When to reapply for a mortgage.

Michelle245

Hi all,

So we recently offered on a house, only to have our mortgage application declined. Since then our broker has changed the amount we can lend due to a £12 missed payment I had back in January. (Total mistake, money in account so not even sure what went on, tried disputing twice.. got nowhere). Our broker said unless we get 10% deposit together (were currently trying with 5%) then we wont be successful as my credit isnt high enough.

So going forward I know we wont be able to save another 5% anytime soon. We have nursery fees and they eat up so much of our income. We can save each month, but not a lot! So how long should I wait for this payment to become an old default. I know lenders can see up to 2 years, do I have to wait that long? Or will 6/12 months be enough.

letitbe90

I couldn’t get a joint 5% mortgage with Halifax as my wife has missed payments from ~2 years ago, so they offered 10% (I ended up going sole application to get the 5% mortgage as my record was squeaky clean).

It could be potentially a long time before you will pass the 5% test as the banks may have strict “does not have any adverse credit in past x years” - by which time you probably would have saved the 10%.

Of course you can hope banks change their criteria, they do time to time. You can get an AIP anytime so feel free to check as often as you want (it’s only a soft check).

Also, lenders can see beyond 2 years.