Chances of Mortgage - Credit dependent

bamgbost

Hi ALL


Been working hard to clear all arrears on Loans, credit cards, overdraft, etc. in recent months.
All Defaults have dropped off or been removed, as they were incorrectly there in the first place.


I have requested to get on the Electoral roll at my new address.


However, the only 1 blemish I foresee, is that a Loan I still have had arrears for 4 months at one point. The account is now up to date, however that prolonged period was classed as "Delinquent" on Experian. It was not too long ago either... 2 months ago.


However now here are no more arrears. The only thing outstanding for me is that LOAN of approx. £3k now.


My partner has an unblemished credit record.


We are having a gifted deposit...of 15%.


What are the chances of a mortgage? And getting a decent rate.

mwarby

Delinquency 2 months ago, is gonna hurt your chances real bad, 2 years ago less so. I expect a lot will depend on total debt to income ratio

BLOW_FLY

Some of the professional MA on here will be able to offer their opinion but IMHO 4 months worth of arrears 2 months ago really will not go down well with any potential lender.

Even if you do get a mortgage you'll pay through the nose with a mega interest rate so you're probably better off hunkering down, clearing up your credit file and saving the money you'd otherwise lose in excessively high interest rates then thinking about it again in 18-24 months time.

BF

Thrugelmir

Focus on clearing your debts totally. Unfortunately gifted deposits do nothing to help you if your recent track record is poor. As it's not the security that concerns the lender but your ability to manage your finances. The only thing that will improve your credit history is time.

David_White

Whilst you're not going to be able to walk into the local bank on the high street I wouldn't rule out this being possible, especially if your partner has no credit issues.

Getting a "decent" rate may be asking too much though so I would be more realistic with your expectations.