Mortgage with default and new job!

JGV

Hi, 

looking for some advice regarding getting a mortgage. 

My partner has a steady job in the military. I am looking to go back to work in September as an early years teacher. We have 3 children, debts which will be below £1500 by the time we apply and just general bills and car finance.
 We’re looking to buy our first home with what we’re hoping will be around a £20,000 deposit. 

He has a perfect credit report and I have one default for a mail order company dated Jan 2018 (I’m in the process of trying to have this corrected as I feel it was put on unfairly). 

We’d hoped to get the process going December this year but I’m worrying that with only 3 months of payslips and the default (if I have no luck removing it!) that we won’t be able to get approval. 

Does anyone have any similar experiences or advice? 
Thanks! 

ACG

A lot is going to come down to Corona and how the rest of the year pans out. 
I would be relatively confident this can be placed at the minute, but if the market tightens up then you may struggle. 

JGV

ACG said:

A lot is going to come down to Corona and how the rest of the year pans out. 
I would be relatively confident this can be placed at the minute, but if the market tightens up then you may struggle. 

Do you think the default will pose the greatest problem for us? And we aren’t going to be in a position to apply until at least September but we’re aiming for December so I’d have been working for at least 3 months. 

I didn’t want to be down as a dependant, but, do you think that would make a difference if my partner were to apply on his own and then I could be added at a later date? 

Thrugelmir

If you are contributing some of the deposit. Then the application should be made in joint names to avoid complications. 

JGV

Thrugelmir said:

If you are contributing some of the deposit. Then the application should be made in joint names to avoid complications. 

I will be as I have around £8,000 saved. I just thought maybe it would be easier for my partner to get it on his own and then add me at a later date once I’d been working for a longer period of time? 

We have 3 children (which I know doesn’t mean things can’t end) but makes me feel more secure to go down that route if it Meade things easier but could it be put into some deed that part of the deposit was mine? 

[Deleted User]

Assuming it's full-time, employed, I don't think the work will be much of an issue at all with most lenders - especially as it's teaching.

The default will be the biggest issue. Not impossible if it's relatively low value, but not ideal. As ACG says, the whole Corna situation will be key - some adverse lenders have stopped lending altogether. I'm sure you won't need an 'adverse lender' based on what you've said, but if the whole market gets more risk-averse, it won't help you (especially if you're low deposit - high LTV).

I know it's easy to worry about the negatives, but remember many more factors than just the new job or the default will come into play - partner's credit history, the rest of your credit history, LTV, combined income etc.

If you can't get it removed, is the default showing as settled on all your credit files? If it's not, I'd start with getting it settled/updated ASAP (as the date of settlement also shows to lenders and will highly likely impact the credit score you achieve).

JGV

Somerset_La_La_La said:

Assuming it's full-time, employed, I don't think the work will be much of an issue at all with most lenders - especially as it's teaching.

The default will be the biggest issue. Not impossible if it's relatively low value, but not ideal. As ACG says, the whole Corna situation will be key - some adverse lenders have stopped lending altogether. I'm sure you won't need an 'adverse lender' based on what you've said, but if the whole market gets more risk-averse, it won't help you (especially if you're low deposit - high LTV).

I know it's easy to worry about the negatives, but remember many more factors than just the new job or the default will come into play - partner's credit history, the rest of your credit history, LTV, combined income etc.

If you can't get it removed, is the default showing as settled on all your credit files? If it's not, I'd start with getting it settled/updated ASAP (as the date of settlement also shows to lenders and will highly likely impact the credit score you achieve).

Somerset_La_La_La said:

Assuming it's full-time, employed, I don't think the work will be much of an issue at all with most lenders - especially as it's teaching.

The default will be the biggest issue. Not impossible if it's relatively low value, but not ideal. As ACG says, the whole Corna situation will be key - some adverse lenders have stopped lending altogether. I'm sure you won't need an 'adverse lender' based on what you've said, but if the whole market gets more risk-averse, it won't help you (especially if you're low deposit - high LTV).

I know it's easy to worry about the negatives, but remember many more factors than just the new job or the default will come into play - partner's credit history, the rest of your credit history, LTV, combined income etc.

If you can't get it removed, is the default showing as settled on all your credit files? If it's not, I'd start with getting it settled/updated ASAP (as the date of settlement also shows to lenders and will highly likely impact the credit score you achieve).

Thank you! Nice to hear some positives d it’s gotten me really worked up! (Obv have far too much time on my hands being stuck indoors!) 

I’m hoping to be working at least 30 hours a week considering the kids/my partner often being away and school/nursery etc. I expect our combined income to be at least £42,000 p/a bit this may be more!
 We have no idea what sort of figure we want to apply for yet but possibly around the £150,000 mark judging by the prices in our area, would that be way out of reach? I think we could save a little bit more if we really had to had to. 

The default occurred when I missed two payments, I’d got in touch and discussed with the company via telephone and explained when I would be able to make further payments, they accepted that and then went onto sell the ‘debt’ anyway on the 3/1/18, I then paid money to them on the date I’d said I would - 12/1/18, not aware it had been sold. When I went to make the last payment 2 weeks later I discovered it had been sold so cleared it with the debt collectors instead. The total was for £157 and the account was settled in the Feb and has been ever since so would be almost three years by the time we’re ready to make an application. 

As I said, I’m trying to get it removed but still waiting to hear back however will add a NOC if I can’t. Both our credit reports are fine otherwise with no other defaults or late payments. 

ACG

The things you mention are all issues, individually they can be overcome. The difficulty comes when you are combining different issues. That being said I do not think your issues are extremely bad so I think there will be options with or without the default, but if you can get it removed, it wont do any harm. 

MovingForwards

Do not add a NOC as that will prevent any automatic pass and require a manual (human) review at DIP /application stage.

ACG

MovingForwards said:

Do not add a NOC as that will prevent any automatic pass and require a manual (human) review at DIP /application stage.

I 100% echo this. 
A NoC does nothing but cause problems. You may pass the credit check without it, you definitely wont with it on there as the lenders computers can not understand NoC so it kicks it out for human intervention. It should not alter the eventual outcome, but it will delay it.