First Time Buyers - One Poor History - 20k Deposit

JobRatch

Hello there,

Thanks for your time and advice if given.

Myself and my partner have recently applied for a mortgage and were turned down because of my partners credit history.

She missed two payments 4 years ago both roughly around the £300 mark, both have been paid off however but still remain on her history and will do so for another 2 years we've been told.

My credit history is excellent but I don't have much of it. I've gotten a TV on credit paid fully and currently have a credit card which is paid off in full every month.

Joint yearly income is 45k before deductions, both in long term employment.

We have 20k saved as a deposit and are looking at houses in the 100k region so have a good 20% deposit.

Should we give up and keep saving for another 2 years? Would you recommend booking an appointement with a broker to see if they can help?

I don't want to keep applying incase we get turned down again which will make her credit history worse and it won't help me in the process.

Any help and information is greatly appreciated.

We really want to get our own house soon so we can start a family.

dragon47

If your salery on it's own is is large enough to borrow 80K, I'd apply for the mortgage in your name only.

casualwalks

Go see a broker, my partner's credit history was much worse, and we received a 90LTV mortgage with the Abbey.

GMS

Get copies of your credit reports from Experian, Equifax and Call Credit. Pay £2 for the statutory ones rather than go for the free trial which can be difficult to cancel.

Speak to a broker. If the only issue is a couple of missed payments 4 years ago then you may be ok. Check there is nothing incorrect on your credit reports.

Who declined you?

JobRatch

Cheers for all your advice folks. To follow up,

I earn 17000 myself and my partner earns 28000 so unless I could borrow 80k earning 17k this is out of the question.

My partner has looked at her credit history and it is only the two missed payments previously mentioned.

We have since spoken to a broker whom recommended my partner send's a letter to both borrowers at the time requesting copies of the payment due letters. If they cannot deliver there is a chance the bad credit could be remove? He didn't seem interested in even trying and seemed to fob us off a little which I suppose is understandable.

I've since read up on this and it seems like a very long winded process with a very unsure outcome.

We were declined by Yorkshire Building Society, we applied with these due to a cracking interest rate at the time. We've not tried anywhere else like I say in fear of being turned down again leaving more bad marks on our credit.

Surely with our joint income and a 20k deposit someone will give us a mortgage with a half decent rate?

Thanks again all!

GMS

There should be a lender for you. Do not apply to lenders at random as more declines will hurt credit score.

A broker should be able to help. Find one who will not fob you off. With a 20% deposit and the income you have a 100k property should be doable.