Planning for the future - Mortgage with arrears in the past

polarbear12

I’m keen to get an idea if a mortgage at high street rates will be a possibility for us in the future. We live in London so property is expensive and we’d ideally like to trade up to a house in the future (currently in a bed). Would like a sense of how realistic this is going to be and if we’re doing the right things to get us there,
Equity in current flat about £170k-200k which would be used as a deposit – proposed borrowing up to £350k max (realistically we’d need to borrow most of this to find a suitable property). Having looked at a few “what can I borrow calculators” that take into account outgoings this looks doable.
The concern is my husband’s credit history.
Breakdown is – serious mortgage arrears in 2010 but completely up to date by July of that year. Mortgage is interest only and we’ve been significantly overpaying (would clear long before the term if we carried on) for the past two years+). However there is late payment markers for two consecutive months in 2012 – again around May / June. No issues since.
There is also a credit card account that was being reporting as an arrangement to pay in husband’s name – paid off in October 2013.
No outstanding credit commitments at all (limit on affordability is childcare/ commuting costs).
So my question is what chance do we stand of a mortgage at high street rates given all of the above? This would be in October 2016 onwards (so AR markers over 3 years old). Are the arrears / late mortgage payments going to exclude us totally – especially given the arrangement to pay markers? Would a high street rate mortgage look possible in the future or would we be to consider downsizing and using our equity to buy something with a small bad credit mortgage?
Appreciate I’m asking you to project into the future but I’m just trying to get a sense of how we can plan for the future so appreciate your ideas/ input!

polarbear12

sorry that should have been - currently in a two bed flat!

amnblog

You have been doing a number of things to put off the 'High Street' lender and arrangements to pay and mortgage arrears are not the kind of issues they like to cater for.

An application next year seems unlikely to go 'High Street'.

Whatever you plan, don't plan to miss anymore payments on anything.