FTB joint mortgage application with poor credit score

charitygirl

Hi all,

Hope you can help with some advice. My husband and I were looking to buy our first house this year with a 90% LTV mortgage. We are just starting to make appointments with brokers, and I took a look at my credit report (experian) in preparation.

The credit report is poor (703 score) on two counts.

1. I have 2 defaults registered from Scottish Power in 2011. I am questioning these with both experian and SP because these relate to gas and electricty (under one account) which were paid in full and then I switched. SP refused to issue a final bill without sending someone round to read meters, never did, I had to chase etc over about 6 months (all the time paying my new supplier). I finally got a bill and paid in full. The default notices are saying that it is settled, but it is still two big fat red marks aainst me!

2. It says because I only have a credit card limit of £800 (my choice, it is a cashback card I use for grocery shopping), it means I am higher risk because of low amount of credit. In the past I have had credit cards and loans into the thousands (no defaults) so not sure why this is a problem.

Before I start on the mortgage applications etc, is this going to cause my husband and I a huge problem? We have good solid jobs and combined salary, evidence of regular high savings and have never missed a payment for anything.

I'm worried - any help would be gratefull received.

charitygirl

Just to also add - I have checked Equifax and this doesn't appear on there and I have a 446 rating of "good".