1 year of account and possibly bad credit

Sazb

Sorry really long post....

Hi I am hoping for some advice, I have not posted on somewhere like this before but have been trying to do as much reading up as I can so please bare with me if I have missed anything.

I am aware I'm not in the ideal position to get a mortgage but we are for one reason or another very keen for it to happen sooner rather than later.

Firstly we have been to see a mortgage broker/adviser for some initial advice a few months ago and told although we won't have access to a lot of the market as I only have one year of accounts for my business there are mortgages out there for people with only one year.
I have had my accounts done by a chartered accountant and I am a sole trader.

My partner has no problem with credit and has checked, he also has a property that he owns and will be keeping to rent.

We will be looking at a 75-80% LVT on the new property as we have a large deposit.

When we initially spoke to a mortgage adviser (independent broker) I thought my credit was ok as I had checked my Experian credit score and it came out as 999 (I know this isn't what I should go on but thought as it was the highest I could get any bad credit must be gone)

Since I have been doing some further investigation and found the "bad credit" I had is still around.

Here's what happened, I had a credit card and I got myself in a bit of a pickle. In August 2009 (8years ago) I had missed 4 payment the card after advice from a debt management company to do so and then tell them you can pay a small amount to clear the debt. I was naive and stupid and was promised it would effect my credit as I would be paying it off and that essentially the credit card would freeze the interest and show I was still making payments, I obviously now know I was lied to! I didn't enter a DMP but I did speak to the credit card and make and "arrangements to pay" I paid this from September 2009 to March 2012 (5 years ago) i then paid a lump sum off to clear the debt in April 2012 but unfortunately I thought the account was closed and somehow didn't see they had added interest on to the account in May 2012 so I had a missed payment and the account was cleared and closed June 2012.

So to sum up I had 4 missed payment August 2009. a arrangement to pay from September 2009 - April 2012. A missed payment in May 2012 and account closed June 2012

I checked Noddle which I believe is Call Credit and it has credit score of 603 out of 710 and is reporting "AR" from April 2011 to March 2012 and "AA 1" for May 2012 on this card.

My statutory report fro Credit call shows no sign of the credit card which is strange.

Clear score gives me a credit rating of 424 out of 700, I have checked my equafax statutory report and it is reporting everything about the credit card, warts and all from all the years open.

As I mentioned my Experian credit score is 999 which is the top score you can get I believe and I am waiting on the statutory report from them.

Also it might be worth mentioning I was approved an Amex last year with a substantial credit limit.

So I guess what I'm asking is do you think it's worth trying to apply for a mortgage or do you think my credit record will let me down?

Thanks for taking the time to read this long post and thanks for any advice in advance.

kingstreet

Ignore the worthless "credit scores."

Your adverse is all historic and the lenders who accept those with one year's account should consider you.

Sazb

Thank you, I've been loosing sleep!

ACG

As kingstreet says, ignore the score.
There is a possibility one or 2 high street lenders may accept you at 75% LTV. Failing that you should have options at 75-80% although the rates may be a little higher.

The adverse is quite minor and historic. No guarantees it would be accepted but definitely worth a try as it should have no major impact on the adverse type lenders.

alex_163163

Not that this was a question you asked, but just one other thing that you are probably already aware of anyway - but in case not - if you are buying the new place with your partner, you might be subject to the higher 3% stamp duty rate on the new house, as he will already own a property he is planning to rent out.
Just worth a mention in case you didn't realise and it came as an unaccounted for / unwelcome surprise in the future!