Anyone Want to Play Broker for Me?

gemnomnom

Hi all,

My husband & I are looking to get a mortgage at some point in 2015. At the moment, he has a default of £233 from June 2013 which has not been satisfied. Is there any chance at all of getting a mortgage with an outstanding default? Or is it worth biting the bullet and just paying it off so it shows as satisfied?

And I'm aware of some lenders make allowances for satisfied defaults around the 3 year mark. Is this 3 years since it was satisfied, or 3 years since the account went into default?

I know we need to speak with a broker - however I am unsure when to approach one. Realistically we won't be buying until November 2015 at the earliest, but we want to start preparing now. Would a broker give advice at this early stage?

Some background info (if anyone wants to play broker) -
His salary: £18,500 (set to rise to £20,500 in November, after 18 months employment at one place)
My salary: £17,500 (in Nov, I'd have 15 months employment)
Our deposit: £4,000 now, £8,000+ by November
House value: £80,000
His credit record: 2 defaults, one due to drop off in November
My credit record: No defaults, on electoral roll, several well managed accounts
Address history: 12 months currently, however, only registered on electoral roll since Dec 2014.

We are also considering just applying for a mortgage in my name. I would have to apply for a better paying job, and possibly wait to build up time spent at one employer before applying. I also only turn 21 in March 2015 - I'm not sure if age is a barrier when applying for a mortgage. My husband will be 40 though (!) When applying for a solo mortgage when married, do they take into account your partner's income? And do they credit check them too?

As you can see, there are lots of variables, so any advice would be much appreciated!

ACG

A lot can change between now and november but theoretically it could be possible yes.

If you intend to try with high street lenders showing it as satisfied will improve the chances - the longer it has been satisfied generally the better.

There are some lenders who have slightly higher rates than the high street but are more likely to accept you with defaults (satisfied or not).

Get all 3 credit reports before seeing a broker - if the broker does not ask for all 3 reports, I would suggest finding another as they can make a difference.

Some lenders do not like doing sole applications for married people, so that will impact who you have available. His age should not be a major barrier.

There are a lot of potential issues here although nothing that stands out as making me think you have absolutely no chance. It may be difficult but not necessarily impossible. If you can get to 15% deposit im sure that would help to some degree.

gemnomnom

ACG wrote: »

A lot can change between now and november but theoretically it could be possible yes.

If you intend to try with high street lenders showing it as satisfied will improve the chances - the longer it has been satisfied generally the better.

There are some lenders who have slightly higher rates than the high street but are more likely to accept you with defaults (satisfied or not).

Get all 3 credit reports before seeing a broker - if the broker does not ask for all 3 reports, I would suggest finding another as they can make a difference.

Some lenders do not like doing sole applications for married people, so that will impact who you have available. His age should not be a major barrier.

There are a lot of potential issues here although nothing that stands out as making me think you have absolutely no chance. It may be difficult but not necessarily impossible. If you can get to 15% deposit im sure that would help to some degree.

Thank you for your reply!

Looks like we will pay it off. Do you know if there is a way to negotiate with the DCA about how much we must pay? I'm sure they've added fees etc. to get to the figure of £233. I think in a past letter they offered us a 20% discount in exchange for updating his credit report to show 'partially satisfied'. Would that be acceptable on a mortgage application, or must it be fully satisfied?

amnblog

Unless you want to shoot yourself in the foot, don't be cheap - pay the default off.

As it is you will struggle to get 90% lending with a default that recent.

gemnomnom

amnblog wrote: »

Unless you want to shoot yourself in the foot, don't be cheap - pay the default off.

As it is you will struggle to get 90% lending with a default that recent.

We are hoping to go for a 15% deposit. Do defaults stop being viewed as recent after the 3 years?

Also - we do not want to pay more than necessary. If we can pay a % of the amount, but still get the CRF to show as fully satisfied, then we will want to do that.

ACG

Defaults are viewed differently from lender to lender.
Some ignore after 2 years, others after 3, others not until it drops off your report.
Some will ignore if under a certain amount or to a certain type of company (mobile phone defaults for instance).

I wouldnt get too bogged down with all of that at the minute as you are nearly a year off and things can change.

I would pay off the full amount, is it worth an underwriter being concerned for the sake of £50?

amnblog

Your husband has a debt of £233 on which he is trying to delay or avoid payment.

Don't be surprised if this is taken into account when you try to borrow £76,500.