Mortgages and Credit Score

paint

I have a credit score of 775 with equifax and 735 with call credit.

The relatively poor score is largely due to two consecutive missed credit card payments within the last 6 months (thought a direct debit was set up to pay them... but apparently not!). This was paid in full last month (it was around £250).

I have never otherwise missed a credit card or loan payment, and I have no outstanding debt (loans, credit cards, finance etc.).

I want to apply for a mortgage this week.

A recent mortgage in principle application was neither approved, nor disapproved (was told to make a full app). I should also mention that I am self employed (albeit with guaranteed income until the end of the year), with 4 years accounts, and have a 40% deposit.

Am I b*ggered for a mortgage?

GMS

What percentage loan are you looking for?

Ignore credit scores from Experian and Equifax. If they decide to become lenders then there may be some relevance in it but as they are not at present then ignore and do not pay for the score.

Missing 1 payment for a non direct debit may be seen as a mistake but 2? Why did you not rectify after the first? Did you receive notification?

paint

GMS wrote: »

What percentage loan are you looking for?

Ignore credit scores from Experian and Equifax. If they decide to become lenders then there may be some relevance in it but as they are not at present then ignore and do not pay for the score.

Missing 1 payment for a non direct debit may be seen as a mistake but 2? Why did you not rectify after the first? Did you receive notification?

Hi GMS, I have a 40% deposit so am looking for 60%.

I received a notification to my home address, but I work away from home and missed it until I returned. My fault entirely, I fully appreciate.

GMS

paint wrote: »

Hi GMS, I have a 40% deposit so am looking for 60%.

I received a notification to my home address, but I work away from home and missed it until I returned. My fault entirely, I fully appreciate.

At 60% assuming no other issues and affordability proven then there should be options for you.

Do not miss any more payments and speak to a broker.

paint

Thanks, GMS, I will speak to a broker as you suggest.

Just speculating (it's late at night and minds tend to wonder!), if the 'worst case scenario' were to arise and I'm rejected for a mortgage from a mainstream lender, what are the options these days?

If any!

GMS

There are 'specialist prime' or 'near prime' lenders out there now. These are aimed at clients who fail mainstream lender credit score.

Rates are not too far away from the mainstream lenders.

With a 40% deposit ans very minor credit blips you are not in as bad a position as you think.

Conrad

paint- you may need a specialist lender if your income (net profit) is relatively low, which is often the case with self employed sole traders. Beware inputting income figures into any application unless the broker really knows what they are doing. Remember if your'e net profit is £18k, but your turnover is £50k, most lenders will only use the £18k.

paint

GMS wrote: »

There are 'specialist prime' or 'near prime' lenders out there now. These are aimed at clients who fail mainstream lender credit score.

Rates are not too far away from the mainstream lenders.

With a 40% deposit ans very minor credit blips you are not in as bad a position as you think.

Thanks for the reassurance. I spoke to a broker, who spoke to the underwriter for the mortgage company I'm applying to, and the noises coming back were moderately positive. The application has been submitted, so I'll have to wait and see! I might have to drop you a PM for the name of one of these specialist lenders, depending on the outcome!

Apparently the credit check is the very last step in the underwriting process for this provider (Clydesdale Bank) ... and it might take 4 weeks to go through. Eeek. Oh well, nothing I can do now.

Conrad wrote:

you may need a specialist lender if your income (net profit) is relatively low, which is often the case with self employed sole traders. Beware inputting income figures into any application unless the broker really knows what they are doing. Remember if your'e net profit is £18k, but your turnover is £50k, most lenders will only use the £18k.

Thanks, for the heads-up Conrad. I spoke initially to First Direct, who were surprisingy well-informed about self-employed / contractor circumstances. Given my slightly dodgy credit score and recent history, though, I've gone through a specialist Contractor broker rather than direct with a lender.