FTB - Yorkshire Building Society... Help!

sjc93

Hi All..
I'm wondering if I can get some peace of mind as this is completely out of my comfort zone/new to me and I don't really know where to turn and the worrying is driving me mad!

My partner and I have been looking around for a property as we are FTB's - his salary is £30,228 and mine is £21,000. His salary is due to increase at the end of April/Start of May to around circa 33-34k.

I approached a mortgage broker following my adverse credit history. I have 2 credit cards (£190 total monthly), a store card (£10 pm), car warranty (£53 pm) & my car HP (£189pm). (my credit utilisation at the moment is rather high, 78% according to the MSE Credit Monitor credit report and I'm paying higher on my monthly repayments currently to my credit cards to get them down) - my credit score is 614 with experian, 556 with MSE Credit Monitor and 314 with Clearscore.

I have a default on file thanks to Vodafone which I have only just realised I had, which is for a staggering amount for £593. This was registered back in August 2014 (so almost 6 years).
I have also never missed a payment on anything since 2014/2015.

My partner has only his HP finance (£138pm), an Ikea loan which is due to end next year for £53pm and his student loan which is around £35. He has had no problems whatsoever with anything credit wise.
My partner and I have saved enough for the 5% deposit (11.5K), which I know lenders are notoriously strict on - but we simply cannot afford to save more and we have found our dream first home.

Our mortgage adviser struggled all week to get an AIP with anybody, with even Aldermore saying we would need to pay off at least 3K of our debt before we could borrow up to £220,000 despite passing the usual affordability checks prior to doing the AIP. This has now left a hard credit search on my file for some reason, even though my adviser assured me it would be a soft search only.
My partner went online on Friday night following our adviser telling us to put in an offer without an AIP/DIP as he would 'get it sorted', and he managed to be approved right away for an AIP with YBS (which I was really shocked about, considering our adviser told us all last week the soft credit AIP checks were failing on credit score, primarily Accord!).

I work for an IFA myself so I thought I'd give them a call initially tonight to see what the likelihood would be of a straight up rejection with my default on file, and she called through to an underwriter who confirmed that it would just be a referral instead of a decline, and to not do anything with my default (it's currently not paid off following my shock at even discovering this!) until an underwriter has been in touch with me.

We have decided to bite the bullet and try the application anyway.......... But do any of you folks have any experience with building society mortgages? Do they actually look at the person and how they manage their money now?

Once all my bills and the rent is paid (which we have never been late on) I have around £500 disposable income which will obviously increase more now I'm taking more serious steps paying off my debt.... My partner has also got around £300-400 disposable income, even more once his salary rises.

Any help or advice would really, really be appreciated.

[Deleted User]

They have same rules as banks at that size.  The small building societies maybe have more flexibility but not ybs. 

Saying that, their broker arm (accord) are great for past defaults. They tend to ignore anything over 3 years old and rely on recent credit profile.  Did your broker try accord?  Would be one of the first places to go with a default and to stay on the high street

kingstreet

"I was really shocked about, considering our adviser told us all last week the soft credit AIP checks were failing on credit score, primarily Accord!"

sjc93

Deleted_User said:

They have same rules as banks at that size.  The small building societies maybe have more flexibility but not ybs. 

Saying that, their broker arm (accord) are great for past defaults. They tend to ignore anything over 3 years old and rely on recent credit profile.  Did your broker try accord?  Would be one of the first places to go with a default and to stay on the high street

The broker tried Accord and the reason it declined is because the default is still outstanding (despite it being 6yrs ago in Aug). 

Which is why I was so shocked that the DIP we did online through YBS went straight through with no referral. 

[Deleted User]

kingstreet said:

"I was really shocked about, considering our adviser told us all last week the soft credit AIP checks were failing on credit score, primarily Accord!"

Oops, was reading whilst walking to the car. Completely missed that bit