Referred ! Help !

whunt18885

Ok so hopefully someone can help as I am freakin out!

My GF and I want to buy a house for £110k - Nothing special just a boggo 2 up 2 down terrace. She currently owns an apartment which has been sold STC for £86k - She owes £57k on the mortgage so a nice bit of equity left.

We went to see our mortgage chap at TSB to basically go through the numbers - We would be porting the current mortgage over and then adding additional funds under a joint application (both of us) for the difference. We will be holding back £5k of the equity and the rest put towards to the new property.

So long story short after all the numbers were crunched we were effectively borrowing around £80k. He ran through the credit searches and we got a score of A3 (it goes A1,A2,A3 right down to D after that its a flat our rejection).

So with the above in mind we were happy that this was a good score however he mentioned that it needed to be referred to the underwriters and could not go straight through.

I am worried as in the past I have made a few late payments and used sporadically Wonga which I know was a stupid decision but not much I can do about it now - I have been super careful and not used any laons companies etc for 2 years.

My Credit score according to Checkmyfile.com is around 740-750 and depending on credit agency it either shows 2 late payments or 4 late payments and 1 default payment.

For ref our combined income is £31k, the mortgage advisor has said despite the referral we are good for up to £160k so in terms of amount we are asking its a fraction of the amount we could borrow.

The other concern is that just recently we have come back from hols and when we were abroad the banks were on strike so we could not cash or travellers cheques and I ended up using my credit card - so whilst my credit card is within 80% of its £3k limit now this will be significantly reduced on my next payday but this is not for another week.

Should I be concerned ? For the record my GF has a perfect score with not 1 single bad entry - I know they will look at the application as whole but any advise would be much appreciated.

Should also add that despite my credit indiscretions from a few years ago I have no CCJ's nor do I have any insolvency notices. We are both on the electoral register and have had 2 addresses in the last 5 years.

whunt18885

Should also add that my parents have offered to act as guarantor (they have a £250k house paid off in full) so i know we could put that in place and there would be no issues at all - My only concern is that they are under the impression that our apartment is jointly owned by us and not just my GF. I have not lied I have just never chosen to correct them in the past and ideally I don't really want them to know that the apartment owned by my GF. If they are guarantor's will they see the details of all of this or is that still kept private ? i.e do they just sign a form that says if we fail to pay a £80k mortgage then they could lose their house ?

Thrugelmir

Few lenders will consider a guarantor these days. Certainly not as simple as just having equity or other assets to underwrite the proposed borrowing with.

Being referred to the underwriters is nothing unusual. All applications pass through underwriters at some point.

If you had travellers cheques why haven't you cashed them in to repay the debt. Waiting until pay day suggests it's not as straightforward as you suggest.

Dave_Ham

Out of everything the default is your biggest issue. I am not a massive TSB fan as they are still ironing out processes and criteria for me, but will remain objective.

When was the default dated, how much for and is it satisfied?

whunt18885

On equifax it shows 4 late payments for phone bills from 2/3 years ago (which I am disputting - all for less than £20) and a default from 2 years ago for less than £100 however equifax just has 2 late payments from 2012/13 respectively. With regards to the traveller's cheque these have been put back onto my card but given that it takes about 5 days for payments to appear it will be AFTER the refer team look at my finances. I am trying to remain positive as I know they look at the application as a whole and we have lots of good points (both on register / Misses has perfect score and proven TSB mortgage history / Our joint income is high in relation to what we want to borrow etc) also if there was a major concern with our credit then why would they give us a A3 rating and offer us up to £160k ?