Mortgage issue

Rico84

Hi all

Am looking for some advice from a mortgage broker or other guys who are more clued up than I on the subject.

My partner and I are FTB's and have found a house we are interested in, price is £165k and we would need a 69% LTV mortgage. We jointly earn £60k (better half more than me).

I unfortunately have a Default on my credit file from BT from back in 2009 for around £280 which has recently come to light. Will not bore you with the details. The other half's credit file is perfect, so it's just me letting the side down.

We have a £240 PM loan repayment and there is also a monthly train fare of £430 into work - plus the usual bills.

Does anyone who knows about these things think there is a chance of a joint mortgage or is the other half going to have to apply on their own and I'll just squat in their house?!

Appreciate any help.

Rico.

ACG

EDIT: Sorry ignore my first question if youve seen it. I missed the LTV bit in your post.

See a broker, this wont be a problem at all. Ive got something similar going through at the minute for a client of mine albeit a bigger default (Over £2k) at a rate of 3.44%.

RobHolyhead

Me and my wife are trying to apply for a mortgage for a second home whilst renting out our current property, we went in to our bank last week and were refused because me and my wife have 3 late payment notices on out credit file adding up to £13.70 in total.

To make things worse 2 of these are not our fault as the company sent out invoices late!

Just a warning to how strict the banks have become, but usually if your clean for 12 months you'll be fine!

bigadaj

RobHolyhead wrote: »

Me and my wife are trying to apply for a mortgage for a second home whilst renting out our current property, we went in to our bank last week and were refused because me and my wife have 3 late payment notices on out credit file adding up to £13.70 in total.

To make things worse 2 of these are not our fault as the company sent out invoices late!

Just a warning to how strict the banks have become, but usually if your clean for 12 months you'll be fine!

But the differenceis that you have a minimal deposit.

OP you have a large deposit so should be fine even with a little adverse credit, ultimately skin in the game means the banks risk is considerably reduced, a fall in house prices will not leave negative equity after all.

ACG

bigadaj is right. The deposit makes the difference, 10% and you have little to no slack with adverse.

25% plus and you would need a lot more than a £280 default from 3-4 years ago to stop you getting a mortgage.

RobHolyhead

bigadaj wrote: »

But the differenceis that you have a minimal deposit.

OP you have a large deposit so should be fine even with a little adverse credit, ultimately skin in the game means the banks risk is considerably reduced, a fall in house prices will not leave negative equity after all.

While I'm sure the OP will be fine, not that i said they wouldn't be, I was refused on the basis of a 25% deposit!

Rico84

Thanks ACG.

I know it's probably hard to say, but does that apply to the big, mainstream lenders (thinking Nationwide here) or smaller more specialist ones? Just looking at their website and they mention that you need a good history. The other half would obviously be the main applicant, is the second applicants history just as important as the firsts?

bigadaj

RobHolyhead wrote: »

While I'm sure the OP will be fine, not that i said they wouldn't be, I was refused on the basis of a 25% deposit!

I'm not having a go but your deposit is not actually a deposit on a single house, as the negative equity on your current property needs to be factored into the equation.

ACG

Both of you get credit scored.
Every time i do an application, i check the criteria that lenders are working to as these can change over time.
Im not nationwides biggest fan at the minute (but thats a whole different story).

If nationwide is who your looking to go with, go and speak to one of their sales people/advisors and ask what the criteria is with regards to adverse. I think you might be ok with them - but dont take my word for it. Otherwise if you speak to an actual mortgage advisor they will be able to look at more than just one lender.

Crashandburn

I'd find a decent broker.

There are some 90% LTV high street lenders that will allow adverse up to £500 as long as the rest of the score is strong, and I mean very strong.

Recently seen a 90% deal, with a default in Jan 2013, offered in 3 weeks with a 2 year fixed rate under 4.5%.

There is hope. Good luck.

saverbuyer

RobHolyhead wrote: »

While I'm sure the OP will be fine, not that i said they wouldn't be, I was refused on the basis of a 25% deposit!

You said in a post yeaterday you have NO deposit.

Make your mind up.

http://forums.moneysavingexpert.com/showpost.php?p=60085717&postcount=35