Mortgage with Poor credit rating

Chezza30122007

Hi

I would really appreciate some advice/guidance on an issue I have.

Me and my partner are looking at buying an house together but I'm worried with regards to my Credit Rating.

I have two defaults on my rating, both satisfied in 2009/2010.

I have conducted my accounts good since these. But rating still showing poor. Even though all the accounts are upto date and have been since 2010. I have no loans, only thing I owe is £300 on a store card and a credit card.

I know alone I would have no chance of a mortgage, but hopefully the following will help with a joint application:

My partner has an excellant credit rating with a 50% mortgage on our current home. 50% equity.

We have a 67% cash deposit for the new property so will only need a 33% mortgage.

We both have full time jobs earning £42k a year combined.

The only debt my partner has is his mortgage which when we sell the current property will be paid off.

Please can someone advise me on whether my rating will be a problem with the size of the deposit and how much we want to borrow?

Thanks in Advance

Dave_Ham

Hi - from the information provided you will definitely have a solution.

The skill and information require is what effect your credit score will have on rates.

When were the defaults registered?

Chezza30122007

The defaults state on my credit report were satisfied in 2009 and 2010.

My partner wants to use the high street lender he has currrently got his Mortgage with.

Thanks

Dave_Ham

There will be a default date on the credit file.

With your limited credit and the defaults, it is unlikely you will get through the credit search for a high street lender.

Worth you getting your Experian and Equifax reports certainly, who is his mortgage with currently?

Chezza30122007

I do see my Equifax credit report regulary. Default date on first one is Jan 2010 but date states satified Feb 2010. The other was December 2009 and settled in January 2010.

His currently mortgage is with the Halifax, and like I said he has at least 50% equity in that one and it will defo be a 67% pure cash deposit on the new property.

Thanks

Dave_Ham

Halifax are one of the more lenient lenders, although with limited credit file information and 2 defaults this is unlikely.

Given your loan to value and OH previous good relationship, you may get lucky.

Declare everything and ensure OH is put as applicant 1.

Good luck

Chezza30122007

Even though both defaults are satified and paid off?

Shoul I pay the £300 off my credit and store card? Would that look better? Pay them off and close the accounts. I only have 6 active accounts on my credit file and all of them are upto date with payments and none are listed as payment late or anything.

He will be put as main applicant and he could borrow the money by himself but we want to purchase together.

Thanks for your help

Thrugelmir

Chezza30122007 wrote: »

We have a 67% cash deposit for the new property so will only need a 33% mortgage.

What's the purchase price of the property. As its the amount you wish to borrow that may influence the outcome.

Chezza30122007

We will be borrowing 60K against a purchase price of 180K

Dave_Ham

Your credit situation cannot be improved significantly by paying items off etc.

It pretty much is what it is; given your loan to value and assumed strong credit score for your partner, you may be able to creep through.

A default is a significant issue from a lender perspective as away from the emotions of the situation, a credit agreement missed for 3 months + consecutively is always going to be frowned upon.

Good luck

Chezza30122007

Thanks Dave.

He does have a strong rating. Like I said, only has a mortgage, and if he uses his credit card pays the full balance every month.

Fingers crossed I will be able to get through.