On the edge Mortgage - will I be accepted

tom_burman

Hi guys,

Im currently applying for my first mortgage with my partner - but im worried sick because we have the house reserved but not applied for mortgage yet due to my credit report.

Now its not terrible - I have 382/700 for equifax/clearscore and I have 893/999 for experian/creditexpert. So both in the good region. But my worries are to do with some history.

In jan this year I got a payday loan - which of course was paid off straight away - but i know lenders do not look at it kindly, I also used them a few times last year (always paid on time).

I also had a late payment on my credit card in feb - I have placed a note on my credit file explaining it was just a miscommunication.

But I have since paid off my credit card fully and registered for the electoral role. These arent showing on my credit report yet and apparently wont do until May!!!!! But i need my mortgage ASAP I called both Nationwide and my local council to see if they can push through an individual request to update my credit score but both said no after Experian said they should be able to :mad:

What do I do? Should i go for the AIP? or wait until the end of next week for clearscore to update? Even if clearscore/equifax does update end of next week I'm going with Santander that uses Experian i believe so wont help too much.

I earn 52k a year which should be going up by tuesday next week to 56k and my partner earns 10800 a year(no tax)

We are looking to borrow: 252k
Any other advice?

Thanks

Torfoxwell

Have you spoken to a broker .? They will be able to place you with a lender sutiable for your history

Dont panic , where there is a will theres a way , a good broker will be able to help you

David_White

First thing I would do is remove the notice of correction from your report as all that will do is shine a floodlight on your payday loans.

tom_burman

I haven't place a note on the payday loan - just on my credit card late payment.
And yes I have spoken to my broker, he said we should go for it when I receive my pay rise formally on Tuesday next week.

I can also print off my credit card statement to show 0 balance and I have an email and letter from my council stating im on the electoral role - my broker said to send these to him as well and he can submit it with my application and it should help. This a good idea? will the lender actually consider this or simply just look at my credit report and dismiss the letters?

Thanks for your replies

David_White

The problem is, if you have put a NOC on your file the underwriter is then obliged to review the whole report in a far higher level of detail/scrutiny,

There's no benefit having that on your file at all, if there's a reason for your credit issues let the broker tell the lender directly.

tom_burman

Oh right have can i get it removed then?

MEM62

You are doing the right thing by going to a broker. They should have advised you on these issues already.

Lenders will not like payday loans on your file as it suggests that you are finically fragile. There is also the question of explaining how in January your finances were so stressed as to need a payday loan yet four months later you are in a position to put a deposit on a house and take on a mortgage. You must be able to demonstrate some financial resilience to withstand unexpected expenditure, changes in mortgage rates, variation in income etc etc. Realistically, will you pass the affordability test if you were relying a payday loans four months ago?

If course, we do no know your full circumstances and it is quite possible that you can address these issues but you will need to consider them.