Low credit mortgage

Rhihughesss

My partner and myself have recently been declined a mortgage .My mortgage advisor had advised us to put 15% deposit rather then 10% which is totally doable. My credit score is excellent and my partners is “fair” but he has never had any defaults or ccjs. what is the likely hood I will get a mortgage or should I give up now? We was declined due to credit score, would it be possible for us to apply for a low credit mortgage?

[Deleted User]

It depends on your files. You weren't declined due to the fictional credit scores houses, but in how the lender scored you.

Rhihughesss

Okay thanks for your help! I really hope we can get something sorted as we have a baby on the way

ACG

Who did you apply to?
You do not have a credit score. That number you see is a made up number the credit agency gave you, it is an indication at best.

Are there late payments on the credit report?

There are lenders who are more relaxed when doing the credit check and lenders who only want the best of the best. HSBC/FD are known to be quite fussy as an example.

Assuming you have no bad credit, there should be options at normal rates.

Rhihughesss

We applied for Hsbc and nationwide and they have declined me. I have made one late payment and my partner has made one so I’m really hoping we will be able to get a mortgage with someone.

csgohan4

is your mortgage adviser from the estate agent?

ACG

You will be fine I am sure, but HSBC was probably not a great call.
Nationwide can be a bit 50/50.

There are other more flexible lenders I would be trying at 90% if that is your preference before looking at 85% I think. Is your broker just choosing the cheapest products or are they trying to match you to a lender likely to accept you?

Youve not gone with an estate agent based broker have you?

WibblyGirly

We're going with Halifax, my broker told me they are more flexible and they don't care that I have an overdraft. We have no missed payments for the last 5 years which I think has helped.

Have you looked through your credit reports yourselves to see if anything is amiss?

fatbelly

Rhihughesss wrote: »

We applied for Hsbc and nationwide and they have declined me. I have made one late payment and my partner has made one so I’m really hoping we will be able to get a mortgage with someone.

Were those the only negative factors on your credit report? Have you checked all three?

If those were late payments to a credit card, you can prevent this from happening in future by setting up a direct debit with the lender for the minimum payment.

Then, if you forget to make a payment, you may get charged interest but won't get a mark on your file.

Rhihughesss

My mortgage advisor had said they are more likely to accept at 85% as most lenders would want a credit score of excellent if your are borrowing 90%. It’s more than doable as my mum said she will support me as much as possibly If needed to. I will mention Halifax to my mortgage advisor as I have seen a lot of people have had their mortgages accepted with them with a low credit score. We have both checked our credit report and we have no outstanding payments and the only downfall is not being on the electoral role which we have now both done.

Thank you

ACG

My mortgage advisor had said they are more likely to accept at 85% as most lenders would want a credit score of excellent if your are borrowing 90%.

You are more likely to be accepted at 85%.
There is no such thing as a credit score so good/poor/excellent - does not exist.

Your broker sounds inexperienced or just not very good. I mostly do adverse mortgages and around 15% of our adverse customers ended up with a high street mortgage at 90% LTV. You have 2 late payments which I would not consider adverse, your broker should be getting this on the high street all day long at 90% without you needing to prompt them.