Chance of success? mortgage application with virginmoney with 1 overdraft arrears

tulips

I was about to go and ask virginmoney for a mortgage but having done an online credit report/history check I have 1 settled arrears from 2008 (background: I emptied a current account that had a monthly fee, forgot the fee which then spiralled overdraft charges until I persuaded Alliance and leicester to let me off the 575 quid that had accumulated in 3-4 months).

I also have one late payment in 2007. The mortgage is roughly 3.9 times salary and I require a 70% ltv mortgage.

So does anyone know what virginmoney are like when it comes to bad debt? I'm a first time buyer and now worried sick

tulips

Other info I have checked this morning.
The arrears is listed on all three CRA with status '3', settled in May 2008. Experian also refer to it as delinquent.
Other possibly pertinent info: property is a leasehold flat and mortgage required is 225k.

Dave_Ham

What deposit do you have (as a % of purchase price)

Virgin are not the most flexible with adverse credit history, although in your favour is the historic nature and that they only marked as arrears and not default...

Will be tight to call and may well depend on the other details of the case and overall risk.

Be mindful where the flat is and that not close to any commercial properties, as again Virgin are not necessarily that flexible here..

Good luck

tulips

Thanks dave.

30% deposit.
Flat is in a 3 storey (wholly residential) 1970s block of 12 flats. It SW london so commercial prop never that far away.

Dave_Ham

Strong deposit, London is a different market-place flat wise...

Do not think Virgin are best priced at 70% loan to value, but would think you will be ok if income, employment, deposit source are all neat and tidy...

All the best

tulips

Thanks, I'll go see them and keep my fingers crossed.
As for virgin I like the security of a 3 year fix (5 is too inflexible though!) and their 70% ltv 3 year fix is 2.39% + loads of fees.

(my other reason behind 3 years is that, barring a major correction to prices, I should be able to get to 60% ltv come remortgage time with some modest overpaying)

tulips

Incidentally do are any high street lenders tend to be flexible with adverse credit histories?

tulips

The chap from virgin money made lots of lemon sucking noises about the arrears so I did not risk the credit footprint DIP check and will speak to a broker first. Fingers crossed there is something out there.

Conrad

Halifax tend to be the easiest in my experience but as ever the only honest answer is that I cannot tell whether they will accept you or not as these things are driven by software algorithms and Human underwriting so of course are impossible to second guess.

Failing this you might try some of the sub prime lenders, off the top of my head - Kensington, GE Money, Melton, Aldermore but note they will tend to want Bank stats and this is just quick off the top of my head.