Mortgage application

Standingirish

Hello, I am hopefully applying for a mortgage with my partner and wanted to check the likelihood of a few things. In the past i used a number of payday loans, all paid off and the last one used was in august 2014. I have a default from Wonga however they have agreed to remove this because i have had an irresponsible lending claim and won compensation from them. i am waiting for the default to be removed, apparently within the next week (I have contacted experian and brought this to their attention and they have added a dispute notice next to the Default.)

I have a credit card which i got to boost my credit and i pay on time regularly and my credit limit has been increased to 4000 by the company, which a friend told me to allow because it looks much better. I dont use anywhere near that! My crtedit score with experian was 725, but recently dropped to 695 because i was using more of my credit this month. I have no outstanding debt and have paid on time periodically for as long as i can remember other than the Wonga.

My partner has no adverse credit and is employed and self employed. We have saved a deposit within about 4 years of 20,000 and this is all income that would become available once we are no longer saving for a mortgage because my partner has used alot of her invoices to save the deposit.

My credit score with equifax is 480 out 700 and callcredit is also good 4/5 on noddle. Is it likely that an idependant mortgage adviser is able to get us a decent rate mortgage? I am a little worried as we have been truned down in the past, but this was a few years ago and we had a smaller deposit and it was at the height of my payday spree. I would appreciate honest and helpful suggestions or feedback?

LACEY174

I would try doing an online agreement in principle and see what the result is. In most cases it will mean a higher deposit is needed to improve your Loan to value against the property. They are easy enough to do, but would do one to get an idea as doing multiple AIP can result in multiple credit searches.

Debtslayer

I would contact an Independant broker rather than trying to do it yourself.
if your partner has a good credit rating they need to think very carefully if tyey want to get financially associated with you as your poor history could impact on them

David_White

Don't focus on the "score" that credit agencies give you, it'll be the data within the report that determines your credit profile with a lender. They all have different ways of assessing you.

From the information you've provided a mortgage should be possible, however it'll come down to the finer detail so I'd suggest getting your credit reports in front of a mortgage professional.

Standingirish

I have spoke with an indepoendant advisor and he said that he thinks he would have success with Halifax with the default. I think my primary concern is the payday loans as i know lots of main companies hate them. I was contiemplating trying Halifax online to say if i would pas the DIP stage and go it alone with them as that is who he suggested?

My partner and i are already financially associate as we have been together for a long time she is aware of the situation.

David_White

Standingirish wrote: »

I was contiemplating trying Halifax online to say if i would pas the DIP stage and go it alone with them as that is who he suggested?

People like you are the reason some brokers charge a higher fee.

Sounds like the broker has spent valuable time with you, given you a good idea of what they can do and in exchange you're going to mug them off and go direct?

Nice one, hope your case turns into a disaster.

Brightspark87

I am in a similar position credit wise and mortgage wise - I am using the broker and paying a fee. He is a complete star and knows the best way to present things - that is what you pay for. If you get a DIP from Halifax and then decline in the full application stage where will that leave you? Stick with the broker.

Standingirish

Hi Brightspark87 your right, you just over think everything in this position and obviously I care how my poor choices in the past are viewed. I'm sticking with him because he knows us and has said he's had success with bigger and more defaults. Our landlord is selling our flat so we just want to own a house and we have seen a property in our perfect area and budget.

Wonga have agreed to remove the default but how long that takes is another story they said 10 days but I sincerely doubt it that would be tomorrow.

MortgageMamma

Hang in there with your broker, you must learn to trust him he's a professional - would fix your own car without qualifications? Just because advice is intangible does not mean it isn't worth having - getting it right first time will save you a lot of money and heart ache in the long run. Have confidence in your broker to look after you.

Good luck with your purchase

Standingirish

MortgageMamma wrote: »

Hang in there with your broker, you must learn to trust him he's a professional - would fix your own car without qualifications? Just because advice is intangible does not mean it isn't worth having - getting it right first time will save you a lot of money and heart ache in the long run. Have confidence in your broker to look after you.

Good luck with your purchase

Thank you MortgageMamma, i do trust him we looked into about a year ago with him but he suggested getting a credit card etc as there was just over a year between the last payday loan and now its over 2 years. He said he has had success with worse defaults like i've said and i have heard of people in worse situations getting a mortgage.

I have paid off a credit agreement of £1200 pound in the last 12 months and been using a credit card sensibly for the same amount of time so thats got to count for something. Plus my partner is in a better position credit wise with no defaults or payday loans.

I appreciate we will most definitely be paying a higher rate but i think we have done all we can do and have a decent deposit, its just stressful.

Brightspark87

Looks like you've got yourself a good broker there. All the VERY best of luck from someone in the same boat. Please update us as and when all sorted and I will do the same for you! x