Credit rating affecting mortgage applications

missmortgagehunter

HELP!
My partner and I are looking for a mortgage for a shared ownership property, we are first time buyers. My partners credit score is 'excellent', mine is now 'good'.

We went to a mortgage advisor at the beginning of the week to make a mortgage application with a 5% deposit. We got rejected due to 'adverse credit' which neither of us were aware of. On investigation, I noticed that my credit rating was low with 2 missed mobile phone payments, an outstanding balance and flagged as 'barred'.

Since then, my mobile phone company have agreed to remove this information. I logged in today to find that the outstanding balance has been cleared and the account is now 'live' not barred.. my credit score has jumped up by 100 points and is now 'Good'. They have not removed the missed payments however.

Is there a chance we would get accepted with a 10% deposit on these terms? Or would it be worth its weight in gold to chase up the mobile company to remove the missed payments too.

SavingEnthu

You might need a couple of months of good credit behavior before re-attempting... Just to give it time to rebuild.

I understand old missed payments remain for about 5 years (?).. (unless of course its a mistake on their end that caused it, but if not, there is not much you can do about it).

About the impact of this on mortgage applications -- Depends on the bank really, and how they see your overall profile.. its not ONLY about the credit score.. having a higher deposit will certainly help improve your application..