Chances of actually getting a mortgage?

voodooqueen69

Brief history: I signed a trust deed (Scottish iva) in Nov 2007. A culmination of illness/relationship breakdown and change of job resulted in me being unable to keep up with my debt repayments (remnants of my student days) and this was really my only option. I was fully discharged after 3 years with all payments being met. Since then I have built up my credit using catalogue and mobile contract and have never had a balance carry over to following month or late payments. Experian still show trust deed and quite a few have not been updated to mark satisfied or correct default date (currently in dispute) however equivalent is all marked as settled except one and trust deed is not showing.

Husband earns approx £37k just been promoted and will now receive double that, however is a temporary worker (been with same company for 3 years as ongoing basis). I don't work as care for my disabled son but receive carers allowance.

We have put an offer in for a house under the assurance from HBOS that they would give us a mortgage only for it to be declined during an audit (of all the luck, I believe we were an A pass as no further documents were required at application). A broker has suggested trying the Woolwich. I'm well aware I should have waited until the credit reports were sorted and defaults removed in November however with HBOS insistence we went and found a house!

We're first time buyers btw.

Cost of house: £174000
Deposit: £50000
Savings: £85000 (don't want to touch this)
Debts: £1700 credit card (0% apr till next August but can be paid off)

I would be really grateful for any advice. I'm a realist so I know we are a very complicated case. Realistically what are our chances?

HappyMJ

I would wait until November then your chances are almost 100%. Adverse credit does scare the underwriters away so once the adverse credit markers are gone they think you are perfect and will lend to you.

_Andy_

"for it to be declined during an audit"

What was the reason for the decline?

voodooqueen69

They said it was "undeclared debt at another address" however the only debt I ever had was linked to the trust deed and was all declared at application (and mortgage promise). The branch are appealing as they also agree it was all declared and can't understand why it's not gone through. Gave them copies of trust deed, discharge, list of creditors included and a copy of credit report explaining the link.

Thrugelmir

By audit, are you actually referring to the underwriters?

voodooqueen69

I take it was the underwriters but the MA said it was going through but then it had to go for review. She said about 1 in 12 of straight forward apps get picked up for review. (I never thought our application would be straight forward giving our circumstances). I assumed underwriters would have looked at it regardless.