Chances of mortgage?

vinnie1208

Hi guys.

I would like your thoughts on the likelihood of being accepted for a mortgage.

My finances have been perfect for the last 2-3 years and i earn a decent salary now. However I have two defaults from 4-5 years ago for a credit card -£627 default mobile phone - £798 these have been settled for sometime.

I also used to use payday loans but these were paid off in full and I haven't used any credit for a few years now.

I will have around a £65k deposit and looking at houses between 150-170k.

What may my chances be?

Thanks

DCFC79

On what kind of scale ?

See a broker and an independent one, 1 that covers all of the market.

No 1 on here will know of your chances, you have a nice deposit so chances may be good.

Thrugelmir

Not enough information to pass comment. If you meet affordability criteria, pass other checks besides credit history. Then yes entirely possible. As lenders target different segments of the market. Even poor credit ratings are catered for at a price.

cjmillsnun

It depends on what you term a decent income, it depends on other credit obligations, it depends on whether you have any recent credit history... It depends on whether you have enough income compared to your outgoings.

Simple answer, it depends

enthusiasticsaver

The defaults will still show on your record so you might be best off approaching a broker who deals with people with poor credit ratings? When was the last payday loan taken out as that will also reflect poorly?

There is usually a premium on borrowers with poor credit history so you might be better off waiting a few years until the defaults have dropped off. You have a good deposit though so that will go in your favour. You also need to pass affordability checks.

vinnie1208

Yeah I'll guess I'll go to a broker. Or nationwide do a DIP where they do the credit check first? Just really hate the idea of putting an offer in for a house and getting declined

cjmillsnun

IIRC Nationwide do a hard search for a DIP some other lenders do not.

RM1985

My credit score is squeaky clean but my partner has history of defaults (for loans). He'd only just recently paid them off

We went to a broker who found us a few deals, just at higher rates. But they said the longer the default was in the past, the better. In the end I got the mortgage out in just my name as got better rates.