Can I increase my chances of having a mortgage accepted?

Katieprecious

Hello All, if anyone could help it would be greatly appreciated.
Yesterday I had my offer accepted on a repossession property so I now need to acquire a mortgage. I've seen one I'm really interested in, (its 4.99% fixed for 2 years with HSBC with 90%Ltv) I just want to ensure I'm giving myself the best possible chance to be accepted.

I applied for a mortgage in August and had been declined by a couple of lenders as neither myself or my partner had any credit history. (I'd never thought I'd need a credit card or loans ect...) But I've now had 3 months worth of credit card history which I pay off in full as a direct debit payment monthly. (As does my partner) will this give us an ok credit history? Or is it still to short a period of time? Should I wait until my 3rd direct debit has been taken (friday) before I apply for the mortgage?

Any help would be greatly appreciated

[Deleted User]

You still don't have much of a history. Although it's better than none.

You would be best off speaking to a broker to go through income, deposit etc as well as your credit history. He would be better placed to advise which, if any, lender would be likely to accept you. Thought I feel your chances are probably still slim.

Generally, its better to arrange a mortgage in principle before putting an offer on a property, so you know where you stand and what you can afford to pay.

Cannon_Fodder

Deleted_User wrote: »

Generally, its better to arrange a mortgage in principle before putting an offer on a property, so you know where you stand and what you can afford to pay.

Especially when buying a repo, when you will be given 28 days to complete.

HSBC are amongst the pickiest lenders and not very quick either...good luck with the combination of factors you have going against you.

hshen

How much have you got on your credit card? A large sum is favourable.
But given you only had it for 3 month I'm guessing not very large.

Get ready for disappointment at 90% LTV, or be willing to pay a higher interest rate.

Also it takes a while for your monthly statement to show up in credit report.

Conrad

There are dozens of items that affect score, such as for example giving landline home and work numbers.

90% borrowing is unlikely to be possible if you have limited credit history.

firstaspect

Your best bet would be to speak to a local 'whole of market' mortgage broker/advisor who will be able to go through your situation in detail and recommend lenders who may be able to help you.

Katieprecious

Hi All, thanks for your comments, I've ended up going with Post Office Mortgages had my application approved by an underwriter today, they're sending out the welcome pack and will arrange to do the valuation. I have my fingers crossed this will all go well, I'm just worried about the time it will take now as we are supposed to exchange contracts on 5th Jan!