to be declined, can harm your chances.

Have you got up to date copies of your credit files?

What are your incomes?

There may be lenders that could help, but it will depend on the details of the adverse credit i.e. amounts, dates first registered, dates satisfied.

GMS

dcm3283 wrote: »

Hello

I need some advice please. Myself and my gf have been turned down for a mortgage twice this year due to my poor credit history. I have 3 settled defaults on my file from when I was younger at uni, I have no outstanding debt with an ok paid and secure job. I haven't missed any payments etc for over 2 years and worked very hard to sort myself out My credit score is 900. She has a perfect score of 999 and no bad history at all! We are looking at a house for about £135k and a deposit of £21k (15%) we have been turned down by Santander and nationwide who said they'd only be able to help if we had 25% deposit which will take us a while to save. My question is her parents have very kindly said they're willing to help. Try have already given us a fair bit of cash towards the deposit but we are going to look at the possibility of them acting as guarantor for us that would enable is to get somewhere? Does anyone think this is possible even with my bad history? Her parents are mortgage free and both have full time jobs on good money so I dont think there is any problem there just not sure if with my record it's a waste of time?

Any advice greatly received!!

Cheers

When were the defaults registered?
What were the amounts?
When were they satisfied?
What are your incomes?

Are you sure the declines have been due to the adverse credit? Could it have been down to affordability?

dcm3283

Thanks for replying.

I had 3 defaults in total, the final one, which was the biggest for 1800 was finally settled at the start of sept this year. The other 2 were for lower amounts and were settled over 18 months ago. I have checked with experian and I have a deafult dropping off my file for the next 3 years. I have seen my upto date credit score and that is all fine. I have ben liasing with credit expert etc and included past addresses on there to make sure everything is as good as possible. As of 2 weeks ago my score was 900. My gf has also checked her's and her's is fine with a score of 999.

Our incomes are:

Mine: 18500
GF: 16750

The only credit I have is a £200 CC that i use for expenses at work and gets paid in full every month. My GF has a car on finance that she pays £160 p/month and has exactly 1 year left to pay, never missing a payment etc.

We have been using an independent whole of the market broker since april who has been trying with us. He tried Santander in May, which was declined and Nationwide early this month which again was declined. Nationwide said they would be willing to lend to us but only if we had a 25% deposit, not 15 like we have got.

This is why we are looking at other options. We know that my adverse credit is probably the major factor. The other option rather than guarantor is that my gf gets a joint mortgage with her mum for the initial 3 years and then hopefully when time to re-mortgage, i'll be in a position to get somewhere?

The broker we are liasing with did suggest trying the Kensington who specialise in mortgages for people with adverse credit etc but i've been doing some reading about them online and not read good things to be honest so not sure about them?

Anyone any suggestions!?

herbiesjp

I can't understand why your broker has gone to Santander and Nationwide - IMO they have been a waste of time as based on what you have posted, they were not likely to accept your application.

You have not stated the dates the defaults were registered, so difficult to say whether or not Kensington will accept.

You may have other options along with Kensington, but I'd hope your broker will look at these for you as well.

GMS

Ignore everything you can find about Kensington. They are a completely different company today than they were when they operated as a sub prime lender.

Also keep in mind you will only ever read reviews from people who are compalining about charges or repossession which only occur when payments are not maintained.
Not many reviews saying 'I love my mortgage company, they take my payments each month and we get along just fine'

Kensington will not loan 85%.

Speak to your broker. They should be able to guide you. If you are unhappy tell them or find another.

Good luck

dcm3283

thanks for the reply.

my default details as follows:

No 1: Defaulted 08/2005 Settled 07/2008 Amount £78
No 2: Defaulted 07/2006 Settled 02/2008 Amount £799
No 3: Defaulted 02/2007 Settled 09/2010 Amount £2635

The broker that we have seen hasn't really filled us with confidence and we are looking for another but he said he has managed to get apps through before with applicants similar to ours?

firstaspect

If you're with an independant whole of market mortgage broker they should be doing the looking around for you right? That's what they are there for and they should be finding the lenders who may be willing to lend to you.

TrickyDicky

Also - stop wasting money on numbers from equifax and experian. They are meaningless to any company other than experian and equifax and are just a method to moneties your report (that you can get hold of for a statutary £2). Companies have their own criteria to generate their own scores.

herbiesjp

With default number 3 in particular there was no way Santander or Nationwide were going to do this.

If you have no confidence in your broker, you should find another one really. Whilst they may have had the best intentions in placing with high street lenders for better rates, by caring out credit searches with those two, it could make it more difficult with other lenders.

dcm3283

yes you're right and this one that was recommended by a local estate agents has not been good at all! and he charged us £90 for the privilage! he has been very impersonal and hasn't seem very intrested in helping us. After our appointment at the Britannia this weekend we are going to seek another independent broker who will hopefully be of use!