Chances of High Street Mortgage

SuzieP0408

Hello...
I wonder if anyone can help?

In 2014 I went through a marriage breakup and ended up getting myself into a bit of a mess financially trying to run the home on my own. The result of that was that I missed some payments on things and ended up with 2 small defaults for £24 & £86 which are both settled and a larger one that was initially for £3995 I have been making regular monthly payments on this and currently owe around £700.

My question is would there be any chance that I would be eligible for a mortgage from one of the high street lenders rather than an adverse credit lender?

My circumstances have completely changed i have a new partner and we managed to get a 2 year fixed rate mortgage with Vida homeloans in 2017 with a higher interest rate because of my bad credit but our deal comes to an end in May and if possible we would like a lower interest rate.

We’d require a mortgage of around £170k our home is worth £260k and we have a combined annual income of around £82k. My partner as perfect credit report.

I could probably pay the £700 default off in one go if it would make our chances better, I intend to pay every penny back. The default is due to fall off my credit report in Dec 2019.

Any help would be appreciated.

ACG

50/50 on high street. It would definitely be worth a try - good amount of equity, 2 years paying a mortgage, 4-5 years with no adverse, there are plenty of positives.

It might not be for every lender, but there should be a few out there who may consider it.

Thrugelmir

SuzieP0408 wrote: »

I could probably pay the £700 default off in one go if it would make our chances better,

If you are serious about obtaining a cheaper mortgage. Then tackling the obvious first is where you should be focussing your attention. With a household income of £82k. Not settling a default doesn't give a good impression to a lender of you as a potential borrower.

SuzieP0408

Thank you.

Do you think I should go to lenders direct and ask about eligibility or go through a broker? Do you think I’d have more chance with a broker?

SuzieP0408

I know you’re right and I will settle that straight away. I’ve been a little bit silly and just got into the habit of paying the agreed monthly payment that I arranged a few years back without really thinking of consequences.

ACG

I dont want to sound biased but I think your chances are better with a broker.

One thing I tend to do is check the customer fits criteria but then also ask my account manager at the lenders how likely it is to fit where it is a little 50/50. We do however many mortgages we do in a month split over various lenders but account managers see tens of applications a day just to them, so we can get a second opinion up front.

Verix

Again I'm biased, but I would say the benefit of a broker would be that they can potentially try with the high street lenders first (having a good idea of who would and wouldn't accept you) and if that didn't work then they could start looking at the alternatives.

If you tried it yourself it would be harder to know which lenders to approach, and if you fail first time you'd have to go through the whole process again with someone else providing documents and details afresh every time.

Either way it's do-able but you'll save time and stress with an adviser.

timeism0ney

What's your partner's income? Are you linked financially through a joint account? With enough income he can apply for a mortgage in his sole name and avoid possible effects of your financial situation. Explore this scenario too. It may or may not work due to affordability, linked finances etc.