Mortgage with adverse credit

mrs_money_2

Hello all - I am after some advice if possible.

My husband and I were hoping to get a joint mortgage with the HTB EL scheme. Husbands credit is almost perfect, however mine is adverse due to having two defaults on my credit file

Default 1 - Applied in May 14 @ £283 (Settled)
Default 2 - Applied in September 15 @ £2480 (Settled)

I have downloaded my credit files and the ratings are as follows;
Equifax = Good
Experian = Very Poor
Call Credit = Poor

We have savings of £16.5k and currently save £2k per month between us.

The financial breakdown of the property we have looked at is;
Property Price: £329,995
Deposit: £16,500
HTB Loan: £65,999
Mortgage: £247,496

We have a joint income of £69,750.

What is the likelihood of being able to get a mortgage with my credit rating? Also, my husband is 51 so guess we will have to have a shorter mortgage term than the typical 25 years.

Any advice of feedback from anyone who has been in a similar situation would be greatly appreciated.

ACG

I think the bigger issue is the affordability. I am relatively sure the defaults can be overcome.

I do not really do equity loan mortgages as there are not really many new builds in our area so I am not sure how the equity loan affects a Mortgage, but if it does affect affordability you may find on a reduced term it is tight.

kingstreet

A lender will typically "tax" mortgage affordability by 3% of the equity loan, so your affordability is reduced when compared with a "normal" mortgage.

There's a couple of adverse specialists on the HTB EL scheme. You would best be served appointing a broker to do Government and lender affordability for you and to establish your options.

mrs_money_2

Thank you both for your replies.

To be honest I find the whole prospect of getting a mortgage quite daunting, especially now that I have credit issues.

There are cheaper options (less bedrooms etc) so if affordability is an issue we can look at those instead.

MickeyDaMouse

If your defaults are showing on Experian but not on equifax - which your posts suggests may be the case - then look at which lenders use equifax. Avoid those using Experian. MSE has a list on this site showing who uses whom and a Google search will often help too.

Also seconded on the broker part. Have an open and honest chat with a broker. They can in some situations fight your corner with a lender and add extra clout to your application. They'll also know who's more likely to accept you and who not to bother with so you have less chance of getting too many applications made in a short amount of time.

Defaults can be a problem but if you can show they are not the norm for you you should be ok.

sultanabran

There's no guarantee a lender won't change which credit reference agency they use when you apply. Rather than risk getting declined and another search on your file, its better to be upfront about everything with your broker. They will know the lenders to apply with that are likely to be accepting of your circumstances.

mrs_money_2

Thank you for your replies.

I have been in contact with a broker today and she seems fairly confident that we should be able to get a mortgage. My credit reports show that I was a good payer before I hit a rough patch so hopefully this will go in my favour. Fingers crossed!