Mortgage advice please

richiethekid

Had a meeting with an independent mortgage advisor a couple of weeks ago. He seemed to think he'd be able to get us a mortgage no problem, despite me having an old credit card default on my file (which is satisfied). He tried to get an agreement in principle with A & L but they turned us down. Turns out my other half has some inaccuracies on her credit file, which obviously we'll need to sort out. But the advisor chap seems to think that my default is preventing us from getting a 100% mortgage. Obviously we could wait until this disappears from my file (which should be early next year as the default was dated Jan 2002) but there are 2 houses which we're extremely keen on and it would be a good idea to buy one of these if we can.

Here come the numbers:

My earnings - £18450 + £800 car allowance + £1k-2k mileage
Mrs The Kid's earnings - £9000 (was £11400 but she's reduced her hours)
Tax Credits - £600 - £700 a year
Mortgage amount - £120k-125k

Would need to be 100% mortgage as we only have enough savings to cover fees.

A couple we know were in a similar situation a couple of years ago and managed to get a 100& mortgage with Nothern Rock for around £130k despite earning less than we do.

Any advice much appreciated.

herbiesjp

NR could be an option

But it also depends on the inaccuracies on your wife's file

Put a notice of correction on her credit file, so that way someone will have to make a manual decision as opposed to an automated decision

The problem is 100% mortgage have very strict criteria and sneezing the word default can put some lenders off

Have a word with a whole of market adviser, as they will be best placed to run the case through various lenders verbally to see if they will consider the application - sometimes even if it comes back as a decline it can be appealed if the lender is aware from the outset that there have been problems.

HTH

richiethekid

The defaults on her file are well over 6 years old so should disappear altogether when we manage to get it straightened out. The advisor we spoke to was whole of market. He seemed to contradict himself which is why I was after a second opinion. Initially he seemed to think my default wouldn't cause a problem because it's over 5 years old and it's been settled for 2 years (AFAIK it should disappear from my file 6 years from the date of default, not satisfaction) plus both our credit histories are squeaky clean for the past couple of years. I even have a personal loan and an overdraft with A & L which is why the decline came as a surprise. But since they declined us, he seems to think he'll only be able to get us a 95% mortgage whereas before he seemed to think 100% wouldn't be a problem. Saving a deposit isn't an option as it would take us a good couple of years at least to save that kind of cash, by which time prices could have increased massively, or crashed, or both.

herbiesjp

Indeed you are right about the 6 year rule

However it may be worth a chat with another whole of market adviser just to get a second opinion and see if there may well be other options available

HTH