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Advice on Halifax mortgage and defaults
johnthebar
Posts: 71 Forumite
I hope the knowledgeable people on here have some advice on my query. I am currently looking to buy a house and am hoping that I will have an offer accepted any day now. I have an AiP with Halifax, but Looking at my credit file I’m not sure how successful my full application will be
My figures:
I want to buy a house at 250k
I have a deposit of 65k (26%)
I am looking to borrow 185k and my salary is 41k, so 4.5 x my salary
Halifax have offered to lend me just under 5 times my salary. They did an initial soft credit check on me and said the score wasn’t great, but it would be OK for a full application.
Now I wasn’t great with money in the past and defaulted on a credit card a few years ago. I have just looked at my credit file to see what exactly what’s on there. Everything is fine apart from that default and another surprise default from a mail order company. All my current commitments are up to date and there are no missed payments on those, the only blemishes are these defaults.
The defaults are:
Mail Order Co - £18 defaulted Sept 06, Settled Oct 06
Credit Card – £990 Defaulted March 07, Settled April 07
The credit card default was actually in 2004 and for about £700, but the repayment plan was finished in April 07 and seems to have been added on afterwards. I haven’t got a clue what the £18 is for though and I’m going to try and find out and hopefully get it removed.
My issue is that with tight lending at the moment is it advisable to carry out a full application with Halifax? I know my deposit might help with the decision, but those defaults could be an excuse not to lend and I don’t want a declined application going on my file and having to try and find another mortgage with that on there.
From my figures and any knowledge about Halifax’s lending policies does anyone think that another lender may be more suitable for my mortgage given my credit record? The 4.5 multiplier on salary looks high, but the Halifax quote for a 5 year fix at 4.54% comes in at around the same as the monthly rent that I have been paying for the last 6 years so it is affordable for me.
Thanks in advance for any advice
My figures:
I want to buy a house at 250k
I have a deposit of 65k (26%)
I am looking to borrow 185k and my salary is 41k, so 4.5 x my salary
Halifax have offered to lend me just under 5 times my salary. They did an initial soft credit check on me and said the score wasn’t great, but it would be OK for a full application.
Now I wasn’t great with money in the past and defaulted on a credit card a few years ago. I have just looked at my credit file to see what exactly what’s on there. Everything is fine apart from that default and another surprise default from a mail order company. All my current commitments are up to date and there are no missed payments on those, the only blemishes are these defaults.
The defaults are:
Mail Order Co - £18 defaulted Sept 06, Settled Oct 06
Credit Card – £990 Defaulted March 07, Settled April 07
The credit card default was actually in 2004 and for about £700, but the repayment plan was finished in April 07 and seems to have been added on afterwards. I haven’t got a clue what the £18 is for though and I’m going to try and find out and hopefully get it removed.
My issue is that with tight lending at the moment is it advisable to carry out a full application with Halifax? I know my deposit might help with the decision, but those defaults could be an excuse not to lend and I don’t want a declined application going on my file and having to try and find another mortgage with that on there.
From my figures and any knowledge about Halifax’s lending policies does anyone think that another lender may be more suitable for my mortgage given my credit record? The 4.5 multiplier on salary looks high, but the Halifax quote for a 5 year fix at 4.54% comes in at around the same as the monthly rent that I have been paying for the last 6 years so it is affordable for me.
Thanks in advance for any advice
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