Bad credit - chances of mortgage?

lolly3fh

Hi,

My partner and I are planning on buying a house next year. His score is excellent, mine not so much. It's Very Poor, and I monitor it monthly on Creditexpert. It has actually improved slightly in the last few months.

Some would be inclined to think I'm a fool for wanting more credit; but I have already given myself the lecture, worked hard and dug myself out of my manmade hole. I have now not missed a payment or been late in 2 years, a newly perfect payer if you will. However my nasty default that only caught up with me last year will be on my file for 5 more years (I'm trying to get it removed at the moment as I was defaulted for a massive £14.00).

Before I go through the mortgage application, I want to check my chances and get advice, I don't want fruitless and unnecessary credit checks on my file that will further damage my rating. My partner is fully aware of my rating.

When applying for the loan, they will review my score. When they see my terrible number, will they instantly dismiss me or will they review my payment history and see that I am newly responsible and have been for the last two years? I know we might face a higher interest rate, I just don't think anyone anywhere will accept me, even sub prime lenders?

Thoughts and advice?

Dave_Ham

The score you pay £15 a month for is worthless, the information is priceless.

If you have been perfect for 2 years, depending upon further information you have opportunities. They cannot back date the default and on £14 it is a disgrace, but you will need to fight and fight quickly on it.

Are the defaults in your name settled ? (I mean have you paid them)

What sort of deposit do you have, what purchase price and what income do you both have?

Will quickly be able to determine chances of success, adverse credit is my specialist subject...

lolly3fh

Hi Dave,

Yes it's settled. I'm trying to get it removed as I'd made a huge payment the month before and had that little bit left. Only myself to blame though, but trying to fight it.

We will have £10k, but under Firstbuy we only need 75% LTV, on £180k property. I think its a bit optimistic...

lolly3fh

Forgot income, £43k pa between us

Dave_Ham

Whilst I specialise in adverse credit mortgages, have not really had much exposure to First Buy.

Typically, at 10% deposit with your circumstances it would be hard work. With a 15% deposit and all of the defaults satisfied, it would be achievable.

Issue with First Buy is that only selected lenders are used (I believe) and therefore these lenders would automatically decline your case due to the defaults as the computer is likely to say no.

I assume the breakdown in income would not allow your OH to buy in sole name?

lolly3fh

Potentially he could go it alone, but wouldn't get the amount he wants. We don't need to rush, so I will keep fighting the default and doing the overtime! Thanks ever so much