Mortgage Application Advice Please!

Ypres12

Evening All,

Hopefully someone out there will be able to advise me on the following scenario. My wife and I have very recently sold our property and are looking to buy a new place in the next few weeks. The mortagage for our current place was in my wife's name as she bought it before we were married. The next mortgage will be a joint one. However, I have a very poor credit score - 515. I have no defaults or CCJs against my name but have credit card debts totalling £10k and have a poor score as I was late with a number of payments. I earn £40,000 per year and am very concerned that our joint application will be declined. We have a £55k deposit for a property selling at £150k and I wanted to know if anyone can shed any light on the likelihood of our application being rejected?

Thrugelmir

Suggest you tackle your credit card debt asap. Though late in the process to be able to change matters now. As may well impact on your application in some form.

Conrad

£10k credit card debt is not in and of itself any particular issue as long as affordability is evident.

Your low score is an issue. These question can only ever be answered one way; No one here could possibly predict the outcome of a lenders scoring system which relies on software alagrythmns which litteraly have a trillion to the power of 10 possible outcomes.

In plain English, apply and see. Answer the questions so as t put your best side on show - no lender will ever challenge the job description of 'maintenance manager' instead of care taker for example. Obviosly put landline contact numbers for work and home as this enhances your score. Above all scoring is enhanced the more stable you are - someone who states they changed Bank account 2 years ago is needlessly lessening thier score, instead put the account term down that applies to say that post office account your Mum arranged when you were 3.

Dave_Ham

To add, a few missed payments over the last 6 years is sloppy rather than sinister.

3 missed payments in the last 6 months however will present an issue.

Also, the selection of lender will be factored in. If you both turn up at HSBC or Nationwide you would have less chance than Halifax or Woolwich (as an example)

Good deposit, good applicant 1 (assuming) so long as your missed payments are not stupidly high, I would think you have a better chance of passing than failing. (taking in point above)

Good luck

Ypres12

Many thanks to all for your advice.

In terms of late payments, I reckon I have probably made 4 late payments in last 6 months on one credit card account. I have 4 other cards and have never made a late payment on any of those (over 5 years). The late payments are down to a lack of organisation on my part as there was initially a problem with the direct debit meaning I then had to make online payments and I simply kept forgetting as I do not receive paper statements.

Does this change anything at all?

Many thanks in advance!

Ypres12

Hi All,
Further to the query listed above, I wanted to get your opinions on a few other details.

My wife and I went to the Bank of Scotland to meet with the mortgage advisor. My wife had an old AIP from them dating 6 months back and was no longer valid. (Current mortgage is with Bank of Scotland and she also banks with them, she also has perfect credit history). Before the advisor mentioned any figures, she ran a credit check/score on both of us and said that everything was fine and gave us an updated AIP. She said that there would be no problem at all with the mortgage. Given the information listed above, am I out of the woods yet? (I know you never are until it is signed and sealed, but the fact that the credit check came back fine, are things more likely to progress smoothly?

One of the posters above advised me to tackle my credit card debt asap. I have been offered a £10k loan from a mate which would settle all outstanding balances. Would this be advisable at this stage or is it too late to have any impact?