Chances of mortgage with 1 default over 5 years

LLL30

Hello everyone,
I was wondering if anybody experience similar or is currently in same position...

Basically looking to apply for a mortgage with partner we have a total 18,000K (10%) deposit for a house value of 180,000K

My credit report is scored at 999 but my partner is at 750 (fair) he currently has 1 settled credit card default for £600 dated August 2010. We obviously had thought about waiting until August 2016 for this to be off his report before applying but truth is we have actually been waiting 1.5 years to move out and both don't really want to wait another 6 months to apply as by the time we find a property and move in etc it will take us to another year! We will if we absolutely have to do you guys reckon a default that's dated for 5+ years will be difficult to get a 90% mortgage? or one at all?

There is one more thing I wanted to ask that may also affect the lenders decision is that partner also had another default for but it was over 8 years ago and is no longer on the report but he is still paying it back, does this still matter if its not on his report??

Thanks all! Appreciate any advice or opinions!

TopperHarris

They will not know anything about the 8 year ago default.

I am sure that a broker will tell you a 5 year old settled default and 10% there will be a lender for you. Obviously the default is only part of the problem, you will need to satisfy affordability. Ignore the credit scores, they are useless.

LLL30

TopperHarris wrote: »

They will not know anything about the 8 year ago default.

I am sure that a broker will tell you a 5 year old settled default and 10% there will be a lender for you. Obviously the default is only part of the problem, you will need to satisfy affordability. Ignore the credit scores, they are useless.

The lender may not be able to see the default from 8 years ago however because partner is still paying it off each month the lenders will see it as they ask for a 3 month bank statement.

Affordability the broker already said we can... but I'm concerned about being declined because of the default that's currently still sits on partners report.

amnblog

A sizeable 8 year old default if it is still being paid.

There might be some options depending on the overall credit file. A 15% deposit increases your potential considerably.

You need to aviod the bank the defaults are with.

One for a broker.

LLL30

amnblog wrote: »

A sizeable 8 year old default if it is still being paid.

There might be some options depending on the overall credit file. A 15% deposit increases your potential considerably.

You need to aviod the bank the defaults are with.

One for a broker.

So do you think it's a bit far fetched getting 90% mortgage and a 10% deposit?

David_White

A mortgage with a 10% deposit sounds plausible based on the little information available, however it will come down to the finer detail so I'd suggest engaging someone that handles adverse credit cases.

LLL30

David_White wrote: »

A mortgage with a 10% deposit sounds plausible based on the little information available, however it will come down to the finer detail so I'd suggest engaging someone that handles adverse credit cases.

Thank you, yes we are going through a mortgage adviser so I will call her tomorrow but just been overthinking and worried so wanted to see if anyone else was in same position or has been through anything similar.

Me and partner have joint income of 45k and adviser already said that income is affordable for the amount we want to borrow. I'm just concerned about the default and the loan partner is still paying off monthly from 8 years ago that appears monthly in his statement which will obviously get questioned even if it's not on his report.

David_White

Just remember that the broker is on your side, so make sure you give them every bit of information whether it's good or bad.

You'll have a far better chance of success this way

LLL30

David_White wrote: »

Just remember that the broker is on your side, so make sure you give them every bit of information whether it's good or bad.

You'll have a far better chance of success this way

Yes definitely, I've told her everything and she said she's going to run all the checks tomorrow. Just hypothetically speaking, if we get the mortgage in principle how often does the lenders decline? Be totally heartbroken if at very last minute the sale falls through!

Thanks
L