Newbie... But have a Q!

robbie2305

Hello - I am new to the forum and wanted to get some advice really.

I apologise in advance if there's rules here I need to follow or if I have posted this in the wrong place.

Basically, my partner has a mortgage. He only has £48k left to pay. His flat is on the market with offers of £235k.

He and I have reserved a plot at a new development for a house costing £335,000.

After we have paid off his car loan etc, we will but putting down a deposit of £150,000. And will require a mortgage of £185,000.

My partners credit history is sound, with an 'excellent' credit score. My credit score is 3 points away from excellent, however my credit history is a little more complicated.

When I was younger, I wasn't well educated on the impact of reckless spending and ended up in a debt management plan. Most of my defaults have come off my credit file, leaving only 2 (both 5 years old). My spending behaviour in the last 5 years since then has been absolutely fine with ZERO defaults or missed payments.

However when we started this process, I got my credit file and a Halifax credit card (one of the defaults) was showing 'satisfied' instead of 'settled' on my credit file - when I called them to enquire about this... They said I owed them £67.

When I had completed my debt management plan in January 2014 - I was under the impression that I had paid off all my debt to Halifax and that the the account was settled. I paid the £67 immediately and the account became satisfied. However this was only 6 weeks ago.

In the process of buying this house together, my partner and I have visited a broker who said the only mortgage we would get would be with Aldermore, who have astronomically high interest rates. She said Halifax declined an AIP and that there was nowhere to turn.

My friend who works for Lloyds told me to try an AIP with them, which I did and this got accepted! Good news I thought.

However now we are about to start the full application and even the Financial Advisor at the new development says our chances are very small. According to her, the defaults are fine but the fact I only settled the unknown debit with Halifax in the last 2 months will really go against us.

I am now incredibly stressed and I'm having sleepless nights. My partner is so unbelievably excited about our prospective new property and he's living up in the clouds...absolutely certain that Lloyds will accept us. I am confused that Lloyds accepted our AIP when Halifax didn't, even though the have the same under writers?

If anyone can offer me any advice or indeed some calming and reassuring words that we might have a shot at this, I would greatly appreciate it.

Sorry for the lengthy post.

Robbie

Thrugelmir

Both organisations won't directly have the same underwriters. Halifax may well have declined you because of instantly accessible prior history. LLoyds (who own HBOS) will conduct further checks at a later stage. Whether your historical issues will count against you under their current internal lending policy is the unknown factor.

In general it's worth trying to avoid applying to lenders where defaulted accounts have ended up in a DMP. There'll be a lender that will offer you a mortgage. Aldermore's rates while higher than the mainstream shouldn't be discounted as an option.

ACG

Aldermore is an option, its 2 year pain but when you look at the bigger picture are their rates that bad when you think you have defaults, recently satisfied and a DMP?

Also, if you think their rates are astranomical I would seriouly think about whether a mortgage is right for you or not. Their rates are not great (but that is for a reason) however the rates they have were pretty much the norm 5 years ago.

However, I think Aldermore is overkill in this scenario. I think they can be beat, whether or not with high street lenders is debateable but I think there is some middle ground.

Find a broker who maybe specialises in adverse, they will know who this is likely to fit with. Or alternatively see how you get on with Lloyds first?