Nationwide save to buy 5% deposit mortgage small default game over?

Louise85

Sorry really long post.........
Hi I was after some help my husband is looking to apply solely to nationwide for a mortgage for £118k for a property worth £125k so he has just over the 5% minimum deposit required in his save to buy account, he's self employed with accounts for the past 3 yrs showing a net of £35k and gross of £50k he has started more work this year so his income is a bit higher now but this won't show until he does his tax return in April, he has me and 2 kids as dependants I do not work and am not going in on the mortgage etc we believe that what we are asking to burrow is affordable considering with a 5% rate on repayment mortgage will still be £80 per month cheaper then our rent.
He has a experian score of just over 920 and has 2 credit cards with only 100 on each which are regularly paid in full.
The problem we have is a satisfied default from 2009 for £66 from 3 mobile which genuinely should not be there and have tried to get it removed with out any sucess and also he has 3 missed mortgage payments (not a default) from a house we owned in 2007 which is also satisfied.
We have heard that to be within a chance of getting a 5% deposit credit report has to be perfect but would his be ok? With him being self employed too would that also work against us? According to nationwide lending criteria as the default is so small and over 3 years old its not a problem and according to the mortgage calculator the advisor did in branch he could burrow upto £133k so we aren't pushing it. Any help would be appreciated I know if we had 10% deposit it'd be better but unfortunately we don't. And he's also debt free other than the £100 on each credit card which are regularly cleared in full x

Dave_Ham

Will be a really close call and no one will be able to second guess this appropriately I am afraid.

On the positive the default is not to a bank, for a stupidly small amount and a number of years ago.

Whilst it fits their criteria in terms of value, it will still be subject to credit score and therefore it may still be a showstopper. The mortgage arrears (albeit historic) will not be helpful either.

With a 5% deposit, lenders are very, very selective and it not being a joint application will not please some lenders. If your credit file is clean, you could still go on the mortgage with £0 income.

Best of luck

Dave_Ham

I thought the save to buy could only be done directly with Nationwide - I may be incorrect and not quite got the time to double check.

There are a few too many variables here to balance at 5% deposit and I am starting to think this is going to be really tricky to succeed.

Sorry I cannot be more positive, if you have a broker and trust them then fingers crossed you get a result.

All the best

Dave_Ham

At 10% deposit there will definitely be more options, whether that is practical is down to you.

Some lenders will treat you as a married couple, so yes they could question the DMP although it will depend wholly on the lender.

Dave_Ham

95% LTV is hard work, whilst I think it is unlikely they will dig into your situation; I also think it is unlikely that he will be successful although not much experience of the save to buy with Nationwide.

90% opens up more options and much more likely.

I think your broker must think the 95% is a non runner, or he/she would have given you the 95% LTV options they have.

Louise85

Thank you very much for your time and opinions on my matter I appreciate your time, he is going to see both nationwide and the broker today just to have a more in depth chat before he decides what to do next as don't want unessicary credit scores that haven't a hope in hell, many thanks again.

Conrad

Be aware he will be asked about other occupants to live in the new property which can throw up all sorts of issues in terms of affordability and also sometimes lenders will deem a non participating party with bad credit to be a risk to the overal soundness of the application.

Louise85

Update.... Applied with nationwide for 10% declined so broker said tried halifax slightly nervous as that who our arrears are from back in 2007 but came back saying yes with 15%! So got a dip but for 15% got to see if that works out but it's a decision with a scope to burrow up to £155k we'd be looking for a mortgage then of £106,250 k mortgage now worried as if we did o through to full application would the historic arrears bring it all crashing down?