Chances of a mortgage after a DRO?

Danny026

Hi everyone

Me and my partner are First Time Buyers looking to get on the property ladder currently private renting, any information regarding our issue would be greatly appreciated.

We have seen a few brokers and they all seem to agree, that they can get us a deal for the amount we need with our CURRENT income and expenditure. At the moment this is still subject to credit checks and were the worry comes.

As mentioned there is an issue, my partner had debts of approx £10,000 which she could not afford from a previous relationship. She was cleared of those debts in April 2011 via a DRO (Debt Relief Order).

She has paid for a credit check and it all shows green except for the bank she owed money to (approx £4000) she has been in touch with them and they said they will look into updating their records and call us back next week. (I am aware legally they do not have to do this)

I earn £18,000 a year (full time) I do receive commission but as this can vary substantially (£150-£500) I do not really want to factor this into account (I have a very good credit history according to my bank). My partner earns just over £8000 a year (part time)

When approaching brokers/banks etc we have been looking at borrowing 85% on a purchase price of £100,000 as this fits in our budget nicely and will not overstretch our monthly outgoings. To make up the other 15% I have a deposit of £15,000 (apologies as this is obvious, I just want to make sure you know everything) which I have managed to save.

Now you know the facts, my question is before we try and get an offer in principal I would like any information you can offer because as I understand it, if we fail on our mortgage application that will then go on both our credit files and effect the credit history further.

Firstly, is this correct?

Secondly, realistically what are the chances of even getting a mortgage with my partner's history?

Thirdly, I guess this will be answered by the above two reply's but should I look at trying to get a mortgage just on my own?

Any advice you have would be greatly appreciated as we have seen a house we are interested in which is in budget and we have also found a mortgage we also like the repayments for and the next step of getting this agreed in principal (credit checks etc) has my stomach in knots and could destroy our dreams of owning our own home.

Many thanks in advance

Dan