Mortgage Help

Blondygirl

Hi All,

I’m after some advice please. We have just been turned down by First Direct as they found adverse credit on my Equifax report from 4 years ago. We knew it was there but since then everything has been clear & my husband has banked with them for a long time, so we though with his good record & the fact that we have a LTV of 58% they would be happy but obviously not. We also though that they just checked Experian, where my record is completely clear but turns out they checked Equifax. Below are the details, please can anyone advise if we would be able to get a mortgage at a good rate? We have sold our house & had an offer accepted on another one @ 346K. We would like to borrow 200K so we have a deposit of 146k, 140K coming from the sale of the house(solely in husband’s name) & 6k from our savings.

My husband is 44 & earns 33,400K & I’m 36 & earn 22,085K we are looking at taking it out over 30 years if they will lend to 75 as we would work until it’s paid off. We can do it over 25 if needs be but was looking to take over 30 years on a 5 year fix to start with & then reduce the years down later.

Ok so my credit record, I’m waiting on my Experian one to come through the post as had a free trial so can’t get another one. When I looked in Jan it was completely clear no mention of the defaulted account, just good stuff on the 2 credit cards I pay, car finance I had which has been fully paid off since last July & mortgage payments each month. It did give me a score of 999 which I know does not mean anything.

I have copies of my Callcredit(Noddle) & my Equifax reports which still show the defaulted account to HBOS. The last default registered on my Callcredit report was April 09 & it was a red DF6 it then shows the account was PS Partly settled in July 09. The Equifax report shows this differently in that the DF6 is there but the last entry was in 08 & is shown to be settled in 08. As said my Experian report is completely clear & does not show this account at all.

To further complicate things I suppose is that I have a mortgage on another house that is let with ctl. The mortgage payments are interest only @ £356pm & the rental income is £500pm although I pay a £60pm management fee to the EA so I get just over £70pm clear on it.

We have no other debts what so every & just use our credit cards to pay for food & petrol every month & they are fully paid off each time. We both have excellent conduct with our banks & have never touched overdrafts. We wondered if we would be ok with Nationwide & was looking at their 5yr fix at 2.99% as I believe they only search Experien? Would we be safe to apply to them? Do we need to talk to a good broker, or have we had it? If we have no chance we need to know as already said we have sold our house & had an offer accepted on another & we gave the EA our AIP from First Direct to qualify our offer.

My husband’s credit record is completely clean & he’s never had any problems. We have already had searches done with FD, so I know we need to get this next one right. Sorry for the long post but thought it was best to give as much info as possible.

Thanks in advance.

GMS

When was the default and for how much? Are you making monthly payments?

A broker would be a good idea on this as you have seen the rejection when applying to the wrong lender.

ACG

I dont doubt for a minute you can get a mortgage, but the likes of First Direct, HSBC and the lenders with the stricter criteria are going to be out.

I agree with GMS, probably worth a chat with a broker, but as i say i wouldnt worry about getting a mortgage its just a case of finding the best rate you can get with the adverse.

Blondygirl

Thanks GMS & ACG for your replies.

To answer your questions GMS the last default registered on Callcredit was April 09 & it was partly settled in July 09 according to them. The default balance according to the report was 4062K although payments were made down to 3570K & it was settled with a payment of £849. This settled the matter & they agreed there would be no further action, so i'm not making monthly payments to it as it's all been closed off.

Thank you for your help.

Blondygirl

Hi,

Do you think rates like the Nationwide's at 2.99% would be available to us? Do Nationwide have less stricter criteria?

Thank you

ACG

Without seeing your credit file and knowing a bit more about you its very difficult to say.

I would say you have a better chance with nationwide than first direct... but im not saying they will accept you... im sitting on the fence :P

If your not sure, speak to a broker. Give them your credit files and let them use their knowledge.

Blondygirl

Thanks ACG, we will have a look for a good broker in our area I think.