Almost secured a mortgage...BUT!

dilemma10

Ah...had some feedback today from a whole of market broker. We were seeking a mortgage of approx £440k with an £80k deposit so LTV of 85%; combined salary of £130k. Partner's credit rating is superb at 990/1000 on Equifax but mine is dreadful. I have defaults (3, 5 and 6 year old), a student overdraft and some missed payments. Apparently, he would have been able to secure us a mortgage at a higher APR (around 3 - 3.5%) but because my missed payments on two very small credit cards in recent months, I am a no - go zone. Partner is gutted as I have let the side down and we saw our dream home. Broker says leave it until June and have 3 clear months of repayment on time.

I know this seems impatient but is there anything else we could do, do we try a different broker?

minimike2

Would YOU lend £440k to someone who is unable to pay their very small credit card on time?

streetlovin

Trying anything right now would just ruin your credit even more due to hard searches.

I would take it slow and wait at least 7-8 months with a few clear months before trying anything else. I think it probably would have been ok with 1 default, but multiple defaults in a space of a few years indicate horrible financial habits, despite how high your combined income is.

VinnyC

May not be any harm in trying, but probably will get the same outcome. Even if you do get a mortgage you could be charged higher rates of interest because of your defaults. As suggested above, it is probably worth trying to boost your credit rating over 6 months or so to try and put yourselves in a better position.

Harryp_24

dilemma10 wrote: »

Ah...had some feedback today from a whole of market broker. We were seeking a mortgage of approx £440k with an £80k deposit so LTV of 85%; combined salary of £130k. Partner's credit rating is superb at 990/1000 on Equifax but mine is dreadful. I have defaults (3, 5 and 6 year old), a student overdraft and some missed payments. Apparently, he would have been able to secure us a mortgage at a higher APR (around 3 - 3.5%) but because my missed payments on two very small credit cards in recent months, I am a no - go zone. Partner is gutted as I have let the side down and we saw our dream home. Broker says leave it until June and have 3 clear months of repayment on time.

I know this seems impatient but is there anything else we could do, do we try a different broker?

Put yourself in their shoes... banks would be stupid to lend you money.

David_White

These things happen, no point in beating yourself up over it. There's also no harm in getting a second opinion.

I would send your credit reports to a broker that handles cases with less than perfect credit as they could probably get an idea of what's possible without actually doing a credit check.