FTB Good Income Confused on Credit History

WilliamMcBeard

Evening Everyone,

Looking for some advice on mortgage application with my credit history being a mixed bag.

NO CCJs. Had a default 3 years ago over very small amount from Vodafone BUT it doesn't appear on Experian or Noddle?
Had a lot of Pay Day Loans up until 2 years ago due to the breakup of marriage.
Pre-approved for £17.5k loan from current bank RBS who also keep offering me an overdraft of 5k (No intention!)
Otherwise it's just £200 on an RBS credit card and that's it.
Partner had car lease of £14k and loan of about £8k with CC around 5k

Combined income of c.£120k and affordability has given us AIP from RBS and L&C up to £540k. RBS did a soft search and said that on girlfriends wage alone they would lend £300k and very likely to be accepted.
Only intending on £200k mortgage with between 12-15k deposit.

Can anyone advise me on how my credit history will be viewed? High income and hugely under our affordability but will PDLs count against me?

Sorry to ramble on!
Bill

DCFC79

WilliamMcBeard wrote: »

Evening Everyone,

Looking for some advice on mortgage application with my credit history being a mixed bag.

NO CCJs. Had a default 3 years ago over very small amount from Vodafone BUT it doesn't appear on Experian or Noddle?
Had a lot of Pay Day Loans up until 2 years ago due to the breakup of marriage.
Pre-approved for £17.5k loan from current bank RBS who also keep offering me an overdraft of 5k (No intention!)
Otherwise it's just £200 on an RBS credit card and that's it.
Partner had car lease of £14k and loan of about £8k with CC around 5k

Combined income of c.£120k and affordability has given us AIP from RBS and L&C up to £540k. RBS did a soft search and said that on girlfriends wage alone they would lend £300k and very likely to be accepted.
Only intending on £200k mortgage with between 12-15k deposit.

Can anyone advise me on how my credit history will be viewed? High income and hugely under our affordability but will PDLs count against me?

Sorry to ramble on!
Bill

Who knows.


You need to consult a broker, each lender may view the pdls differently, maybe a broker who deals in adverse credit files might be the way to go.

ACG

They will with some lenders but as it has been 2 years, you should be fine in the main.

WilliamMcBeard

Thanks for the input. The two most attractive we have been shown by our broker are Tesco and Post Office/BoI. Any idea what their lending behaviours are in relation to our circumstances?

Bill

somethingcorporate

What does your broker say in regard to your situation?

MortgageMamma

Your broker should be answering this for you, but there is nothing stopping you calling the companies themselves to check

I've check tescos criteria and there is no mention of payday loans or telecommunications defaults. A lot of lenders ignore telecoms defaults.

Post office are a little more helpful

Payday loans

We will not normally lend if any applicant has taken out a payday loan in the last year. Applicants with payday loans taken out more than one year ago will be assessed individually to ensure affordability can be demonstrated.

We will not usually lend if the applicant has defaulted on any credit agreement in the last three years, or has an outstanding default

WilliamMcBeard

Fantastic, really appreciate that help. I feel confident going forward with either of those options.
One thought was to go with our own bank (RBS) as we are Premier customers. Would that make any difference with them?

Bill

somethingcorporate

Possibly but unlikely anyone would know for sure.

muhandis

If your mortgage broker has recommended products from Tesco and the Post Office after reviewing the entirety of your circumstances, it stands to reason that their lending criteria and your requirements are in sync. Assuming that he/she is competent and aware of the credit history background.

Given the age of the payday loans and the minor default (not visible on your credit report), a decent broker should not have too many problems getting you a mainstream mortgage.

WilliamMcBeard wrote: »

Thanks for the input. The two most attractive we have been shown by our broker are Tesco and Post Office/BoI. Any idea what their lending behaviours are in relation to our circumstances?
Bill

WilliamMcBeard

Thanks again for the input. I guess I'm just worrying without good reason really.

Bill