Please advise me what to do now, me and my wife are really suffering.

lanren77

I'm on tier2 visa which has 4 years left. My wife is my dependant. I have a salary of 31200 and she has 20000. We have 90k deposit and we have applied for help to buy equity share. The house price is 388000. We need to borrow 220400.

Since our case is a tricky one and the only lender is Halifax.

The problem is I have bad credit. I have three defaults, two satisfied and 1 in dispute. The total amount of the three is 800 pounds. My wife has a perfect credit score. Do we have a chance to get the mortgage?

Kapaxiana

I'm no expert from my experience I would say you have too many things against you. I managed to get a mortgage with a high street lender habing 3 satisfied Defaults but let me tell you that is was not easy!
In your case I would say that the fact that you only have 4 years left on you visa will be the deal breaker.
But like I said the above is just my opinion so I could be wrong.

kingstreet

The loan to value takes care of the visa issue, so forget that.

It's the default registration dates which will be the problem. If more than three years old, the case be accepted, it may not.

There is no way to second-guess Halifax credit scoring system. Cases you expect to pass fail and cases you expect to fail, pass.

This is going to be pretty tight on affordability. Assuming a 25 year term, affordability takes into account £194 per month (3% of the equity loan) plus any dependents, ground rent & service charges and credit commitments you can borrow £229,500 as you are capped at 4.5x income.

You are also close to breaching the HTB calculator and it won't take much existing credit to take the application above 45% debt to household income if you do have credit or service charges.

lanren77

very appreciate to your advices!

I am waiting for my experian, call credit and equifax reports.

hopefully they haven't registered my defaults on experian and equifax reports and I can get away with it.

Thrugelmir

lanren77 wrote: »

hopefully they haven't registered my defaults on experian and equifax reports and I can get away with it.

These are the two main credit agencies.

Who were the defaults with?

lanren77

Thrugelmir wrote: »

These are the two main credit agencies.

Who were the defaults with?

I default with orange 118 (defaulted for more than 5 years and paid 2 days ago),
three 302(defaulted for more 5 years ago. I phoned the customer service and they can't confirm with me at the moment, I'll ask them to write me a letter),
Lloystsb 300(5 years ago, I won the case in the court as they can't provide any evidence to prove that i owe them money)

I have seen my credit score on Experian...

It's a clear score and there's no problem with it..

882 out of 999

But on the report they say they have only my latest 2 years address on it and they want me add all of my previous addresses, then I added all of them. The score remains same? Is it real time or does it need some time to update?

On the report it says:

I have 3 positive factors:
The average age of your credit accounts is 56 months.
Your total non-mortgage credit balance is £0.00
You are using 1 non-mortgage credit account

I have 1 negative factor which is Electoral Roll. Well my nationality is not British of course I cannot register to elect.

and I checked that halifax is using Experian not callcredit from http://www.moneysavingexpert.com/credit-cards/credit-reference. My mortgage advisor said Halifax is using CallCredit. I am confused..

Does halifax use both or just one credit score agent? If just one, which one??

So I guess the reason that halifax is putting our application on hold is because of my credit score is lacking of evidence rather than the defaults because there're no default son my Experian account.

Am I too optimistic or am I day dreaming?

Please advice me.

Thrugelmir

lanren77 wrote: »

Lloystsb 300(5 years ago, I won the case in the court as they can't provide any evidence to prove that i owe them money)

Halifax is part of the same banking group. Whether this will have an impact or not is uncertain. Though finance houses like elephants tend to have long memories.

lanren77

Updates for my situation.

I phoned another mortgage advisor from London and Country and they seems optimistic about my application to halifax. But they said I need to pay the mortgage evaluation fees in advance.But this is different from what my current mortgage advisor told me..

I'm very confused...

Do I need to pay the upfront evaluation fees?

lanren77

updates..

My application was declined by halifax..

But the guy from London and Country wants to do another one..

is the new application gonna be declined straightaway as the previous one has been declined? Is it worth a try or not?

Kapaxiana

Sorry to hear your application was declined. don't lose hope, you need a good broker that is all.

as mentioned in previous post I have defaults in my credit file. First broker applied with first direct which later I found out is a very picky lender, needless to say it was declined. ThEn we tried 2 other lenders in the matte of 5 months.
I went to a different broker that was recommended by a friend and he liased with natwest and we got the mortgage in November.

lanren77 wrote: »

updates..
My application was declined by halifax..

But the guy from London and Country wants to do another one..

is the new application gonna be declined straightaway as the previous one has been declined? Is it worth a try or not?

andyfromotley

try and find a broker who specialises in adverse credit. it may cost more but will probably help