Not perfect credit

Coyote1811

Evening all,

I appreciate this question is asked a lot, but after trawling these forums I can't quite work out what the answer is.

My question is, will I get a mortgage without a perfect credit score?

I have checked my credit score with experian which says good. I have a default from feb 2007 and 3 missed payments from 2009. My wife's report says fair, which from looking at it is mainly due to the number of outstanding at the max credit cards and a loan, all of which were paid off and closed today.

We have seen a property for 310k, and have a 10-12% deposit. I earn 45k salary with 20k bonus, my wife earns 21k. We will also have a lodger paying 4k per year.

We have a broker in place but things aren't moving that quickly. We really want to move on this. Are we likely to get a mortgage or are we dreaming?

Your help and comments would be gratefully received and any suggestions on other possible brokers

Thanks

Thrugelmir

If you've only cleared credit cards/loans today. Then the credit checks that potential lenders run will not show this. Which may well score against you. Given the fact that you are looking for around a 90% LTV mortgage. Will be several weeks before all the data is updated and available.

Is your broker aware that you've cleared the debts?

Was the default settled? If so when.

Coyote1811

We have told the broker that the debts are settled and we are getting confirmation that the accounts are closed. I realise it won't show for a while on the report.

Default was settled back in 2007.

opinions4u

I'd be surprised if that gets through with such a small deposit.

kingstreet

Small deposit.
Historic adverse.
Income stretch - need to include bonus.

This will make the job difficult.

Many lenders exclude variable earnings if they aren't guaranteed.

Late payments and the default will limit the number of lenders open to you, even more so at the high loan to value.

You may have been better retaining some of the credit card debt to be able to offer a slightly higher deposit, perhaps 15%. Perverse, I know, but the income situation is probably the lesser problem and a better loan to value might swing it.

You'll need a very good broker to do this. No estate agency advisers with limited panels. Ask friends and relatives for a recommendation. Failing that, try https://www.unbiased.co.uk, remembering to switch off the "website/email only" option, so you get a full list and not just the paid-for adverts.

Get a broker who will place this case based on what he can see on your credit file. Get copies of each from all three CRAs if you haven't already. Fishing trips to lenders doing speculative credit searches will do more harm than good.

Equifax

https://www.econsumer.equifax.co.uk/...erletter.ehtml

Experian

https://secure.wiseconsumer.uk.exper...x.html?data=00

CallCredit

https://www.callcredit.co.uk/stat-re...pl=regPurchase

Six years from the date the default was registered, it will fall off your credit file. Can you wait until February?

Dave_Ham

Kingstreet summarises it perfectly above, everything I was thinking.

The default is potentially a showstopper in itself at this loan to value, but you need to have all 3 credit files as above.

If these were not the first words out of your current brokers mouth, then you need to bin them. In this case, the content of those reports is absolutely crucial to any success/solution

Get those reports to a specialist and quickly, as this will improve your chances of success.

Coyote1811

Thanks all.

Is there a big difference regarding acceptance if I was to have a 15% deposit or is the default going to pose a problem every time?

Dave_Ham

Depends upon your credit files and way you have recently conducted your bank account income and expenditure.

15% may open up a couple of additional Building Societies who will manually underwrite your application, but there would be some who will look at it with 10% deposit - but heavily dependent upon the credit file information and the rest of your case.