is there any hope?

louie6925

Hi guys and gals,

Looking for any advice on our chances of a mortgage. We have offered a property on a shared ownership scheme (we do know the bad points and have fully researched this) and now just need a mortgage.

The property is worth £280,000 and we want to buy a 50% share worth £140,000. We have around £22,000 savings but need to consider keeping £5000 aside to cove costs of everything, so really only have just over 10% deposit.

The broker working on our behalf tried for a 5% mortgage of which we were declined. I checked my credit report and to my surprise it is quite bad (1/5) on noddle, I have never missed a payment nor had any ccj's, but what does show up is late payments on my mobile phone. These payments are played at the end of each month although the bill date is the 17th, Orange were happy with this arrangement and never suggested it would effect my credit. Other than that I have a loan worth £2000 that now has a balance of £800, I have paid this off on time every month for nearly 2 years.

My partners credit score is good with only one late payment 4 years ago in a loan which finnished a year ago. I'm a firefighter on £29,500 p.a and also have a small biz that generates an average £5/600 a month, my partner earns £24,000 p.a.
It feels because of my credit we won't get a mortgage. What would be the general feeling among you guys? If we don't get an approval we will lose the offer of the house, time is of the essence and looking for any advice possible.

Thanks in advance for your thoughts

Louie6925

ACG

So every month you basically have a late payment with orange?

You need to speak to orange an get this rectified otherwise you wont be getting a 85-90% mortgage either. At best i would say about 70-75% and that would be on a pretty high rate (5-6%).

louie6925

Would orange rectify this though as technically the payments were late?

Caladan

If Orange gave you the impression paying at the end of each month would be perfectly acceptable then I don't see why they cant make a positive data request and get the missed payments removed.

If it was made clear to you the payments would be counted as late then you probably don't have a leg to stand on unfortunately.

Give them a call, can't hurt.

ACG

Speak to orange and ask them, put a complaint in if they dont - see where you get.

But all of this takes time, at least a week or so for them to investigate then a couple of weeks for it to update on the credit reports etc You could easily be best part of a month down the line before everything has been updated.

JC509

it helps if u could pay off all the remaining loan as it would boost up ur credit rating if ur debt free. This is a personal experience, my credit rating was poor due to many reason, my MA told me to pay off all the credit card and loan. My credit rating has change from poor to good.

Good luck!