Adverse credit mortgage help

tattybye

Hi there,
Bit of a long one apologies.
My partner and i are looking to buy a house next year.
His credit report is absolutely fine, no issues etc payday loans from 2 years ago however that was always paid on time and in full each month.

Mine however not so...
My ex husband took loans and cards out in my name of which i had absolutely no idea about, because this was done whilst i was at home with him at the time (cctv) and on our laptop there was nothing that i could do to prove that it wasn't myself that did this.
I had the police involved etc but to no avail.
That said we had to live together for so long before he moved out, this was before i knew about the debt that was racked up.
When he left the letters started coming through as he had stopped stopped paying these months before but was intercepting the mail whilst he was there.
He also disappeared off the face of the earth.
The creditors were however fantastic, despite the loans and cards having gone into default.
They stopped and froze interest and also reduced some due to circumstances etc.

I now have 5 defaults that are satisfied on the account and they date pre 2017.
3 live defaults where the most recent is March 2017.
I am paying these monthly still and 2 of which will be satisfied before i apply for a mortgage which we are planning on doing in the new year around July time.

I am trying to be proactive in hopefully showing that we are responsible.

1 Payday loan more than 6 month ago that i did take out and paid back within the month.

My question is after all that garble.
Is there a cat in hells chance that we would be able to get a mortgage together for a house of £150,000 and a deposit of £14,000??

We both have secure good jobs and no children.

Any thoughts or help appreciated.

jashdown

You should ensure that you have a notice of correction on your credit file, which allows you 200 characters to explain to prospective lenders anything you feel necessary on your credit report.

ultimately though, if you are servicing the debt, they will be included in any affordability calculations done by a lender.

It is absolutely possible to get a mortgage with debt providing it is not excessive. Most prime lenders will allow debt to income ratios of 30%-40% before they start to get too twitchy. Providing you have the income to afford the payments and go through stress testing, it would not be outside the realms of possibility. Going through a broker is an obvious choice here as they will match you to lenders who would look favourably on your situation

tattybye

Thank you for this advice, a notice of correction, i did't realise this was something i could do so i will look into this.

I will look for local brokers and start from there i guess.

jashdown wrote: »

You should ensure that you have a notice of correction on your credit file, which allows you 200 characters to explain to prospective lenders anything you feel necessary on your credit report.

It is absolutely possible to get a mortgage with debt providing it is not excessive. Most prime lenders will allow debt to income ratios of 30%-40% before they start to get too twitchy. Providing you have the income to afford the payments and go through stress testing, it would not be outside the realms of possibility. Going through a broker is an obvious choice here as they will match you to lenders who would look favourably on your situation

jashdown

One thing to note with a NoC - it makes it very difficult/impossible to be auto accepted for credit. Most lenders will see it on there and manually assess an application for any type of credit.

Have you got any AIPs? Habito did my mortgage recently - http://share.habi.to/mveROWC

They might be a good place to start

RelievedSheff

You need to try if possible to get that deposit amount up.

The more deposit you have the better.

RelievedSheff

jashdown wrote: »

One thing to note with a NoC - it makes it very difficult/impossible to be auto accepted for credit. Most lenders will see it on there and manually assess an application for any type of credit.

Have you got any AIPs? Habito did my mortgage recently - http://share.habi.to/mveROWC

They might be a good place to start

Adverse credit mortgage lenders manually underwrite their cases anyway which is why they can in some cases seem to take an age to get the mortgage offer in place.

tattybye

Not at the point of being ready to go for AIP at moment, wanting to wait until the new year as we are renting and waiting for the agreement to be up and also try to ensure everything is place before any searches go on the account.

jashdown wrote: »

One thing to note with a NoC - it makes it very difficult/impossible to be auto accepted for credit. Most lenders will see it on there and manually assess an application for any type of credit.

Have you got any AIPs? Habito did my mortgage recently - http://share.habi.to/mveROWC

They might be a good place to start

jashdown

tattybye wrote: »

Not at the point of being ready to go for AIP at moment, wanting to wait until the new year as we are renting and waiting for the agreement to be up and also try to ensure everything is place before any searches go on the account.

Most AIPs are soft searches these days (don't impact your credit file) so can sometimes be worthwhile as a peace of mind tool. You may be in a position to buy without knowing it

[Deleted User]

If you can get to 10% you will be in a much better place. 15% would be golden but maybe a stretch too far.

Your payday loan 6 months ago was a nuisance. You probably could have got a mortgage with a decent deposit if that wasn't on your file. How quickly you paid it back is irrelevant, the fact you couldn't make it to the end kf the month is what concerns lenders (they won't care about reasons).

ACG may state otherwise but I would suggest a Notice of Correction won't do you any real favours. It completely rules out lenders where it might sneak through on joint credit scoring as it forces a push to manual underwriting each time.

You have lenders who have set criteria that has been agreed with the risk control board with the regulators. No amount of saying 'it wasn't me' will get them to ignore what happened, especially since you are still taking payday loans in the last 6 months.

There are also lenders that don't have set amounts of defaults or payday loans. They go purely off credit score. These lenders can sneak through an application if one person has a very good score. However, a notice of correction will stop this and make an underwriter go over thr case.

So in summary,

Try increase your deposit
Go 12 months min with no payday loans
Don't be rash with notice of correction. If they worked, everyone would do one

tattybye

Deleted_User wrote: »

Try increase your deposit - Will do, adding to as we speak
Go 12 months min with no payday loans - Planning on applying officially in July next year
Don't be rash with notice of correction. If they worked, everyone would do one - Fair point

Thank you for this very much appreciated.

ACG

100% I would not put the NoC on there. They add absolutely nothing and are completely ignored by underwriters. The only thing they do do is prevent a system from automatically accepting or declining a DIP (in essence they just delay things and nothing else).

It is just something so that companies (lenders and credit agencies) can say if you do not agree, put a NoC on to get you off the phone.

10% and you should have options via a broker, 15% would give you more options as JMA says but I would be relatively confident it can be placed, more a case of whether you are happy with the rates (I would expect them to be around 4-4.5% as I am not confident it would pass on the high street).