Credit impact on mortgage application

dpclark

Hello, Three years ago my partner and I decided we wanted to buy a house but both our individual credit ratings were appalling and we were advised to clean them up before even bothering to apply. Since then we have paid off £12,000 of debt and are now debt free, and neither of us have had any defaults or late payments for over two years. However, both our credit scores are still very low with Equifax, Experian and Noddle - presumably because of all the pre-2012 rubbish which hasn't fallen off yet.

We recently inherited a large sum of money, and along with our savings have around £80,000 towards a deposit. Our landlord is going to sell the house we live in now imminently - he has given us until the end of May to make an offer or it will go on the market and we will have to move out (the house has been valued at £120,000). We would love to buy it, but we are worried that we would be turned down for a mortgage and don't want to undo three years of hard work with a failed mortgage application. Does our large deposit make us any more likely to be accepted? Or should we look to rent somewhere else for a couple of years until we are confident a mortgage application would be accepted?

Any advice would be hugely appreciated.

kingstreet

There is no record of "a failed mortgage application" other than a search, like for any other application, successful or not.

Pay no attention to the "credit scores" and put the credit files in front of a broker and see what they can do.

A decent deposit and three years from your last credit negative and you'll probably be at high street rates. Anything within the last two years and it'll probably be a specialist lender.