Mortgage confusion!

Concernedmark30

Hi all,

Ok so I'm going lay it on the table with the hope of some advice

My wife and I are soon going to be upsizing and buying a new house. So mortgages are a hot topic in our house at present. In order to prepare myself for our meeting with the mortgage broker I thought it would be wise to check out my credit file. I checked with the main two (experian and equifax) the first showed a score of 999 and the 2nd 'excellent'! So far so good! I then remembered that last year I took out 2 stupid loans with wonga (one in May and Aug) both for £100 - the most annoying thing here is I was so stupid and should have just got an overdraft but because it was only for 2/3 days before payday for some reason thought this would be a better option! Anyway apart from that major blip I have had no issues on my credit file and don't no currently have any debt whatsoever nor does my wife (except for our Mortgage).

my question is will my wonga mishap ruin my chances of getting a mortgage? My wife doesn't know about my faux par and I'm bricking it that when we go we'll be declined!

Sorry to go on! I appreciate any advice you can give.

Thanks in advance
Mark

PixelPound

You will most likely need to tell your wife, and the broker will be able to choose lenders where it isn't an issue.

Concernedmark30

Thanks for that , I'm sure you're right and I will have to tell her about it which will no doubt go down like a lead ballon! From the mortgage side of things how frowned upon is it? I seem to read mixed things! I assumed that I would just be a complete outcast for most lenders! Thanks again

Malmo

In order to prepare myself for our meeting with the mortgage broker I thought it would be wise to check out my credit file. I checked with the main two (experian and equifax) the first showed a score of 999 and the 2nd 'excellent'! So far so good!

The scores are irrelevant as lenders don't see or use them. They evaluate customers based on their own criteria and scoring algorithms, so don't pay any attention to the consumer scores marketed by the credit agencies. What matters is the data itself.

my question is will my wonga mishap ruin my chances of getting a mortgage?

You will have options available but lenders generally don't like to see short term lending like this in the past 12 months.

My wife doesn't know about my faux par and I'm bricking it that when we go we'll be declined!

I would suggest informing your wife before you meet with the broker as you'll need to declare this to your broker anyway. A good broker will be able to find a lender for you but I would suggest being open and upfront about past financial circumstances as a priority with your wife. I'm sure she'll understand if you articulate yourself in the right way.

Concernedmark30

Thanks Malmo seems logical to me! that Its nice to know I'm not a complete no no for a couple of silly mistakes! My otherwise good history would out weight this I would hope! The latest of the two will be 12 months old in August so maybe I should wait until then before I speak to a broker to increase my chances!

Thrugelmir

Concernedmark30 wrote: »

Thanks for that , I'm sure you're right and I will have to tell her about it which will no doubt go down like a lead ballon! From the mortgage side of things how frowned upon is it? I seem to read mixed things! I assumed that I would just be a complete outcast for most lenders! Thanks again

The obvious question from a lenders perspective. Is how sound are your finances. The fact that you resorted to a PDL indicates that you are financially stretched. That you had no savings at the time. Would only take one unforeseen event to blow your finances totally off course. With the amount of data now available is possible to profile potential borrowers fairly accurately with people falling into distinct categories.

Concernedmark30

I agree and I should have used savings but I was stupid! My mind is in over driver thinking about all the potential outcomes and trying to workout how the lenders will view me! What I'm worried about is jumping the gun and trying too soon! I know it's not wise to try lots of different lenders so I'm inclined to wait for the 12 months of my payday loan and then speak to a lender! I checked equifax and there's no record of it!

Malmo

Concernedmark30 wrote: »

I checked equifax and there's no record of it!

It is worth registering with Noddle (Callcredit's free monthly service) aswell to cover all the bases and have a full view of your credit profile.

It may be that your broker recommends a lender that only searches Equifax and/or Callcredit if the payday loan doesn't appear on those reports.