Help default!

Nins12345

I'm looking to take a mortgage out with my parner in the next 6 months or so ( his house is going on the market on Monday) we have my mums house to move into as he is owed around 20k from a bad car accident 2 years ago we should hopefully have around 35k equity from the sale of this house so a good deposit of around 50k looking to buy at around 170k.
He earns 20k I earn 10k (7k in tax credits and 1k in child benefit but havent included these) he has a great credit history mine isn't so great, had a few late payments for credit cards from around 2008, I haven't had a late payment at all in the last year and have a barclaycard gold which I try and pay off each month. I went on experian earlier to have a look at my credit report and there is a default on there (wasn't there last week) from 2009 for only £115 which is saying its settled what I don't get is why it is only just showing up now after 3 years? Will this really affect my rating? Help!

Nins12345

Just wanted to bump this up if anyone can help me

ACG

Yes it will. But it was a long(ish) time ago, it wasnt for a huge amount and presumably since that time you have had a decent credit history?

Your partners income alone will support the mortgage, you have a decent deposit, i wouldnt worry. You might not have every lender available to you but the majority will be.

Nins12345

Yeah I haven't missed any payments for a year now, had the odd late payment ( have been stupid in my youth) iv had a capital one card to build my credit and then I got a barclaycard gold which I have now. What is strange is this default was only put on my account around a week ago I cant understand why it's only gone on now when it's 3 years old. His mortgage is currently with Santander who we were probably going to use again but I think your right going to a broker might be a better idea. Is there anything else I can do to get my credit report up to scratch? Thanks

ACG

Not really, whats done is done.
Youve got a credit card, paying it off in full if possible each month would be a good start - it sounds like you might be doing that or atleast meeting the minimum payments.

Your fortunate that your partners income should financially support it all and your not stretching yourself. I would be very surprised if you couldnt get a mortgage so i wouldnt worry too much.

Nins12345

Thank you for cheering me up lol

sheilds

Hi,

Can I just check if I have missed something?
How can the partners salary alone-£20k- support a mortgage application of £120K ?

ACG

sheilds wrote: »

Hi,

Can I just check if I have missed something?
How can the partners salary alone-£20k- support a mortgage application of £120K ?

Your right, to the OP sorry. I was obviously looking at one of the other figures.

You could argue that his income and the tax credits would support it though, so affordability wise its still doable.
I still dont think there will be too much of and issue getting a mortgage although it might be slightly harder than i originally thought.

GMS

ACG wrote: »

Your right, to the OP sorry. I was obviously looking at one of the other figures.

You could argue that his income and the tax credits would support it though, so affordability wise its still doable.
I still dont think there will be too much of and issue getting a mortgage although it might be slightly harder than i originally thought.

The tax credit are a joint claim if not solely the non party to the mortgage so could not be used to support affordability. Also 7k tax credits would indicate child(ren) which would reduce affrodability in the unlikely event they could be used.

Still over 4 x income allowing for 27k. Not easy to place by any stretch.

sheilds

Thanks for clarification-wasn't being critical-just checking my own understanding.
It's usually me who gets wrong end of stick.....

ACG

Thanks for clarification-wasn't being critical-just checking my own understanding.
It's usually me who gets wrong end of stick.....

Its fine, its better to pull me for any mistakes. Atleast we can make sure were helping the OP rather than giving them false hope.

The tax credit are a joint claim if not solely the non party to the mortgage so could not be used to support affordability. Also 7k tax credits would indicate child(ren) which would reduce affrodability in the unlikely event they could be used.

Still over 4 x income allowing for 27k. Not easy to place by any stretch.

Not easy, but im sure there will be places the mortgage can be placed. Im not the most experienced of advisors so i accept i could be wrong but im sure there will be places.