High Street Lenders - Is it possible?

stpuk

Hi


My partner and I are looking to get our first joint mortage. The house we are looking at is approx £160,000 and we are looking to pay about £30,000 in deposit - we have a joint annual income of £61,000.



Except we have one slight problem.


My credit rating according to equifax is almost 100% but my partners is rated as poor to medium - no ccjs, defaults, payment plans etc just late payments on the credit card and catalogue although they were paid, even her current mortgage is perfect!


We both have property to sell and when hers has sold it will clear her loans and the evil credit card leaving us both debt free.


What are the chances of us getting something from one of the high street lenders?


Cheers


Si

herbiesjp

It really will depend on the number of late payments - as a side note setting up a direct debit for a minimum amount is a good way of at least getting a payment across and avoiding these types of problems.

There may well be some lenders that could loook at this, but others will definitely say no if it is more than just a one-off event

stpuk

Thanks herbiesjp

I think there are a handful over the last couple of years. Is there a cut off point that the lenders will look back against for late payments?

Thanks

Si

herbiesjp

HI Si

They stay on your credit file for 6 years.

However, all lenders look at credit files in different ways, and therefore each will look back different times i.e. lender A may look back 5 years, while Lender B may only look back 2 years

Best bet is to have a word with a whole of market adviser and discuss the scneario with them, and let them see what they can find for you (obviously without getting any credit checks carried before any deals are discussed)

Rafter

The Equifax rating may not be used by the lender.

As long as they can see you can afford the loan, that other debts will be paid off and that you have no major credit issues such as Bankruptcy or CCJ's then you should be fine.

As herbie says, find someone who knows the market and they will have a feee for which lenders might suit you and look more favourably on your situation.

The other option is to get a less standard mortgage with reasonable fees and no exit penalties with a view to changing lenders in a couple of years when your credit records will have improved.

R.

stpuk

Thank you both for your advice - much appreciated