FTB with ropey credit history

Worried_FTB

Hi,

I was hoping to get some advice on our chances of being accepted for a mortgage with one of the high street lenders with a slightly ropey credit history. I’m a natural worrier and have convinced myself that we’re going to get outright rejected because of my credit history whereas my partner has blind faith that our pros easily outweigh the cons.

We’re looking to borrow around £245k with a maximum LTV of 88% (nothing fancy but according to the BBC today we are looking in the UKs second most expensive area to live). We have a good combined income (£65k gross ) so not pushing the affordability barrier, long-term steady jobs (1 media and 1 qualified accountant), both on the electoral register and been at our current address for nearly two years. No dependants either.

Does anyone with a similar history have experience of being accepted by lenders such as HSBC, First Direct, Halifax etc? Or is it straight to the broker for me?
Credit History details below:

The bad one (Me):
One credit card which is used for petrol and paid in full every month, one 0% balance transfer card with a balance of approx £1300, I pay off more than the minimum every month. I could use some of the deposit fund to pay this off if it would help, have been avoiding doing so because I get a decent rate on my ISA.
I’ve had a mobile phone contract running since 2006. Over the years I’ve had a few different credit cards which I’ve never missed a payment on and are now settled.

I also had a loan for £4000 which I paid off two years early in 2012.
I’ve never missed a payment/made a late payment on any of the above.
Now, onto the bits I’m worried about:

Littlewoods account. One late payment on a balance of £24 dated June 2013. Payment less than 30 days late. Account now settled. (In my view this is catastrophic)

Natwest credit card, 3 late payments dated August 2010, December 2010, February 2011 on a balance of £2000. Payments were less than 30 days late, account now settled.

The good one (Partner):
One credit card which is paid in full every month. Never had any loans. Has a big overdraft facility but hasn’t used it since 2009.

Any help much appreciated!

afly

Straight to a broker I think, though thats no bad thing.

From what I've heard some of the lenders you've listed (HSBC, First Direct) can be very strict so I'm guessing little chance there. Can you stretch the LTV to 85%?

ACG

In the main you will be fine, the main problem is how recent that late payment is. I would let it update on your credit report for 1 month before making an application just to be safe but aside from that i dont think you will have major problems.

As already mentioned, avoid the likes of hsbc/first direct. It migh still be worth a chat with a broker though.

amnblog

Worried_FTB wrote: »

our pros easily outweigh the cons.
QUOTE]

Lenders don't work like this. A late payment on the file is what it is.

If the lenders system does not accept them you will be a straight decline with that lender.

Get some advice from a qualified and experienced mortgage broker and put your mind at rest.

Going direct to the 'First Directs' of this world and getting a rejection wont help your mindset any.

Worried_FTB

Thanks to both of you for the advice.

We could possibly push the LTV to 85% with a little bit of luck/effort.

I have also considered putting off buying for another 6 months or so, but I'm not sure how much difference the additional time would actually make to the late payment. It would make it much more likely that we would have a 15% deposit though.