Chances?

Yorkshireman79

Hi there,

Myself and my wife are hoping to get on the property ladder this year.

We had a mortgage in principle approved with HSBC on Friday so we are now looking at houses around the £170k mark with a 90% LTV.

I earn 30,500 a year with a £5k bonus (if I hit my target) as well as a company car with private fuel allowance. The BIK is around £7k.

My wife earns 26,500 and then possibly another £2k for shift allowances etc.

My concern is although we passed the initial 'soft search' credit check I have 3 late payments on a credit card, which is now settled. The late payments were roughly 5 and a half years ago.

I've read that HSBC's lending criteria is very stringent at the moment and I suppose I am asking what the likelihood is of passing the full check once we have found a property?

Anyone with similar experiences who successfully secured a HSBC mortgage ?

Thrugelmir

Do you owe any money on unsecured debts? i.e. credit cards.

Yorkshireman79

No debt at all.

Thanks

Thrugelmir

Then you seem to be in a good position.

Although you are looking for a 90% LTV mortgage. Multiple to earnings is around 3 times. Which is a major plus.

Yorkshireman79

Thanks for the reply.

Are the late payments likely to play a major part when the full credit check is carried out?

I believe, like you've said, that our affordability is good however I've read a few scare stories of mortgages being declined due to fairly old missed payments.

Thrugelmir

If you are ok in all other respects. Then this may well negate any impact of the old late payments.