FTB Have we ruined our chances of Mortgage?

set

Hi Everyone

Hoping someone can help. We have been speaking to a broker from L&C We are after a £90 - £95k mortgage. £5k deposit. We were not even looking at buying our own place but got some money so could use this as deposit. The thing is about 5 weeks ago OH applied for 0% 36months balance transfer CC from Halifaxcredit limit £2K & we transferred £1940 onto it. I have CC £5k limit £1050 balance. We have been on experian and my score is very good. and OH is poor. We have no late payments/defaults etc its just this ruddy credit card thats done it. Broker said he was looking at mortgage with halifax anyway so hopefully they will accept us.

We havent found a property yet but dont want to keep looking if we wont get accepted. Are we better waiting 6 months? I will only get 24 year mortgage next year due to age. OR if we find a property now and get rejected would we have a problem in 6 months time?

Hope this all makes sense, Im in work so have had to type this really quick. Thanks guys

set

Forgot to add, credit file was fine before this. Would never have applied for it if we knew there was any chance we were going for a mortgage. :-/

libf

I doubt that one credit card application, which was approved, will have a huge impact if there are no other negative factors. Your broker will be able to pick a lender which matches your circumstances.

set

Thanks, hope so. total debt is OH 1940 cc and me 1050 cc that's it, don't owe anything else. Absolutely nothing else on credit file other than the cc application few weeks ago.

Just need to find a ruddy flat now!

Jon_B_2

Without being a party pooper, you basically only have a £2k deposit with that credit card debt. I'm no expert but I'd find it hard to believe you would get a 95% mortgage with that.

Duckyduck

I disagree with the above, it's done on affordability. Can you afford the repayments on the credit card + the mortgage paymet + general living costs, and will that still be true if rates increase. One credit application for a relatively small amount shouldn't make too much difference, but that also applies to the credit report. Scores usually take a bit of a dip when a new card is applied for, but it's unlikely it was go from very good all the way to poor just because of that. Does OH have a poor history or been applying for several cards over the past 6 months-1year?

TravelBugHappy

Yes but where did the £1940 balance come from? & is this contributing to the 5k deposit - if it is then lenders won't like that much

set

Hi

The 1940 on 0% card came from my card so we didnt have to pay any interest. £5K is in ISA. OH has nothing on credit file. The 3 red flags that came up for him were all to do with this card.
1 Application for credit in last siz months
2 You do not have enough revolving credit on this card
3 Limit on card is £2K balance is £1940

pjread

Zero history won't go in your favour either. I'd just suggest to make sure the broker has all the facts, they should be able to say how plausible this is to place.

set

Sorry, my fault. I meant he has nothing to go against him on file. no defaults / late payments etc. Good credit history well up until now

ViolaLass

Duckyduck wrote: »

Scores usually take a bit of a dip when a new card is applied for, but it's unlikely it was go from very good all the way to poor just because of that.

Your credit 'score' is irrelevant - lenders calculate it for themselves. All that matters is whether the info on your file is correct.