Likelihood of getting a mortgage?

Caleb11

Just wondering if anyone could look at my circumstances and give me an insight on the likelihood of getting a mortgage with my income and credit history.

Im part time at the moment in my job and will be going full time on the 1st of June on a salary of £14500 +commision. I would be applying on the 1st of June once i am in my new role.

I want to buy a house for £70,000 and i have 15% deposit.

My credit report looks like this:
Mobile Phone: 12 months - all payments on time
Bank account: 23 months - £1400 overdraft which i will clear before applying for mortgage. Never went over the overdraft.
Credit Card: 23 months - £350 which i will clear before applying. All payments made on time.
Bank account: 12 months - never went overdrawn
Virgin Media: 13 months- all payments on time.
Bank account: 13 months- never went overdrawn
Credit card: 10 months- all payments on time and balance cleared.

The only problem is-
Internet dongle from 02- 4 payments late then account settled.
This was due to a mix up with a promotion i was given when taking it out. It was supposed to be 4 months free so i never paid it, what i didnt realise is that they were going to refund me it once i had paid it. I then paid to settle the full account.

Do you think this will stop me getting a mortgage?

Thanks

Caleb11

this happened 2 years ago in 2010 if that makes a difference

Thrugelmir

Clear your overdraft and credit cards from your savings.

Draw up a budget to see how much you can afford on a mortgage. As affordability may be an issue.

Here's a link to one. To give you an idea of what you should consider.

http://www.makesenseofcards.com/soacalc.html

Caleb11

Thanks for your reply. Do you think the 4 late payments will mean I won't get accepted even if they feel I can afford it? I am trying to dispute these late payments with o2 but not sure they will agree

bigadaj

Probably best to get copies of your files from the three credit reference agencies, and check what is recorded. You can try and get O2 to amend, but factually speaking you were in default even if unintentional. You should be able to add a note to your file explaining this which may help.

property.advert

Does your deposit include the purchase expenses ?

Why do you have debt and savings ? That is madness.

I'd say you are short on affordability because your council tax is the same as mine if I earn £100k and my shopping is the same as yours but your necessary bills consume nearly all your salary whereas they are a small fraction of your income if you have a much higher salary.

If however, you have been paying rent and a mortgage would be a substitute, then that is a good argument.

The question must be how you have saved £10k or so and yet run an overdraft. If you have saved it then fine, it is just poor money management but if yo cannot show any savings history, then your overdraft and credit card only show that you are living beyond your means.

Caleb11

Thanks for your replies. I can afford the mortgage even on my low income. My partner has a good job but he isn't able to get a mortgage due to past credit troubles. We are both renting separately so it makes sence to get a mortgage. The reason I have both credit and savings is because stupidly I took out an overdraft as a student intrest free. I'm going to pay it all off next month Credit cards and overdraft. We have been saving plus my partner has savings of his own that's why I have savings and debt. So basically I know I will be able to afford it but I just wanted to know about these late payments. If o2 don't take them off will the mortgage company consider me or are late payments really bad? I know they are obviously bad but can they be overlooked if I've proved though my other accounts that I can pay on time ect?

Thanks.