Sleepless Nights....

dawnyb

I am just wondering if anyone can put any perspective on my situation for me please.

Me & OH FTBs.
OH Credit file, blank, no credit history over last 6 years as not needed.
Previously mine has always been excellent through Experian. Added HP in Oct 11 which seems to have destroyed score???? Was alwasy between 920-990, now 4 days ago 703.

No defaults, no late payments, no changes in any other accounts.

I understand that scores are subjective to the lender, but, do you think this will hinder our chances of obtaining 90% mortgage when we go on Saturday?

Also, as a general 'rule' what % of net income should we look to have free once all bills & financial obligations are covered?

Hate applying for credit & this first mortgage application is making me feel sick!:(

Thrugelmir

Was the HP for a sizable sum?

Simon_gloster

Need more info than that. Credit score is one part of the overall score card.

dawnyb

HP was for £23k in total, £331 pm over 4 yrs with around £8k final payment.
Also around £9k ccs & £8k loan @ £315 pm

Thrugelmir

Your debt levels will impact your credit rating.

Lenders will consider your deposit as borrowed not saved.

Without being judgemental. You need to decide your priorities in life. What is most important. In your current financial position lenders will be extremely unforgiving in terms of their credit scoring for you.

dawnyb

Wasn't planning on applying for the mortgage for another 6 months. Had a plan in place to clear the CCs, but a property has come up that we can't let go by without at least an attempt to apply.
If we are declined will clear CC in next 6 months & look again.
We meet the "criteria" with all our financial data that I have given over the phone and we have around £900pm month clear income AFTER all debt repayments & all increased house costs/bills (including £150 more on mortgage than current rent etc) it will literally just be the credit check stage.
Thanks for input though, and yes I will pull my socks up & improve my finances in future!

Thrugelmir

dawnyb wrote: »

Thanks for input though, and yes I will pull my socks up & improve my finances in future!

Start with the credit cards and loans. Paying them off will immediately release more cash to save towards the deposit. Also will add speed to improving your credit profile.

Don't feel down though. Tackling your problems head on is immensely satisfying and does become addictive.

Dave_Ham

and please tell me you are not booked in to see your local friendly HSBC mortgage advisor?

dawnyb

Well that is a story in itself. I did originally want to try wih HSBC as I have banked with them for 11 yrs.
Went into branch near work Monday lunch, quickly sat down with some one who explianed products & procedure (2 appointment process) and would get me an appoitnment in my local branch for Saturday. Was told he would email them & I should expect a phone call that afternoon....
No phone call Mon PM
No phone call Tues AM
Tues 3pm, message from branch near work, mortgage manager @ local branch busy, blah, blah, blah... will call tomoorw, Wed.
No phone call all Wed
So we are now on Thurs AM with still no appointment arranged.

In the meantime on Tuesday I had phone Natwest call centre, advisor went out of way to get details of person in local brach & made an appointment for us, did try & go through all appliation over phone but was on my lunch hour so didn't have time.

So fingers crossed.....