FTB / HTB Advice Please

yllah

Hi all,

New to these forums however have been reading a lot of them of the recent weeks, just wanting some advice and opinions really please.

First all, thanks to all who have taking time and commented of other people situations as I have been able to relate to a lot of those. Here we go:

Me and my girlfriend are looking to apply for a mortgage towards the end of this year, around September time. We are looking for a house on HTB equity loan scheme around 115k or either get a FTB mortgage for around 90k, putting down 9k deposit so LTV 90%.

I earn 23k a year and my girlfriend earns 19k a year. She has had poor credit over the years such as 2 Pay Day Loans and a few missed payments, all of these are around 2-3 years ago. Since then this has massively improved especially within the last 12 months and she now has no debt at all, no loans, credit cards and no overdrafts.

I have a Personal Loan outstanding however this will be paid off with the next month as I am going onto a car scheme with a friend who works at a car manufacturer meaning I will sell my current car. This does not go onto my credit file though as I just start paying £190 a month by standing order to his account.

I haven't had squeaky clean credit either, I had 2 Pay Day Loans in Jan 2012 which were settled, have had a loan and credit card since but all settled. Once the personal loan is paid off I will be completely debt free also, no overdraft, no loan and no credit cards.

Therefore to summarise, when we go into a mortgage application later this year we will be debt free and will have roughly 10k saved. The only worry I have is the historical data on the credit file, mainly the Pay Day loans - can anyone provide me with examples, stories or opinions around whether we would likely be successful?

Also, I take it paying off my loan this month is an advantage? Even though the £190 outgoing on my statements will affect affordability? (However I do think we are well within the affordability criteria as the figures quoted about)

Everyone's advice, opinions and comments are much appreciated.

Thank you

yllah

Also I do have an overdraft of £1300 but don't ever use it. Should I can this facility? Help anyone? Lol

panzer_pure

when i had a broker sort out my mortgage she was very insistent about have we taken any payday loans out/online gambling as it goes against you quiet badly

yllah

Thanks. Used to gamble online but stopped a few months ago so i'll make sure I don't right up until the mortgage so nothing shows on bank statements.

Just worried about these pay day loans really.

Also want to know if overdraft should be cancelled since I dont use it

andyfromotley

i wouldn't worry about the OD you have plenty of income for the mortgage and the OD.

Your problem may well turn out to be the PDLs, i have read that lenders quite rightly see them as a sign of financial last stop and have read that they just auto decline anyone with these on their records for the last x period. I don't the details and it may be baloney. i guess you'll just have to apply and see.

Your right to keep your bank accounts super clean for at least the 6 months before application, but obv that won't resolve the PDL situation.

yllah

Thanks for the advice Andy.

I'm hoping because they are over 3 years old that there is a lender out there that will still offer a good rate. I'll be gutted if this stops us from getting a mortgage together.

And I think i'll just cancel the overdraft, isn't used and like credit cards you should probably cancel them if they aren't used.

andyfromotley

For some reason i keep seeing Nationwide mentioned for only worrying about the last three years, (i have no idea if this is in relation to PDL's).
Perhaps your best bet would be to wait for one or two of the excellent mortgage brokers who post on here see this, they will probably know how lenders treat these.

yllah

Yeah I noticed that Andy.

I signed up to Equifax and Experian at different points last year for the free trial and without being completely certain (bad memory), I don't think the pay day loans showed in the closed account history.

However I signed up with Call Credit/Noddle this week and they showed up in January 2012.

I've read in the credit file forum that Nationwide seem to only use Experian to do the credit check, however there are potentially a few lenders who don't use CC to complete the credit check.

I'll take this into account when going for a mortgage later this year however i'm sure the broker I speak with will be able to work their magic.

yllah

Calling any brokers - can you give me any advice in regards to the payday loans? Although over 3 years ago I am still worried about them.

I have viewed both my Experian and Call Credit reports and both have the PDL's recorded. (Need to check with Equifax now)

If they didn't show on Equifax would I be better off maybe applying to a lender who is known to possibly just use Equifax for there credit searches?

Thanks in advance

amnblog

Your profile does not lend itself to the offering of H2B EL scheme lenders.


No more gambling, and no more PDLs before you apply - at which point consult a broker.