Mortgage credit checks - have I done enough?

mr_flibble

Hi.

I am hoping that there will be some of you who can give me good advice on how to ensure my credit is up to scratch for a 95% mortgage.

I have about £3000 for a deposit and hope to raise the rest in the next couple of months for house in the £110,000 price bracket.

I have just come out of a marriage and after a bit of a struggle sold the house last year, there was no equity in it and it made a small loss which I took on in order to move on and sever my link to my ex.

The joint accounts were closed last year, but Halifax didn't close the joint account as they said they would which i found out last week when I got my credit file from check my file. It is closed as of friday. I had removed my ex as financial associate from experian and equifax but didn't know about call credit so the letter went in the post yesterday to them to remove the link to my ex.

My ex is financial poison as she has endless defaults.

My score on check my file is 807 and there are only 2 late payments shown, both for the same month in 2010 when I was late paying my credit cards. They were paid but the file is sadly accurate. The rest shows many years of good payment of debts and i have 2 mortgage files (i swapped for better rates when i could) which are closed but show they were kept up to date with no late payments.

With only 2 late payments in 6 years will I be ok?

I have £3000 in credit card debt and lots of limit to spare, the cards are not used anymore and are being paid off as quickly as I can.

My income is £34000 and i have a child.

Ideally I would wait until all the credit card debt is gone but there is a house on the market which is probaby not going to be available long and I would like to get a mortgage arranged in principle so I can make an offer.

what are my chances?

Kel.

MagicCats

mr_flibble wrote: »

Hi.

I am hoping that there will be some of you who can give me good advice on how to ensure my credit is up to scratch for a 95% mortgage.

I have about £3000 for a deposit and hope to raise the rest in the next couple of months for house in the £110,000 price bracket.

I have just come out of a marriage and after a bit of a struggle sold the house last year, there was no equity in it and it made a small loss which I took on in order to move on and sever my link to my ex.

The joint accounts were closed last year, but Halifax didn't close the joint account as they said they would which i found out last week when I got my credit file from check my file. It is closed as of friday. I had removed my ex as financial associate from experian and equifax but didn't know about call credit so the letter went in the post yesterday to them to remove the link to my ex.

My ex is financial poison as she has endless defaults.

My score on check my file is 807 and there are only 2 late payments shown, both for the same month in 2010 when I was late paying my credit cards. They were paid but the file is sadly accurate. The rest shows many years of good payment of debts and i have 2 mortgage files (i swapped for better rates when i could) which are closed but show they were kept up to date with no late payments.

With only 2 late payments in 6 years will I be ok?

I have £3000 in credit card debt and lots of limit to spare, the cards are not used anymore and are being paid off as quickly as I can.

My income is £34000 and i have a child.

Ideally I would wait until all the credit card debt is gone but there is a house on the market which is probaby not going to be available long and I would like to get a mortgage arranged in principle so I can make an offer.

what are my chances?

Kel.

How can you make an offer without your deposit?

mr_flibble

MagicCats wrote: »

How can you make an offer without your deposit?

That's not very helpful I don't need one line snipes I need advice. I'm very worried about the credit check. My family will gift the rest if we need to move quickly.

Anyone got any real advice?

Wutang_2

Why don't you speak to a mortgage broker rather than let someone on here guess for you? That's real advice.

Mara69

mr_flibble wrote: »

That's not very helpful I don't need one line snipes I need advice. I'm very worried about the credit check. My family will gift the rest if we need to move quickly.

Anyone got any real advice?

I thought it was a reasonable question. In your opening post you said stated that you only had £3k towards a £5.5k deposit. That is quite a gap.

mr_flibble

Wutang wrote: »

Why don't you speak to a mortgage broker rather than let someone on here guess for you? That's real advice.

I plan to and I have already spoken to a broker briefly by phone to see if there are products available, there are, hence my question.

I just wanted to know if anyone had experience of the credit checking before I started the whole process.

I should have known better than to post here.

Is this a Monday morning thing or is everyone this unhelpful?

guesswho2000

I'm in the same boat, going through the 95% LTV process, scoring is incredibly harsh at that level although more lenders are beginning to offer them.

We're applying through Nationwide with a lengthy spotless credit history and they checks they're carrying out are very thorough.

From what I've read, Nationwide are particularly harsh, and your best bet will be through a whole of market broker. I had a meeting with one who showed that there were a few deals available from various building societies, some of which will only lend in certain areas (one available was Cambridge Building Society, but they have a catchment area of Cambridgeshire and the surrounding area, other BSs have similar criteria).

Fees on 95% LTV mortgages seem to be quite high too, which is fair enough considering the level of risk, but you'll need to factor that in when saving for your deposit too.

mr_flibble

Thanks for the help. The whole process is so much harder than it ever was. There is a product from Newbury BS which offers 95% LTV which I am looking at. Just waiting for a broker to call back to go through the ins and outs of what Newbury look for.

Deposit will be made up by family if we need to move fast. it's the credit scoring that bothers me.

Kel.

MagicCats

mr_flibble wrote: »

That's not very helpful I don't need one line snipes I need advice. I'm very worried about the credit check. My family will gift the rest if we need to move quickly.

Anyone got any real advice?

It wasn't a snipe; relax!

The reason I ask is credit scoring might be the least of your worries if you end up with an offer being accepted and have no deposit. Gifted deposits can also make some lenders wary from the advice I've seen on the forum. This is due to them wanting, and in some cases requiring a track record of saving. So you may get an AIP but then an underwriter rejecting it at full app stage.

You're also going to have whatever you owe on your C/C knocked off what you can borrow therefore reducing your purchasing power. The credit score numbers are worthless, honest. It's best to have all the basics in place:

Correct address and on electoral roll

As much unsecured debt cleared

Correct and incorrect financial associations stated

All of this I've learnt from listening to advice on the forum, and gaining my own mortgage at 90% People here will help, but the majority won't gloss over things and will ask what appear to be annoying questions.

Good luck.

mrpootle830

My first thoughts are how you will also pay the legal fee's which will probably be between 1k - 1.5k?

mr_flibble

mrpootle830 wrote: »

My first thoughts are how you will also pay the legal fee's which will probably be between 1k - 1.5k?

Hi,

the legal fees will be saved for too. I have £3000 now and the rest will come from saving and selling what can live without as possessions can always be re-bought later if need be.

I am selling some fancy hi-fi stuff that i can't enjoy with a one year old with peanut butter hands around anyway which should raise close to another thousand by next week. There is money owed that is coming in which will raise it to about £6K by June, maybe earlier. If we need to move quickly then family will help plug the gap.

If things don't come together and I can't move on the house then I will just clear the credit cards and start saving again up to the deposit level.

Thanks to all for the advice.

Little more chilled now, forgot how stressful even thinking about buying a house is never mind the process of actually doing it!