FTB Mortgage ... what are our chances of approval?

TillyToffee

I would be especially interested to hear what anyone who works/has worked in this field makes of our situation, and your thoughts on our likelihood of being approved.

We have this week had our offer accepted on a £160k house we have got a 10% deposit. We got an AIP from Coventry BS in February saying they could in principle lend us up to 90% LTV on a £185k house, so we have come in 'under budget.

We have gone through the estate agent's 'broker service' because we offered on this house before and were outbid by someone else who subsequently withdrew. We had considered going with the Coventry anyway, so just went with the estate agents package to make life easier and to get on their good side.

Our savings are with the Coventry and we are elligible for their 'members mortgage' for anyone with existing accounts for 3 year or more.

Husband is a 26 year old teacher employed for abt 4 years, with good credit history and on the electoral role at his parents house. I am a 33 local govt officer with 6 years service at current employer with over 5 years at current address and a few years on electoral register. I have no CCJs, no credit cards, just two 12 month old credit arrangements (one Next directory, one Very catalogue which I have now paid off and closed). There are no mistakes or surprises on my credit files which I have checked

My worry is that in April this year, I was late paying a Very catalogue payment and this default has shown up on my credit file.

So far, got our AIP in the estate agents last week, then a few days later the Coventry approved the mortgage in the first instance. They have subsequently asked for more copies of our bank statements. We have heard from the surveyors and solicitors but have yet to hear whether the mortgage has been fully approved.

Do you think the Coventry will decline our mortgage and if so, what should we do next? We want to be prepared for the worst. I was thinking of going to London & Country brokers to see what they can find us. Would you agree? Any other tips?

Thanks in advance.

Dave_Ham

To answer this more fully, need to know exactly what your Experian and Equifax report shows?

When was the Very default actually listed date wise and is it showing on Experian and Equifax?

TillyToffee

The reports show very little as I have very little credit. The irony is that I was trying to improve my credit worthiness and have just succeeded in messing it up!

They just show my details - name and address, that I'm on the electoral register and have a Next account from Jan 2011 which is up to date and a Very account from the same month which now has one default payment against it. I've paid it off and closed it now.

I haven't got them in front of me, but the late payment which was in April has showed up on the report in June as a 'default'. Does this help? What other information might you need?

Dave_Ham

It must be a late payment, a default is significantly worse and typically takes about 3 months of non-payment to pick one up.

A late payment and you are likely to be ok with Coventry. A default and would suggest if showing on both credit files that you may need another solution..

TillyToffee

I am sure it says Default but will check.

I missed a payment through my own fault and rang Very to apologise and asked them not to report it to the credit reference agencies which they agreed to. Then almost immediately after that incident, Santander messed something up (which despite several complaints they will not take responsibility for, and ultimately the buck stops with me) which meant that this time it WAS reported. But perhaps it has been reported as a Default rather than just a Late Payment because they'd let me off the hook previously?

What could another solution be? I am trying to be prepared as possible for any eventuality. When we first put in the offer on the house this problem hadn't happened and certainly wasn't on the reports. It's sod's law that the Default has cropped up the same week that we're being checked out for a mortgage.

Dave_Ham

It is impossible to offer any information without all of the facts.

If it is a default, it is unlikely to have appeared on there on the back of 1 late payment, a broken promise and a Santander issue.

I think you have to have missed at the very least 2 consecutive payments, although possibly at least 3...

If it says default and a date, your options will be limited but check the details as do not want to just speculate on what it might be.

TillyToffee

OK I will have a look at both reports and try and get more facts (I am not really sure what else I can offer - this is pretty much all I know).

So worst case scenario, if it's been reported as a Default, how bad is this for our application? Would it put the Coventry off completely? Is there anyway that they might entertain our application anyway? I don't know whether there are hard and fast rules in their decision making or whether depending on the market etc whether they have some days where they are more generous than others!?

Dave_Ham

If it is a default and registered this year they will decline the application if they see this.

I get where you are at emotionally, but you have to get the report in front of you and then tell us exactly what is on there.

Before the default, you would have to see at least 1 and 2 indicator and I would think 1, 2 and 3 to show these payments missed in a row.

They should not default you for 1 missed payment...

TillyToffee

I have had now had a look.

Equifax - it says "New Derogatory Status" maybe that's where I was getting mixed up (D for Default and all that..) and then when I expand this it just says the lender's name and "1 in arrears" next to it. This could mean 'late' rather than 'default' right? The date of this entry is 1 June, although the late payment incident was in April. It also says there is a change from my credit limit from £700 to £0 - is this them taking the credit off me rather than me closing my account?

Experian - this says I'm not on the electoral roll (I don't think this is correct, and Equifax says I am) but has no record of my two catalogue accounts on there, just some settled (and up to date) prepaid credit card accounts.

What do you reckon?

Dave_Ham

I think this is good news and think you will be ok...

Pleased you got the correct info

tulip5

there is a big difference between a late payment and a default, if it was a default you would have recieved a warning letter from the company unless it was a mobile phone company, advising you you would be defaulted. It sounds like you just have a late payment which is not as bad.