problems getting mortgage

lucylooby123

My DH and I have been trying to buy a house. We initially tried to buy a house outright with cash, but that fell through and in the meantime we found our dream home. I say 'dream' it's nothing special, but has the room we need and in the perfect location, and a good price.

Here's the crux. We have half the money in cash. DH would need to borrow 4 x his income to make the asking price. It's a 200k house so the monthly payments wouldn't cripple us.

Somehow DH isn't on the electoral roll, but we've put his name down and got a certificate of residency. His credit rating however is poor. Why? because of an old debt, which he paid and hasn't come off the credit rating site. Currently trying to get that sorted but unsure how long it will take? That's all we can see that's making it low. He does have a credit card but hasn't used it in 12 months, which i know is bad for credit rating.

How can we get a mortgage? We have a broker looking into it, but he says it's not looking good.

Are there any companies that specialise in this kind of thing? Ideally we need to sort this asap if we're to put an offer in on this house. We really need to move as soon as we can

Any advice would be welcome

shortchanged_2

Your circumstances don't sound very appealing to a lender, particularly when you are looking to borrow 4 times an income.

lucylooby123

I understand that, just assumed that a 100k deposit would help matters?

lucylooby123

just to add, the broker said it wasn't the amount we needed to borrow, it was being turned flat down by the credit check (experian) which we have a copy of. It's the old debt and the electoral roll that's causing the issue.

Dave_Ham

Stick by my old motif that where there is a decent size deposit there will be a solution..

That said, how much of a bad mark on credit rating is it: default, CCJ, Bankruptcy?

That will make it easier to give a more detailed response..

4 * income is not necessarily a big hurdle...

beecher2

If there is a default, it will take 6 years to come off. How much was the debt for, and when was it run up?

lucylooby123

It was about £200 - mobile phone on contract that had broken and company refused to replace/ repair. So had no phone and still were charged for the contract till the end of the term. It was satisfied about 12 months ago, approx 3 months after the debt occurred. But annoyingly is still showing on experian.

Dave_Ham

Is it showing as a late payment or actually as a default..

Additionally is it showing as paid in full...

Who does DH bank with?

lucylooby123

Dave_Ham wrote: »

Stick by my old motif that where there is a decent size deposit there will be a solution..

That said, how much of a bad mark on credit rating is it: default, CCJ, Bankruptcy?

That will make it easier to give a more detailed response..

4 * income is not necessarily a big hurdle...

default on the phone thing, and one ccj which is satisfied. Broker says it's mainly the electoral roll thing, but council don't update their records till may. However, we have a certificate of residency.

Dave_Ham

Sorry when was the CCJ registered and when satisfied?

Additionally, who does DH have core bank account with?

lucylooby123

Dave_Ham wrote: »

Is it showing as a late payment or actually as a default..

Additionally is it showing as paid in full...

Who does DH bank with?

one default (ccj) from 2010. satisfied.

two from 2010 satisfied, showing red.

others are all green, paid in full (credit history, catalogues credit card etc)