Mortgage advice.

od0077

If I am completely honest, I have absolutely no idea about the process behind how banks lend mortgages.

I do know that banks aren't stupid and won't just lend to anyone, which has got me thinking...

I am looking to buy my first property this year.

I made a mistake when I was younger and defaulted on one of my payments (I am now paying this back monthly).

As well as this, my partner had a joint account with somebody else, and we've just recently discovered that the account was kept open and has an unsettled overdraft.

In other words, our credit scores are less than perfect.

However, we both prove to be loyal workers and earn a combined salary of close to £50,000 a year. As well as this, we have savings of £40,000 which we intend to use as our deposit.

My question is, are banks willing to let go of mistakes made in the past on the basis that that you have a large deposit and that you earn a decent income? Are they mainly interested in your current situation or is your past a huge part of the decision-making process?

Also, what is the best way of upping your credit score?

Thanks for your time.

David_White

Banks don't really "let go" when it comes to things like defaults and unpaid debts I'm afraid, regardless of what your current situation is.

That said, engage a broker that handles adverse credit cases and there will probably still be options available to you.

MaebyJade

A lot will depend on how much debt/defaults were, how old they are and whether they've been settled. Lenders are likely to question how you have managed to save up x amount yet have unsettled defaults/debts. But as David said speak to a broker and they should be able to look into your specific case and advise better.