FTB mortgage, looking for advice & views, what would you do in our situation?

Rovver125

Thrugelmir wrote: »

Minimal. Time is the only healer for poor historic credit history.

Underwriting criteria may well tighten further in the short term.

Keep saving.

Sorry Thrugelmir, confused, I wasn't referring to my partners credit history in my first post today, but the use of a cashback card for monthly spending, paid in full each month, account in my name and whether use of this during month of application would impact on likelihood of acceptance what with having to declare any current balances?

You follow me or is it me that's getting confused?! (easily done where mortgages are concerned).

Thrugelmir

Rovver125 wrote: »

Sorry Thrugelmir, confused, I wasn't referring to my partners credit history in my first post today, but the use of a cashback card for monthly spending, paid in full each month, account in my name and whether use of this during month of application would impact on likelihood of acceptance what with having to declare any current balances?

Apologies if my answer wasn't clear. I doubt that use of a cash back card will impact your application.

Lenders apply alogorithms against datasets supplied by the credit agencies to credit score you. So your past history is very important. As depending on risk criteria . Lenders will filter out applications so as to find their target market.

Personal credit scores are of no use. Merely a guide to the consumer.

kidmugsy

Rovver125 wrote: »

Is it even worth applying again whilst she still has the two defaults on file? I'm assuming she will be considered high risk until these defaults disappear no matter what she does with re-building credit. Would it be better to just forget the idea, save as much as possible and try again after Oct 2014?

Is there some great objection to waiting to Oct '14? Your joint credit will be better, your LTV will be smaller, and perhaps house prices in Cornwall will be lower.

Rovver125

Thrugelmir wrote: »

Apologies if my answer wasn't clear. I doubt that use of a cash back card will impact your application.

Thanks, this is what I wanted to clarify as we were unsure.

Thrugelmir wrote: »

Lenders apply alogorithms against datasets supplied by the credit agencies to credit score you. So your past history is very important. As depending on risk criteria . Lenders will filter out applications so as to find their target market.

Personal credit scores are of no use. Merely a guide to the consumer.

Yes, we're aware of this and know my partners defaults could always be an issue whilst they are on file. It's a long and rather upsetting story about how she ended up in debt and needless to say, if she could turn back the clock, things would be different, but we live and learn!

kidmugsy wrote: »

Is there some great objection to waiting to Oct '14? Your joint credit will be better, your LTV will be smaller, and perhaps house prices in Cornwall will be lower.

We have discussed waiting, as we think we could potentially have in excess of 35% to put down if we did. It's more about personal circumstances and our current desire not to be restricted by renting. We're both at the age where we're looking to the future, settling down and starting a family and we would much rather do that in our own home than whilst renting.

If we did get a mortgage in the near future we would be looking to start with a 30-35 year term but with the view to make regular overpayments to reduce the term and total debt as much as possible.

House prices in Cornwall have remained quite stagnant during recent years, obviously it's a desirable place to live and we have a high influx of people relocating here. Having said that, who knows which way the markets will go in years to come, opinion seems to be very divided still at the moment.

Thrugelmir

Rovver125 wrote: »

Yes, we're aware of this and know my partners defaults could always be an issue whilst they are on file. It's a long and rather upsetting story about how she ended up in debt and needless to say, if she could turn back the clock, things would be different, but we live and learn!

I was also referring to your own history. Even paid on time debt leaves a trail. Open number of accounts etc.

Paying on time. Is far from the only criteria.

Rovver125

Thrugelmir wrote: »

I was also referring to your own history. Even paid on time debt leaves a trail. Open number of accounts etc.

Paying on time. Is far from the only criteria.

Appreciate what your saying, I'm reasonably confident in my own history. Never been rejected for credit and I've had a LOT over the years. Since clearing my debt, I have tidied everything up, only have the accounts listed above with Halifax & Capital One now, no other open accounts or incorrect addresses, no overdrafts and a mobile phone contract which I've just cancelled to go on PAYG, electoral roll all correct and up to date etc.

I'd like to think I've done about as much as I can for now to tidy it all up. Come to think of it, neither of us has applied for any new credit for over a year now.

Previous check of credit reports showed mine to be very tidy compared to partners. She will be ordering hers in the next week or so to check current status.

Thanks for all the replies, I needed to cover everything with other peoples opinions and views to make it all clearer in my head I think.

Thrugelmir

Rovver125 wrote: »

Appreciate what your saying, I'm reasonably confident in my own history. Never been rejected for credit and I've had a LOT over the years.

The financial world has changed since October 2008. The rules of the game are no longer the same. The people who lent you the money are gone. Instead the clock has been wound back 15-20 years. To when bankers ran banks not salesmen.

The past 12 months has seen an enormous tightening of risk management. Which then transfers down to the underwriters to implement. Banks have no need to find customers. They are hitting lending targets. So onus is falling on potential borrwers to be squeaky clean. As thats how high the bar is being raised.

Rovver125

Thrugelmir wrote: »

The financial world has changed since October 2008. The rules of the game are no longer the same. The people who lent you the money are gone. Instead the clock has been wound back 15-20 years. To when bankers ran banks not salesmen.

The past 12 months has seen an enormous tightening of risk management. Which then transfers down to the underwriters to implement. Banks have no need to find customers. They are hitting lending targets. So onus is falling on potential borrwers to be squeaky clean. As thats how high the bar is being raised.

You talk a lot of sense Thrugelmir, things have changed a lot now. I'm optimistic about it all at the moment. Our eyes are open and we know it won't be easy.

At the moment we think we're going to go and see a broker around April, lay it all on the table and see what happens. If we get rejected again, leaving it six months will obviously push us to October, not ideal time to be getting a mortgage, so we would then wait until this time next year and try again.

Of course we will keep saving as hard as we can. Partner is going to open a first time buyer style savings account asap so she has savings in her name with one of the lenders aswell.

In an ideal world, 160k would be our perfect target figure, that will get us everything we want in the area we want with no compromise. Assuming prices don't jump up again of course.

We'll get there one day

Thrugelmir

Rovver125 wrote: »

We'll get there one day

I'm sure you will. Make a plan and stick to it.

Even if it means comprising on your first property. There's plenty of time in the future for that dream pad.

Best of luck.

Rovver125

Hi all, resurrected this thread as I'm after some more words of wisdom & didn't see the point in starting a new thread!

So, following on from my earlier posts, we have just started talking to a mortgage broker to see what options we have at the present time.

After looking at my partners credit file, he has told us that the value of my partners two remaining defaults are a stumbling point & probably the reason we were declined in September. The one which drops off in October this year is the largest & the other which drops off in December 2014 (not October 2014 as I had previously thought) is a lot less, but may still require discretion from a lender to get us a joint mortgage.

So the current situation is that a joint mortgage may be possible early in 2014, although possibly not until early 2015!

The broker has advised that getting a mortgage in my sole name for the first two years is possible on my income.

We currently have 26k. 23 of this is gifted to partner from her dad. Other 3k is mine. Our opinions on this have changed from my earlier posts (seeing some beautiful properties appearing on the market within our budget is giving us very itchy feet!!) & we both want to do it as soon as we possibly can.

However, is it in any way possible due to the gifted deposit?!

I'm awaiting a response from our broker, but in the mean time, opinions & advice thankfully recieved as always