URGENT - Mortgage application - one fair credit rating and one good/excellent

jojo79_2

Hi

My husband and I are currently in the process of applying for a joint mortgage.

Historically I have had problems with debt however all of the debts are now settled and I have an experian rating of 735 (fair). I have checked experian and equifax and there are no defaults showing on my file. The only remaining debt I have is a credit card with £3k on.

My husband has a good/excellent rating.

We are applying for a mortgage with a 20% deposit and I am just concerned that my fair credit rating can jeopardise our application.

Can anyone please advise asap?

Thank you

Dave_Ham

Do not worry about the ratings and commentary Experian/Equifax provide; they are worthless.

If you have no defaults and cleared debt, so long as not ongoing missed payments and with a 20% deposit I would suggest this will be fine.

Obviously if you are hunting the top, top rates at HSBC, First Direct, Post Office, Brittannia etc. then you may get a knock back although other lenders are likely to be available.

leereni

What are your historic debt problems?

jojo79_2

Thank you.

Dave Ham, from what I can see on my report, the only issue is my total lending as my credit card is near it's limit but that is the only debt I have, apart from my overdraft. Do you think the fact my husband has a good/excellent rating would work in our favour?

jojo79_2

Leereni

My historic problems were loans which fell into arrears although these are all over 6 years old and have been settled in either full or part payment.

My more recent loan was with Everyday loans which had a high interest rate. I didn't miss any payments and this loan was settled in January.

Dave_Ham

Yep, should be fine; ensure he is first applicant

jojo79_2

Thanks Dave

Obviously I realise we wouldn't necessarily be able to apply to the top top rates but do you imagine we would be penalised and have to with a higher rate interest?

Dave_Ham

Nah, just fair rate mortgages with a standard bank..

jojo79_2

Thanks Dave

I've sent my advisor a copy of my credit report so I'll guess we'll just have to wait and see now.

It's such a horrible situation and I completely regret all my mistakes from my youth!

jojo79_2

Hi Dave

It looks like we're trying to get a mortgage in principle through the Leeds Building Society.

From your experience are they normally quite fair in terms of a low credit rating?

Thanks

Dave_Ham

Leeds have great rates, although are selective and can be a bit of a headache with their processing.

Your broker will have all of the information so on that basis I imagine you either trust them and go for it, or not.

It would be unfair for me to give you a personal opinion on the Leeds selection, without all of the facts..

Fingers crossed and they do have competitive rates.