prev poor credit - chances of mortgage with big deposit?

tiredwithtwins

hi everyone,
wonder if someone could give me some advise please?
im 43 in a perm job (nhs staff nurse) for last 18 months, currently living with partner who is selp employed, and our 3 kids.
I previously had a very poor credit rating (long story but illness meant i couldnt work, but didnt use the insurance cover on several credit cards to help myself - ended up with several ccjs, all now paid off several years ago) and am down to the last £1k of a student loan. I applied for a credit card with the halifax (who we have banked with for about 20 years) but was turned down.
my partner had a previous mortgage that was in arrears but now paid off (ex wife has the mortgage now).
he has yearly accounts but business has been bad, so very low income. he does have a credit card, no late payments or arrears so all good there.
we would like to buy the house we are renting, valued at around £100k, and have around £15k in savings with that likely to go up to around £25k in the next 12 months.
what would our chances of getting a mortgage be? we have a bit of a patchy past but all good for the last couple of years, and would this sizable deposit go in our favour?
i know i need to get a copy of our credit ref files - i presume equifax and experian are still the 2 to check?
i also know that in the current economic climate we are skating on thin ice, but wondered if it would be worth applying or should we wait until our credit history is squeaky clean and we have a bigger deposit?

many thanks for reading, and thanks in advance for any advise,
sue :beer:

MortgageChallenge2011

Hi,

As you mentioned first off all get your Experian and Equifax credit reports - go for the £2 printed versions as you can use these if needed to show a broker. Here you can find what sort of credit problems might still be holding you back. CCJs drop off 6 years from when first registered but you need to check they have all been mark satisfied if paid.

Don't purchase their credit scores (about £6) - they are worthless as banks use their own credit scoring criterias.

Make sure as well you are on voters roll - the credit reports will show this if you are on.

I spoke to a mortgage broker on Friday and mentioned a default we had. He said that the larger the deposit the more the bank will turn a blind eye to it so the more you can save the better (min 25% for poor credit).

Best of luck!!

GMS

If the adverse credit was over 2 years ago you may have a chance with a 20% deposit.

When were the mortgage arrears for your partner? These may cause issues.

As mentioned get £2 statutory reports from Experian and Equifax. Show these to a broker.

With adverse credit it is important to apply to the correct lender, not just the cheapest. If an application is likely to be rejected then applying will lower credit score for the next one.

A good broker will be able to help you. Initial assessments should cost you nothing.

tiredwithtwins

thanks for your replies.
gms the mortgage arrears were from about 15 years ago - the mortgage and debts attached to it were included in the whole thing being signed over to the exwife about 10ish years ago - his association with the mortgage and debts ended there.
thanks again
sue

GMS

Arrears from that long ago will not cause an issue. Last 12 months are main concern, a few lenders want none in last 36 months maximum.

Get credit reports to a broker and see what is available. May be options available now.

Keep saving too as more deposit will open more doors.

Good luck