Judge my credit History

webinteractions

Hi All,
We are FTB, what are our chances of getting a joint 95% mortgage for 170,000? we would liek a 35 year mortgage and then over pay. Should we use a broker. We are currently saving with nationwide with the help to buy savings account.

Our deposit is £9400 (5.2%) contributed by 3,500 Family Gift. 3,500 Relocation package from work and 2,400 saved by both of us. I have always had debt and know how to play the credit card 0% game. I have had debts of 8,000 at the peak but will be completely paid off by the time we apply.

ME 30 years old.
Salary: 32500.
Employment: 6 years at same job.
Electoral Roll: Registered at previous address and will be registered 17th feb at a known previous address.

the adverse credit markers taken from equifax (score of 449 which means nothing, i know).
Egg Card - Arrangement to pay for four consecutive months starting February 2009.
Vodafone - 1 late payment May 2008.

Outstanding Credit:
I have been in my 1000 student overdraft for years. My wages have always covered this every month but would be overdrawn at the end of the month. This will be paid off in full before applying.

5 year loan at 13,000 - 220 a month. 2.5 years left to pay outstanding balance of around 6000.

My Partner 29 years old.
Salary: 21,000.
Electoral Roll: Registered at previous address and will be registered 17th feb at a known previous address.
Employment: little over 2 years.

Adverse Credit Markers:
Natwest - One month late in April 2013 with Natwest.
Overdraft, same as me. Student overdraft always in it but will be paid before mortgage applications.

No outstanding credit.

Sorry for such a long post!

amnblog

Cannot see you getting 95% with that credit history. Definitely not with Nationwide.

webinteractions

Thanks for your reply!

Just to add to this as I have received my Experian report to check if this egg 'Arrangement to Pay' is noted on there. It is not! Every month is marked green. ( I can't remember this arrangement to pay, i know i would not have paid a reduced amount or asked for interest to stop). I might have to investigate further as to why this is on my credit report!

But does this help our position in anyway?

Brock_and_Roll

To get a 95% mortgage these days you have to have a squeeky clean history.

From the perspective of a bank's credit officer, not only have two employed people only managed to save a deposit of 1.4% of the purchase price, but there are pre-exisitng debts and some bad markers.

Lending 95%, a bank will almost always lose money in a default scenario so the "what ifs" are very relevant. What if the couple separate? What if one partner fall ill or gets pregnant etc? The credit history would appear to indicate that even when "times are good" there is some financial stress.

webinteractions

Hi Brock and Roll, thanks for your reply. It's certainly an interesting view on our finances. When the missed payment/arranged payment occurred i was a student earning peanuts!

I understand how only saving a couple of thousand for the house could look lazy. All our spare money has gone on clearing the CC and outstanding student overdraft facilities. We want to have a clean slate before having a mortgage.

bsms1147

Be patient, pay off your debts and build a bigger deposit. If the debt is going down it's only a matter of time before the deposit fund goes up.

Wozza85

Could be worth speaking to a broker, there has been worse cases accepted! You never know. I don't think there are many people completely debt free that apply for mortgages these days! Couple of missed payments may hurt you more than actually having the debt. Having debt is one thing, not being able to manage and pay it each month is another

Thrugelmir

Continue to save /and or repay your debts. That loan must consume a fair chunk of your monthly income as well.

Opting for a 35 year term will do you no favours. Majority of the early years will be spent paying interest and very little capital. Look on a mortgage as a marathon not a sprint. Far better to go with a 25 year term. At least you've room for movement. Should you suffer a reduction in income for any reason however temporary.

dazla

Be very very wary of playing the 0% credit card game as eventually the ability to keep shifting to 0% will stop. This is what happened to me and I am now on a dmp. Just don;t rely on this facility always being there.

webinteractions

Thank you for your replies.

Given that there are a few of you that suggest we may have difficulty getting a 95% mortgage. I will send a subject access request to Canada Square Operations (who are the people who will deal with the Egg issue) and view all the data they hold on me. This will determine whether i try my luck with a 95% mortgage (if they fix it) or save for 10%.

The other issue I have on my account is the late payment in may 2008. If i'm correct this would drop of the credit report this year?

By this point, we will probably be in a better position anyway just like one of the posts above recommends - be patient and save more!

Vodafone

Hi webinteractions,

You're correct in saying that the late payment recorded by us in May 2008 will come off during May this year.

Kind regards,

Lee

Web Relations

Vodafone UK