Mortgage - bad credit

k1984

Hello!
So looking for advice. Despite my credit score showing as ‘excellent’ through Experian, I have what I would describe as a poor credit history - I got into debt about 4 years ago and sorted this 12 months ago through help from family.  Up until last year I used payday loans (5 loans, all settled now (last one settles 11 months ago) however one I had an ‘arrangement to pay’), my credit card debt is slowly coming down (£10,000) and no loans.  I have missed payments previously on my credit cards - one had 5 consecutive missed payments in 2018 (£1000 still outstanding but up to date since), one had 3 consecutive missed payments in 2018 (£9000 still outstanding but up to date since) and one had an arrangement to pay in 2017 (card now paid off).

i have a joint mortgage since 2009 and never missed any payments. We are looking to move house and increase our mortgage. We will have around 20% deposit using the equity from our current house when we sell. We jointly earn £100,000 per year.

my question is - with my poor history in terms of payday loans and missed payments - are there any lenders who would offer a mortgage? Has anyone been in a similar position and got any success stories?

Thanks

ACG

This is an example of why I say to ignore the score on credit files. Clearly your past credit is not excellent, but that does not mean you are not going to get a Mortgage.

You are in one of those grey areas where you are borderline normal lenders/borderline a specialist lender. The negatives you have mentioned, the positives however you will have a good deposit from your own means (not a gift for example) and a history of making your mortgage payments. 

I am 99% sure there will be a lender out there, it is more a case of are you looking at circa 2% rates or closer to 3.5% I think. No harm getting your reports infront of a broker to see what they think as the devil will be in the detail. 

k1984

Hello, just thought I’d give an update / see if anyone else can give more information.

the situation with COVID put everything on hold and we’re still looking. We got an agreement in principle online through Virgin Money and another one through Clydesdale Bank.

are these a good indication of whether we will be successful with a full mortgage? I appreciate it’s not a guarantee etc. When getting an AIP what do they actually check?

With things starting to open back up we’re hoping to visit a broker in the next few months but just looking to see if anyone has had any success with similar circumstances to me on the first post above.

haras_n0sirrah

Virgin have stopped doing any adverse at all a few weeks back and they have merged with clydesdale so I would be surprised if they went through.
You need to get your credit report in front of a broker as pre and post covid are different worlds
If you dont have a broker then read the boards and approach a broker from here who you think can help. We are independent brokers and while we are not allowed to approach forumites most of us are happy to respond to pm's asking for help.