First Time Buyer

MarkT1

Hi all, I am looking to buy my first property in a few months time, and am after a bit of advice.

I have paid off all my outstanding cc and loan debt, and closed all but one account (cc - 1750 limit - no balance) leaving me with just two buy now pay later agreements - total payment a month £80 and both will be paid off by April 2016.

I earn approx 48k and am looking to obtain a mortgage of around £200000 and will have a deposit of around £21000, so just under 90% ltv ratio.

The concern I have is that a few years ago I (very stupidly and not realising the consequences) took out a number of payday loans and everyday loan - the last payday loan was in June 2014 with no more since then. I have also had bank charges around Christmas time but have now cleared my overdraft. My experian rating is now at 920 and there are still quite a few records to be updated.

I am intending on applying around about May/June time for a mortgage, and will use a broker, however was just after some advice from people to see if there is anything else I can do in the mean time, and also to see if you think I stand a chance of being approved for a mortgage? I currently bank with nationwide.

Thank you for any comments and help you can provide.
Mark.

MarkT1

Hi All, I have now paid off the two buy now pay later agreements, meaning that I now have no outstanding debt at all. I am awaiting the updates to my credit report, however my score is now showing as 981 on Experian. I was just wondering if anyone could advise on my likelihood of being accepted?

I have also had a 'soft' search AIP accepted with Natwest, does anyone know how accurate these 'soft' search AIP's are?

Thank you very much for any comments or advice you have.

amnblog

Last June is not a 'few years ago'.


You will find this PDL history is a problem for some Lenders with 10% deposit.


I see from another thread you are seeking a broker - this is the right approach.

MarkT1

Hi, thank you for your response. I will definitely be seeking the advice of a broker to give myself the best chance of a mortgage I can. I am hoping that not having any debt now, and my monthly rent being about £100 more than the monthly payment values from comparison sites I have looked at will offset the payday loans in the past. I honestly didn't realise they would have such a negative effect in the future when I took them out.

Do you have any experience with the soft search AIP and how accurate it is?

Thank you for your help.

amnblog

There are a lot of discussions on here about 'soft search' AIPs and how accurate they are.


I refer you to the eggs and omelettes analogy.


In order to make an omelette you have to break an egg.


In order to get a mortgage offer you have to have a full credit search completed.

MarkT1

Understood - thank you. Fingers crossed it all goes well, just getting the last of the deposit money together then will be looking to apply at the end of May via a broker.

Dave_Ham

Just a heads up, if the pay day loans show on Equifax; Natwest will decline the application

Best of luck

MarkT1

Hi Dave, they are showing on Experian, but I am unable to see them anywhere on Equifax. Do Natwest use both of these, or only Equifax? Thank you.

kingstreet

Dave_Ham wrote: »

Just a heads up, if the pay day loans show on Equifax; Natwest will decline the application

Best of luck

You may find this interesting;-

https://forums.moneysavingexpert.com/discussion/5192719

MarkT1

Thank you for the link Kingstreet. It seems that they did not do a full in depth search on Experian in that persons case, will be keeping my fingers crossed for when I apply in a couple of months, just need to get the last bit of deposit together and the three months bank statements and I should be good to go. Thinking about it, and everything which could go wrong constantly!

MarkT1

Sorry - one more question.. My mobile phone contract runs out at the end of this month, would it have an effect if I renewed my contract soon, or would it be best to switch to a sim only deal once it expires and renew the phone once I have made the mortgage application? I know its best to avoid searches, but does anyone know if they will look at a mobile phone as a negative? Thank you.