95% mortgage with historic late payments

blueviolet_2

Hi!

Does anyone have any experience with getting a 95% mortgage with a less than perfect credit history? I have 3 months of late payments on a credit card 7 months ago, and 3 missed payments on a Next account 12, 15 and 24 months ago.

Looking at properties around the £190-200k mark with a £10,000 deposit.
Salary: £48,000 - £1000p/m is being added to my deposit fund
Current debt: £3000 on an interest free credit card - repaying £100 p/m (30% utilisation of current credit)

I have an AIP from Halifax for £198000 with an 85% LTV - but it's not going to be possible for me to get an additional £20k of deposit in the timeframe I'm looking at (need to move before October when my current tenancy ends).

happytails

I think you'd be hard pushed for 95% mortgage, any chance of a cheaper property or saving up for a 90% Ltv mortgage?

Thefutureisbright

Hi

I've struggled to get one at 85% LTV with historic bumpy credit (from 5 years ago!) so it may be a struggled to get 95%.

kingstreet

Seven months ago isn't historic.

That 85% from Halifax may well be reduced at full application. 95% isn't realistic and an accept at anything above 75% may be difficult before the above becomes two years old.

Have a look at all three versions of your credit file and get them to a broker. The only advantage may be with a lender which sources data only from the CRA which shows you in the best light - eg that the card arrears aren't visible to them.

LKRDN_Morgan

I don't know how they'd view them being only 7 months old but I've just been accepted for a 95% mortgage with Santander. I had 1 late payment from 18 months ago and my husband had 3 from 2012. We bank with Santander too so not sure if that helped us at all

Just to add we went through a broker who was brilliant and well worth the money. I'd read up a lot on 95% mortgages and everything seemed to say you need a squeaky clean history to even be considered so I wasn't feeling too hopeful!

blueviolet_2

Thanks everyone.

A cheaper property in my area isn't really going to be possible - unless its one that requires significant upgrades or a commute which would mean buying a car. I could hold off until September when I'd have around £15k and the late payments would be over a year old but I still wouldn't have made it to a 10% deposit

sammyjammy

blueviolet wrote: »

Thanks everyone.

A cheaper property in my area isn't really going to be possible - unless its one that requires significant upgrades or a commute which would mean buying a car. I could hold off until September when I'd have around £15k and the late payments would be over a year old but I still wouldn't have made it to a 10% deposit

Maybe you need to renew your tenancy when it ends until you have saved up a bigger deposit, it won't take long if you are saving £1k a month.

blueviolet_2

sammyjammy wrote: »

Maybe you need to renew your tenancy when it ends until you have saved up a bigger deposit, it won't take long if you are saving £1k a month.

Not an option I'm afraid as my landlord is planning on moving in.

sammyjammy

blueviolet wrote: »

Not an option I'm afraid as my landlord is planning on moving in.

So move somewhere else. You have options, they just aren't necessarily ones you want to make.

Dutsey

What about the help to buy scheme on a new build if affordable? You put down 5% and the government 20%. Could this not be an option?

blueviolet_2

Dutsey wrote: »

What about the help to buy scheme on a new build if affordable? You put down 5% and the government 20%. Could this not be an option?

It would be affordable but there's no Help to Buy developments in my area