Credit rating & mortgage application?

Sennen101

Hi All,

A newbie here, hoping for a bit of help.

My partner & I are shortly looking to apply for a mortgage, but I'm concerned that my partner's credit history may cause us some problems.

Basically he has 2 defaulted accounts - both late payments. One was nearly 6 years ago & the other 2 years ago. The only problem he's had in the last 2 years is that he's been over his credit card limit, although has kept up all payments correctly. We've paid all his debt off in the last couple of months.

My credit history is fine, no issues at all.

Do you think his history is likely to make it difficult for us to get approved for a mortgage?

In terms of what we are looking for it's a 90%LTV mortgage for almost 4 times our joint salary. We have the money for deposit & stamp duty, etc all ready to go.

I realise that all lenders differ, but a general opinion would be great, before we make an appointment with our financial advisor.

amnblog

is the default more than 24 months or under 24 months ago?

Sennen101

It's over 24 months (just)...apart from the issue of being over his credit card limit, which was only 3 months ago.

amnblog

You will need another 5% deposit to get a mortgage - and you will need a broker

Sennen101

I have a broker that I used for my last mortgage.

That was exactly what I didn't want to hear - do you really think there's no hope at all with only a 10% deposit?

amnblog

What has your broker said?

Littlepink

Could you have the mortgage in just your name? This is what we've done as we knew my history wasn't perfect and my husband has just been offered a 95% from halifax

Sennen101

I haven't been to see the broker yet, was just wondering what people's thoughts were. We're making an appointment to see our broker shortly.

I don't earn enough on my own to get the required mortgage.

Jbc

I was speaking to a broker today regarding a bridging loan and mentioned that my husband's credit report shows he had a default registered to him from a bank account overdraft for £300 (we disagree with it so are writing to the bank to query it and ask them to remove it). The broker did mention that if we were looking for a residential mortgage and had a default with a bank within the last 6 years, we would have had no hope of getting a mortgage. Luckily we aren't looking for a residential mortgage just now, but it is a worrying scenario.

Weirdly, his credit score on Experian and Equifax shows as Outstanding, even with that default (incorrectly) showing. Every lender scores differently though, so who knows?!

ACG

Jbc - your broker is either rubbish or pulling a fast one. You can get a mortgage with a 3 month old default in certain circumstances or 2 years in most! To say you need to wait 6 is wrong and if he genuinely believes that hes in the wrong game.

Sennen - this will be very much hit and miss. The default would fit with 2 lenders. Going over the credit limit could be enough throw it out. If 15% is not going to happen within the next 6-12 months then I personally think you have nothing to lose by giving it a try. But I would speak to a broker to ensure you are going to the right lenders.

Sennen101

Thanks. I'll see what my broker says. If it's a no go, I think our only option is to look for a cheaper house under the £250k mark, so that we can use the money we'd saved for the extra stamp duty to put down an extra 5% deposit on the cheaper house.