Will we get accepted for a 5% with settled defaults?

saving2704

I've had a mortgage before and have a decent credit rating - no defaults or anything. My partners credit rating isn't so great. No CCJs but defaults and debts that have been escalated to collectors (but no real action taken to recoup).
All these debts were paid off in full very recently and we are saving like mad for a deposit.
What's the chances of us being successful in a mortgage application fir a 5% mortgage in May/June on this basis?
Any advice welcome!

ACG

I dont know how to sugar coat this so i will just be straight, your not going to get a 95% mortgage with multiple defaults only recently satisfied.

When are the defaults dated? could they potentially fall off the reports soon?
Have you looked at all 3 credit reports? Are the defaults on all 3?

I think your chances are slim at best, but if you can answer the question about the credit reports and when the defaults are dated that may change.

saving2704

ACG wrote: »

I dont know how to sugar coat this so i will just be straight, your not going to get a 95% mortgage with multiple defaults only recently satisfied.

When are the defaults dated? could they potentially fall off the reports soon?
Have you looked at all 3 credit reports? Are the defaults on all 3?

I think your chances are slim at best, but if you can answer the question about the credit reports and when the defaults are dated that may change.

We've only had an experian report so far. His overall score was really good (959/999) but the defaults were listed. My score was 999/999 and no adverse credit. Would my credit rating not help his?

This is a bit of a nightmare - because if we make a joint application and get turned down on his credit will it damage my rating?

Senior_Paper_Monitor

CRA scores are completely meaningless - they are not seen by the lender. The lender looks at the data content.


Experian scores are particularly meaningless in our (considerable) experience - frankly as demonstrated by 959 for your partner with defaults and debts transferred to collectors, even if several years old.


To give you an idea of how tight the requirements for 95% are, I quote our Business Development manager from Virgin Money (not necessarily the most generous of lender criteria but fairly typical) at a meeting last week ... "absolutely no late payments in the 6 year record"

ACG

As above, credit scores are worthless.

If you make a joint application then you will become financially associated (if you are not already - this will be on your credit report under Financial associations). I dont think its a case of if it gets declined.

You have to be pretty much perfect to get a 95% mortgage, a late payment can be enough to throw it - a default is worse than that.

Wozza85

Default you will struggle. I got accepted for a 5% at the moment with some pay day loans but was told if I had a late payment or default it would have been an immediate no. So a default is really bad!

saving2704

Thanks for all your help. Looks like we'll be renting for a while!