Bad credit mortgages

xcvx · 27 February 2020 at 11:32AM

My partner and I are looking to buy a new build house within the next year. We have put an early bird reserve on a property which is around 215000 and should be released for sale within the next month or so. We have a combined income of just under £50k and will be using the help to buy 20% equity loan with a minimum of 5% deposit.

My partners credit is pretty perfect. He has a car loan which he is paying off in a few weeks and pays 200 child maintaince a month for his son. I however, have a terrible credit score and bad history. 3 defaults in last 2 years..combined value of £1500 and last one was issued in Dec 2018 and are all now paid off. I have a few missed payments here and there but all in the past. I do also have a history of payday loans from 2017 from a bad relationship and young life choices. I am now finally stable and am able to prove this. I have a loan which is finishing in just over a years time and my car loan is due to end in Oct this year.

We spoke to a broker who thinks we can get a mortgage with precise mortgages. I have also looked up their criteria and we do fit. I just don't want to be disappointed. We havent got a DIP yet as we only have the early bird reserve and aren't ready, but we will be soon.

I have before had a DIP with Aldermore early last year who said we would need 20% deposit. Would it better to back to them? We will hopefully have a min of 75% LTV with the HTB scheme on top of our deposit.

Thanks!!

Retired_Mortgage_Adviser · 27 February 2020 at 12:09PM

I'm sorry if this appears like I'm stating the obvious but to give you an informed answer will require far more detail about your credit history.

Your broker (assuming they're any good and not the L&C / Habito types) should have looked at the entirety of your circumstances and a copy of your credit report before saying that they "think" you can get a mortgage with Precise.

xcvx · 27 February 2020 at 12:20PM

Retired_Mortgage_Adviser said:

I'm sorry if this appears like I'm stating the obvious but to give you an informed answer will require far more detail about your credit history.
Your broker (assuming they're any good and not the L&C / Habito types) should have looked at the entirety of your circumstances and a copy of your credit report before saying that they "think" you can get a mortgage with Precise.

Thanks. That pretty much is all that is on my credit history without sharing too much on here.

The defaults were from a credit card (350) unarranged overdraft (470) and a store card(700). All issued between July-dec 2018

The payday loan use was between June-December 2017 and was continuous between those times.
Missed payment on my car loan back in March 2017 and have since then never missed a payment.
1 or 2 on a phone contract within the last year or so.