Adverse Credit, what are the chances?

xcmdx

Hi All

My first thread here so please be kind

I’m just looking for some advice from people in the know, or who may have had a similar experience with regards to adverse credit and receiving approved applications.

Myself and my partner are FTB and have made an offer on a house after receiving AIP from HSBC. My credit report is fine, unfortunately my partner has a 2 CC late payments , a default from telecoms provider and CCJ on her report

The stats are;

House: £290k
Deposit: £29k (10%)
Looking to borrow £261k
Combined salary £62.5k
Loans 0
Dependents: 0

Credit report:
2 late payments in last 12 months: £46 & £27
Default Satisfied: 10/03/2012 - £144
CCJ – Issued 28/01/2013, Satisfied 30/07/2013 - £2,330

Our application was rejected by HSBC based on adverse credit however they have apparently sent an appeal to their underwriters. I’m not expecting a great outcome but am worried about obtaining a successful application elsewhere. Can anyone inform me how long underwriting process may take?


Any further views/advice much appreciated

ACG

There is a possibility. I can think of 2 lenders where it fits criteria one of those would be subject to score card and the other underwriters discretion. There is possibly a third option but they have tweaked their criteria so not sure if it would still fit with them or not.

It is probably worth getting in touch with a broker.

xcmdx

Thanks for quick response.


If it doesn't go well with HSBC my plan of action is to contact London & Country to see what their opinion is. I'm wondering if Halifax would make a consideration, i'm not going direct to any lenders going forward though, mistake on our side of being new to this.

ACG

I have nothing against L&C personally, but take a look at the posts on this site.
I get the impression that they struggle with anything out of the norm.

On a side note, the house I am selling the buyer is using L&C, I am not sure whether it is my buyer or L&C but no application was made for around 2-3 weeks, it then took best part of 2 months to get an offer issued. The first application they made was with Halifax.

xcmdx

Thank you for your insight. The issue would be then finding a reputable broker who could take on the case :S.


In your experience do you know how long underwriters take?

ACG

Depends on the lender. I submitted a case to one lender and 18 hours later they were instructing the valuation. On the flip side, I submitted a case around a month ago and they are still requesting paperwork. Some lenders are fussier than others. One of the questions we ask clients is about whether a quick lender is important.

It is no guarantee the case will not hit snags, but we will avoid lenders who can be a little pedantic. If that is important to you, raise it with the broker.