95% LTV with late payment mark?

sdh2903

Good afternoon all,


Me and my fianc!e have just found a house which is in budget and fits our needs perfectly, we had intended on holding off until we had a 10% deposit but this maybe too good to pass up.


The house is 215k, we will have a deposit of 11k plus 5k for fees and duty etc.


Me, I earn 60k with only 1 credit card with £1200 balance, otherwise clean credit file with several settled accounts.


My fianc!e earns 10k, has 1 credit card with £1000 on, no other debt but has a couple of (1) late payment marks for a store card/catalogue, one was 3 months ago and one was over 2 years ago, the account was paid off and closed last month.


As its a 95% LTV I appreciate we will have to appear squeaky clean but are the late payment markers going to have an adverse affect??


We were looking at the 3 year fixed deal with Clydesdale bank which also seems to beat my local brokers best deal.


cheers
Steve

Wozza85

The one that is 3 months ago may be an issue. Could you possibly get the mortgage solely in your name?

Broker time. Find one and pose the questions to him or ask in branch before hand?

somethingcorporate

On that sort of money it shouldn't take you long to get a reasonable deposit together which will help your ability (and be significantly cheaper).

kingstreet

On which version(s) of the credit file do the late payments show?

If you have a clean version, your chances will be improved by matching your application to the lender which uses data from the CRA with the clean credit history.

Wozza85

somethingcorporate wrote: »

On that sort of money it shouldn't take you long to get a reasonable deposit together which will help your ability (and be significantly cheaper).

I don't think saving the money is the issue, its that the house they want is on sale now and they only have the 5% at the moment, if they waited til they got to 10% it could be gone.

somethingcorporate

Wozza85 wrote: »

I don't think saving the money is the issue, its that the house they want is on sale now and they only have the 5% at the moment, if they waited til they got to 10% it could be gone.

Except having more deposit = less risk for the lender.

I appreciate what you are saying and most FTBs think that "the" house is actually the only one for them.

Having bought a bunch of houses in my life I've realised there are actually lots of houses out there I would be happy in and patience really is a virtue when it comes to house buying, especially if you have financial issues such as recent defaults (I would imagine).

sdh2903

Yes the house is the dangling carrot in all of this. We are not blinded by the FTB starry eyes though and know there will be others however the market in this area is quick to say the least


Its valued at 230k and we know we can have it for 215k ish as we know the vendor through a friend of a friend, so yes time would be of the essence as they are keen on us buying as we are chain free and not currently tied to our rental property. They have been burned by a couple of supposed buyers in the past few months.


As far as we have checked they show on all the CRA's although we haven't checked Experian yet, just Equifax and noddle. The late payment marks were factual so no grounds to dispute them, one was during a family bereavement and the recent one a dopey mistake.

Wozza85

Personally I would wait but then if you feel it's your dream house then it could be worth trying? Or if you have any family members that could borrow you the additional money?

Have they had much interest in the house?

sdh2903

A fair bit of interest. A few people mucking them about and one buyer who was thwarted post Mmr. House lies in a very good school catchment so property tends to move very well.

Couple of questions.

If I was to do a sole application would it not look fishy as we are financially linked through a joint account.?

If we were to wait, at what point would the late payment mark have less an effect? Are we talking months or years?

Thrugelmir

sdh2903 wrote: »

They have been burned by a couple of supposed buyers in the past few months.

Then you need to find out why.

People don't give away discount on their properties unless they have to.

sdh2903

They are waiting to move, simple. They have been abroad (husbands in the army) they have got their kids into a private school up in glasgow as well as the mum has a job there too and they are getting fed up with the commute plus they want the kids to be near their pals. We actually know the people who rented the house for a couple of years so know the house and it's quirks very well indeed.