FTB Bad Credit Advice

Frankie1

Hi,

I've been lurking for the last couple of weeks and finally built up the courage to ask for some advice on my situation.

My girlfriend and i have found a house we wish to buy and have started the process by applying for a mortgage. She has an excellent credit history whereas mine is not so good. In 2010 i received a 20% wage cut which resulted in me missing a load of payments on two credit cards. My credit report shows that i have two AP markers in June and July of that year on one of them. There are no actual defaults showing on my credit report.

I have since payed of all the debt i had on the cards and i have had no late payments in the last 12 months.

We approached a broker to try and find us a good deal. We gave him our credit reports and he got the ball rolling.

The first place he applied for was the Coventry Building Society which was declined straight away.

We have since applied to Accord who ran a soft check and have gave us an AIP. We gave Accord printed online bank statements but they came back and said that they need the actual statements issued from the bank. We are currently waiting on them coming from the bank so we can issue them to Accord

The broker is confident that we will be successful, he is saying things like its 99% there, just the valuation to do but i've been checking my credit report regularly and although the soft search is there from Accord, there is no record of a hard search by them. I get the feeling a lot of what he is saying is just to keep us sweet. From what i've read on here, Accord are rather picky with their lending and to apply to them with my history leaves me questioning his judgement.

What are the chances that we would be approved for a mortgage?
Is it worth sticking with this broker or should we look elsewhere?

Summary

House Value - £120,000
Deposit - £12,000
Joint Salary - £41,000
Girlfriends Credit History is excellent
I have a 10+ missed payments from 2010 including two months where an arrangement to pay was issued.
No outstanding debt
No Defaults/CCJ etc
Refused by Coventry Building Society
Awaiting on Reply from Accord
Broker sounds confident
I am wary of broker but i know very little about this industry

If you need any more details just ask and i'll let you know.

As you can imagine, the whole process is very stressful and any help would be greatly appreciated.

Caleb11

I believe from what I've been told that you have a very good chance of getting the mortgage when u get an aip. As long as everything u said is correct- wage bonus commission ect then u should get it. Your broker will have experience. He will know what should get Accepted and if he's seen ur credit report and ur gfs then he should be able to tell. My broker told me he has only seen a handful of times in his 25 years experience when an aip was granted but mortgage not. Good luck

Derivative

In 2010 i received a 20% wage cut which resulted in me missing a load of payments on two credit cards.

This worries me a bit. Have you paid off all unsecured debt and built up a decent amount of emergency savings since then?

20% isn't all that much in the grand scheme of things, you could be made redundant tomorrow. I would be concerned that if the same happens to your mortgage payments, you'll be turfed out and find it difficult to even get a removal company to move your stuff.

Frankie1

Derivative wrote: »

This worries me a bit. Have you paid off all unsecured debt and built up a decent amount of emergency savings since then?

20% isn't all that much in the grand scheme of things, you could be made redundant tomorrow. I would be concerned that if the same happens to your mortgage payments, you'll be turfed out and find it difficult to even get a removal company to move your stuff.

Yeah, i have no debts at all and i moved to a bigger company complete with a larger salary.

I was living alone at the time which made things harder for me. Since my girlfriend moved in i have managed to save up a deposit and pay off 2k on my credit card.

Dave_Ham

Seems a bit odd, but your broker has seen your full credit file and we have not.

I would have said Accord are more selective than Coventry to be honest..

Additionally, I would have assumed that the Accord 90% product was better than the Coventry in any case (although Accord have been changing rates constantly lately)

Accord have been very, very slow of late so do not expect a quick decision on anything...

Is your income split with partner similar or do one of you earn considerably more?

Frankie1

I earn 27k and she earns 14 so we couldn't use her wage alone.

One thing I don't want to happen is that we wait a month to find out that we have been refused and missed our chance on the house whilst in the meantime we could be looking for a more appropriate deal.

Like I said before I really don't know a lot about the processes and such.

Dave_Ham

I do not want to usurp your brokers advice, although I would not bet my dream home on Accord - search Accord mortgage on the forum and have a look..

Is your broker charging you a fee and is it on application, completion or offer if so...

Cannot imagine they would wait for Accord either, although maybe they know something I don't?

Frankie1

He is telling us that it will take 5 days, I have seen the thread on here saying that Accord are nightmare timewise which makes me rather dubious about his approach.

The deal is we give him a fee if he gets us a mortgage

Dave_Ham

Then I think you need to trust him, as he is only paid upon success.

The Accord deal is definitely in the top quartile for 90% products.

Still not an easy next step and call for you to make...

All the best