Please help! I think I have no chance in getting a mortgage...

Lottie120

Hi everyone,

I am in a bit of shock right now as I have just discovered that my partner has 2 defaults on his credit expert report. One was in 2012 for £500 and has been settled and one has just shown up in April 2014 and the outstanding amount is £560 and it will be settled this month in full. I have also discovered that he has taken out numerous payday loans and pounds to pocket loans and one of them he has missed payments for. I think his credit scores around 610 which is classed as poor.

My credit history is good and I think my credit scores around 930. Our combined salary is £45,000 and we have a deposit of £70,000. I thought we had a good chance of getting a mortgage but these recent findings have shocked me and now I am so worried as to if and when we will get a mortgage?

I was hoping for a £250,000 mortgage with assistance from the help to buy scheme. Can someone please advise me on what our options are? Could we still get a mortgage if we have a high deposit? Do we need to wait the full 6 years to get a mortgage now or will any lender take into account my high deposit and be willing to lend to us? How much mortgage could we obtain, is £250,000 too high?

Many thanks in advance.

Lottie120

Come on people 22 views and no help.....

haras_nosirrah

Why is he getting pay day loans without telling you? Especially when you have 70k in the bank.

Any chance of you buying smaller on your own? How much is your salary and where has the deposit come from?

To be honest your partner sounds like a financial liability and I would not be joining myself to him financially until he can prove he is bettee with money

k3lvc

Ok I'll jump in

1) why do you need 'help to buy' if you've already got a £70k deposit ?
2) why the payday loans if you've £70k in the bank ?
3) £180k on a £45k joint salary is going to be tough

stephenni1971

A default 2 months old and history of payday loan use... honestly you don't have a chance of a mortgage with him onit.

kingstreet

I agree. A default in April 2014 will mean you have no chance of a "normal" mortgage any time soon.

You may wish to speak to a broker who will tell you what's possible and when, after an analysis of your full circumstances.

If you are paying for these "credit scores" stop as they are meaningless and are not seen by lenders. Obtain your statutory credit file from all three CRAs and put them in front of a broker so the full picture is visible.

Lottie120

Well because its me that has the 70k, I had saved up for a while with a little help from my parents.

So is what you are saying that even after several years I do not have a chance of a mortgage? I am not saying I want a mortgage now, I have no chance of that. Can we apply after a few years if he keeps improves his credit and pays off the outstanding payday loan?

How much can we borrow with 70k with our joint income then?? What if I saved more deposit? Do I stand no chance at all even with a hefty deposit? What about after 2-3 years?

ACG

Help to buy is for people with a small deposit...you have no need for help to buy.

20% deposit, and let that default age to 1 year and you have a chance. But make sure he stops with the pay day loans.

Lottie120

Thanks for the replies so far.

I don't intend on getting a mortgage now but what I am asking is will I have a chance in 2-3 years time? By that time the defaults will be older and we will have even more deposit.

Even though he has had payday loans, if he keeps his credit clean from now on and improving his credit score do we have a chance in getting a mortgage? Does a large deposit help in these situations?

Mortgage_Mark_2

To give an idea on how lenders view this - Kensington, an adverse credit specialist lender, will decline any applicant with a default registered in the last two years...

Lottie120

Thanks Mark. Would I be able to apply after 3 years then? If so, would I still have to go through specialist lenders and not normal high street banks such as Halifax, Nationwide etc?