Advice needed. Will we get a mortgage?

alibumblebee

Hello all, I hope you're well and had an excellent Christmas and New Year.

I'd just like some advice really on whether my fiance and I will be able sucessful in applying for a mortgage in the distant future.

I'll give you some details

We've currently got just over £26,000 saved for our mortgage deposit, once it gets to £30,000 we are looking to apply - That should be within the next 6 months or so. We are looking for a house around the £110,00 mark to start off with.

We are both in steady jobs earning a decent salary, income between us is over £40,000.

My partners credit rating is 998, (we checked on experian the other day), hes never had a single missed payment in his entire life, always pays bills on time, has a well built credit history.

My credit history... not so clean as his. Luckily no defaults, ccj's etc but a few late payments when I was a careless University student and didn't realise the importance of paying bills on time! Luckily I'm back on track now and everything is paid on time without fail so I'm completely on track.

No outstanding loans and no car finance as all cars were immediately paid for so between us so no income going to 3rd parties except general bills.

Despite the above are we going to struggle obtaining a mortgage due to me having a few late payments on my credit report? Like I said no defaults etc. I'm so upset I've probably screwed up our chances of getting a mortgage. I've got a while still to improve my credit even further.

Do you think we are going to struggle, if so do you have any tips and advice?

I know putting the mortgage in his name is an option, but we would really like to try putting it in both our names ideally.

Thank you so much.

Alison x

Thrugelmir

No reason that your old history should pose any problems. Every month it disappears further into the distance.

alibumblebee

Thanks for your advice, do you not think I'd still be viewed as a risk though?

Anonmouse

we bought our first house last Jan for 122k, with just a 10% deposit, 36k joint salary and with HSBC who are notoriously picky.

You want a cheaper property with over 25% deposit and a higher salary.

Could easily get a mortgage now.

Experian_company_representative

If you have also signed up to our free online trial you'll know your Experian Credit Score, which is our view of how your current Experian credit report would support an application for credit. Lenders don't use these scores of course - they calculate scores based on a wider selection of data - but it gives you a good idea of how your credit report data is likely to be rated by most lenders. As Thrugalmir says, late payments have less of an effect as they get older, but some lenders may still be unhappy to see them at all. An independent mortgage broker might be a useful source of advice on which mortgage lenders you might best approach. The Lower My Bills section of CreditExpert can also help you source appropriate deals - free while you're on the trial. Good luck.

James Jones

alibumblebee

Thanks, was your credit quite clean though if you dont mind me asking Anonmouse?

alibumblebee

Experian_company_representative wrote: »

If you have also signed up to our free online trial you'll know your Experian Credit Score, which is our view of how your current Experian credit report would support an application for credit. Lenders don't use these scores of course - they calculate scores based on a wider selection of data - but it gives you a good idea of how your credit report data is likely to be rated by most lenders. As Thrugalmir says, late payments have less of an effect as they get older, but some lenders may still be unhappy to see them at all. An independent mortgage broker might be a useful source of advice on which mortgage lenders you might best approach. The Lower My Bills section of CreditExpert can also help you source appropriate deals - free while you're on the trial. Good luck.

James Jones

Thanks so much James

BoGoF

You shouldn't be thanking him, his copy and paste job has been discredited many a time and I'm amazed this site continues to allow him to advertise in such a blatant way.

Anonmouse

alibumblebee wrote: »

Thanks, was your credit quite clean though if you dont mind me asking Anonmouse?

Didn't look to closely at credit rating or "scores" at the time - no adverse history apart from both of us being constantly in our overdrafts but I really cannot see a few late payments that are in the past causing major issues.

As far as I can see you guys would be the ideal candidates from a lenders point of view now, let alone after more saving. If you look at affordability calculators you will probably find you could get a mortgage on a house closer to 200k as a maximum so you are operating well withing your limits.

Experian_company_representative

BoGoF wrote: »

You shouldn't be thanking him, his copy and paste job has been discredited many a time and I'm amazed this site continues to allow him to advertise in such a blatant way.

I don't copy and paste and I am not advertising, just giving advice on the Experian-related issues people raise.

James Jones

welshgirl78

Ali, you will be fine! We had much less deposit than you, almost identical credit histories to you and your partner and had no problems - keep saving and good luck!