Advice appreciated

xxmisslimberxx

Hello,

Myself and my fiance have recently found out we are having a baby. My parents have given us a gift of £35,000 as a deposit to put down on a house of our own.

We have found a lovely place for £160,000. My salary is £26,000 and my partners is self employed but his most recent tax declaration thingie shows a profit of £14,000.

My partner has excellent credit history (according to equifax, experian etc) lots of previous credit (loans, credit cards etc) all with immaculate payment history.

My equifax credit score shows "fair". Everything is excellent or very good except two defaults on my file. One was a mobile phone contract which was a geniune error on my part which was settled in 2011. The other was back in 2009 and was settled then also.

My partner has a couple of active credit cards but these could be paid off if necessary.

I am really worried reading/hearing that the two defaults on my credit report may mean we cannot get a mortgage at all.

Has anyone had any experience with this? I am seeing a mortgage broker at the weekend but want to be prepared for the worst.

Renting would end up costing us more than buying would where we live, so it is important that we get some sort of mortgage.

We are both in our 20's and a mortgage advisor over the phone (london & country) advised me that we could go for a 35 year mortgage which will make repayments cheaper each month (I understand it will be more overall) I spoke to her before knowing about my two defaults though... so didnt mention this.

Any advice/thoughts/similar experiences would be very much appreciated

Kind Regards,
Georgia x

Crashandburn

There are lots of positives with what you have stated but key will be size of the defaults. Lenders are aware of the keenness of mobile phone companies to register defaults and some ignore the default if its below a certain figure (and the rest of the case is strong). Mobile phone companies are the new Britannia Music (now I showing my age!)

There will be a solution at that loan to value but key would be try and keep it within the high street lenders.

Good luck

ACG

What is the purchase price?
If the deposit, is around 15-20% plus, then there could be options available.

xxmisslimberxx

Thank you both so much for your replies!

We are going to offer 160k but realistically the vendor prob won't take anything below 165k so we will have over 20% deposit still.

The amount for vodafone was under £250 and the one years ago (orange) even less than that.

Quick extra question... I pulled my credit report from equifax, that's where I got the "fair" rating. I did experian today and got an "excellent"?! The default is showing but my score was 990 and they rated me as excellent? Any ideas?!

Also, why keep to high street? I thought we would have more chance with a "back street" lender lol

Thank you again for your replies

Crashandburn

xxmisslimberxx wrote: »

Also, why keep to high street? I thought we would have more chance with a "back street" lender lol

Meaning make the broker work for his money! It will fit on non high streets quite easily I would imagine.

But with the size of the defaults, a good broker should be able to get the deal with a decent high street name which means lower payments.

ACG

when were they registered?

I think you will be fine with this, but its worth going via broker as you could spend a long time on this and not get very far.

Also forget your score with the credit agencies, a glass hammer has more value.

xxmisslimberxx

Ok thank you again. I thought we would be lucky to get offered any kind of mortgage. If the broker suggests going through non high street lenders I can suggest that we try high street first

xxmisslimberxx

ACG wrote: »

when were they registered?

I think you will be fine with this, but its worth going via broker as you could spend a long time on this and not get very far.


W are going through London & country as I've heard they are very good? & the defaults were 2011 and 2008 both settled pretty much straight away.

JimmyTheWig

xxmisslimberxx wrote: »

Quick extra question... I pulled my credit report from equifax, that's where I got the "fair" rating. I did experian today and got an "excellent"?! The default is showing but my score was 990 and they rated me as excellent? Any ideas?!

Credit reports are brilliant things to have. They show you what defaults, etc, you have against your name.

Credit scores from credit reference agencies are pretty meaningless. All they show you is what that particular credit reference agency thinks of your credit report.
As you have found, different organisations use different criteria. All that is important is how a londer rates your credit report. No lenders look at the equifax/experian scores.

Experian_company_representative

If the defaults are repaid and over three years old they probably wouldn't have much of an impact on your Experian Credit Score at all, which is in line with many lender's scoring systems. These tend to focus on your most recent credit history and current debts. However, what some systems may do is set policy rules around past defaults, so they could still be a factor in credit decisions even though they might not be in the score. We are updating the advice on our website around this issue to provide more guidance.

James Jones

Vodafone

xxmisslimberxx wrote: »

The amount for vodafone was under £250 and the one years ago (orange) even less than that.

Hi xxmisslimberxx,

Whilst I naturally can't guarantee the outcome I'd be happy to get this matter looked into further for you.

To enable me to do this could you email me with your details via the link in our profile here?

All you need to do is copy and paste the link into your web browser and it will take you to the Contact us form on our website.

To ensure that it reaches me could you also quote the code WRT135 - MSE in the subject line and once our automated reply arrives update the thread with your email reference number and I'll get back to you as soon as possible?

Kind regards,

Lee

Web Relations Team

Vodafone UK