Chances of getting a mortgage

kelp7

Hi,

My partner and I have just had a mortgage promise from Halifax. We have a great LTV (mainly due to my partner's savings over the years) of 70% for the property we're looking at. We passed Halifax's initial soft searches with an 'A' apparently. My only worry is that I have a 'thin' credit file. We realised this might be an issue a few months ago so I took out a Cashplus credit card and went with the creditbuilder option to get something on my file. I now also have a mobile contract and that's been ticking over nicely. Just checked my experian report though and they score me at 720 'poor'. Can Halifax turn round after their proper credit search and reject us? Would you normally get rejected on the basis of a thin credit file? My partner's credit file is impeccable... so hopefully that might help, though the mortgage application is only in my name now as my other half no longer works and looks after our 14 month old (plus we also got more salary multiples from just me on the mortgage app). She is, however, a financial 'link' on my Experian report. Any answers / advice very greatly appreciated!!

Thanks

ACG

Your doing a Mortgage application in your name solely but using your partners savings as the deposit? You might want to change it to a joint application.

Forget the score, its worthless. But in answer to your question, halifax can decline at app stage. Halifax only do a soft footprint, at AIP/DIP stage so a full credit check may reveal something else.

kelp7

ACG wrote: »

Your doing a Mortgage application in your name solely but using your partners savings as the deposit? You might want to change it to a joint application.

We can't. We initially applied as a joint application but found that Halifax simply wouldn't lend us enough money. We can't stretch to an extra 11,000 pounds just to have my partner's name on the mortgage. However, it's all affordable (and in fact exactly the amount we need, luckily) if it's just me on the app. We were told we can change names on the deeds at a later stage (at a cost later on).

ACG wrote: »

Forget the score, its worthless. But in answer to your question, halifax can decline at app stage. Halifax only do a soft footprint, at AIP/DIP stage so a full credit check may reveal something else.

I thought the score might not be particularly worth anything, just wanted to hear someone else confirm that Thanks. I just wondered really if having a 'thin credit file' might be a reason for rejection. There's nothing bad on my credit file, no defaults, CCJs or anything else. Just a couple of items (credit card and mobile phone contract) which are ticking over nicely (all marked green / satisfactory).

Thanks

ACG

I dont know what Halifax stance on the first bit is, but i dont think they will allow a single application using your partners savings as a deposit. She would have to sign a gifted deposit form to say its a gift without reservation - but no lender would accept that as she will be living in the property.

As for the thin credit file, so long as there is a little bit on there it shouldnt be too bad.

kelp7

Thanks for the advice. The deposit is fine, she is down as a 'dependant' on my application and yes, they'll accept a letter saying she's putting the deposit down as a gift. The main worry was the thin credit file really but thanks for re-assuring me on that one! I guess with our good LTV we should be okay!