Mortgage - Old defaults

Briggouk

Hi all, first timer here be gentle.

Me and the missus are getting married next year and also want to purchase a house together as we currently live in a 1 bed flat (which will be rented out on a B2L mortgage she's converting it too, the income will outweigh the mortgage costs and as its B2L we can use that as an income source). I have never owned a house myself.

Now the bad stuff -

Default Apr 2007 - £1000 - CC debt
Default Aug 2007 - £2200 - Loan debt

Both fully satisified shortly after (don't ask!) was young and foolish and had credit thrown at me left right and centre, was starting to struggle paying them off might have been ok, however was coaxed in by those "we can wipe all your debts, how awesome is that" companies and ruined it for me, as they didnt charge I thought it had to be a good idea they aint gaining anything from me.

Anyway now the good stuff -

Mortgage we want to get 150-160k
Joint income £48k
10% deposit, possibly able to raise 15% if needed.
She has a perfect credit score 999 (damn her)
My current credit score (experian) is 759, was 839 earlier in the year, applied CC to help boost score recently, although realise score isnt probably what the lender would use.

I have had nothing since the defaults, not a single arrears payment ever. Both been with the same employer for 10+ years, same address last 5 years, same bank 4 years.

I am really worried my defaults will screw things up for us and we'll have to wait a further 2 years before they drop off, based on quite a high LTV (90%) do you think the chances are slim to none?

Yes we have spoke to a WOM mortgage broker and she's going to do some digging, but we're waiting for our credit files to show all current CC bills are clear and also recently the other half refinanced a loan to get a much cheaper rate but on the experian file its showing both loans active when it should only be one.

Cheers for any help or reassurance!

property.advert

You probably know they fall of after 6 years but I was encouraged by an advisor showing 4 year old defaults. But I was talking about a much bigger deposit, nearer 30% and quite a bit less than 3 times a single income.

I think you'll struggle and you won't be offered anywhere near the best rates. Even with a perfect record, having only a 10% deposit would not qualify you for top rates.

I could be influenced that a 2 year deal with no exit penalties and no huge fees could be the way forward. In 2 years time, you will have saved some more money, your file will be clear (do not get any more debt) and if prices are the same or have increased, you may get to 20% or more and that would open up a lot more doors.

Briggouk

The broker said it might be difficult, I've been diggin and diggin loads and from a few 'bad credit' search enginges it seems having that ever so little extra 5% to make it an 85% LTV it opens up quite a few more doors to mortgage lenders? Seems strange as its only 5%.

Would this be true? As you say nearer 30% would make more sense.

Annoying thing is we can afford the higher rates easily, its just getting them!