trying to get a mortgage/few historic credit problems.

groovysuzie

me and my husband are looking to apply for an agreement in principle next week with abbey, we have 10% deposit for the house we are interested in.

My husbands credit score on experian/credit expert is excellent(960). mine however is satisfactory (863) because

1. i have a default for £156 (satisfied) with next from August 2005 which they have refused to remove despite the fact that they cannot prove that they filed notice to file default

2. i have lots of missed credit card payments in 2004/2005 with mbna (which are valid) my account also shows missed payments in 2007 (which is disputed ). I went into branch and paid off my credit card and cancelled my direct debit. Then the bank tried to collect my direct debit in 2007 (even though i had cleared my balance) charged me £12 then continued to charge interest on the £12 and marked my credit file with three missed payments. i am in correspondence with mbna about this and it is going to take time to resolve.

I took out a capital one card 9 months ago and have been paying in full and the rest of my credit history is good. i have been on the electoral role for 2.5 years have no debts and earn good money as does my husband.

Our mortgage broker seems to think we will get accepted but i have my doubts, does anyone have any knowledge with abbey and whether they are likely to accept. i dont want to go for a sub prime mortgage!

many thanks

PNPSUKNET

Dont think abbey will as they are strict, you are subprime with a default.

beanielou

Next default will fall off your credit file in Aug 2011.
Would you be able to wait til then so that you only have one lender showing a poor history rather than two?Your mortgage broker should know the market but I think you will struggle with Abbey to be honest.

oopsadaisydoddle

Hi,

We've just got a mortgage but our broker steered us away from Abbey as I have a default and our broker told us they were strict. My default has just rolled off my credit file but was still on at the time of application approx 8 weeks ago and we managed to get a mortgage with Newcastle Building Society on a better rate (not sub prime) than we would've got with Halifax who we bank with (who declined us but that's another story).

You may still be ok with not having to get a sub prime rate as some lenders don't look at some things over 3 yrs old (e.g Newcastle said they disregarded settled defaults older than 3 yrs) but anything that's not settled may go against you. The fact you have the late payments as well may be a bit more of a hindrance too - my default was the only adverse thing on my file - the rest of it showing my current acc and credit cards all up to date and paid in full every month so I think that may've helped me.

Sorry for waffling, just wanted to say although I wouldn't've thought Abbey would've been a good choice, I'm not an expert. And even if you don't have success with them, you may still have other options.

Good Luck.

groovysuzie

thanks guys, and oopsy daisy, just out of interest how much deposit did you have with Newcastle?