Have I destroyed any chance of getting a mortgage in the next 6 years?

gilliweed

My partner and I are forward planning to hopefully get a mortgage next year. We aimed to use the Barclays family springboard mortgage to put down a 5% deposit and my dad has offered to put down the 10% the springboard requires.

In 2016-2018 I managed my money poorly and was in lots off debt. I managed to fix my spending and paid off £20k of debt. I now have about £2.5k which would be cleared by the time we apply. 

However I looked at my credit report with ClearScore and realised that my credit is absolutely riddled with late payments. I was surprised because even though my financial situation wasn't good I didn't think I'd ever fallen deeply in the hole. All of them were with First Direct and after some research I've discovered that FD report bounced DDs immediately to credit agencies, even if the DD is cleared later that day. So, I have 10 "missed" payments.

I'm devastated. The last of these was early 2018 which means they won't drop off until 2025. 

Have I just scuppered any chance of me and my partner getting a mortgage before 2025? I'm guessing that there are brokers who know where to go for a mortgage lender who doesn't care so much, but we were hoping to go for this springboard mortgage and I'm guessing we'll get nowhere with 5% to put down instead of the 15%.

I'm just sick to my stomach and devastated, and wish I'd never had an account with FD as apparently they're the only bank to do this. Is our dream dead?

DCFC79

Why not speak to some brokers and see what they say.

bigjav

Remember the main criteria is affordability. I managed to get a mortgage with a ‘fair’ score on Experian. With 4 defaults for either unpaid phone contracts or a credit cards with multiple missed payments👍

gilliweed

Our affordability I think should be Okish. £115k household income looking to borrow £320k (if we can get the springboard 15%). No kids, own our car outright and (by the time we would apply) no debts. But I'm just terrified that the 10 "missed" payments (which I do not personally feel are missed, late at best) have destroyed our chances.

[Deleted User]

bigjav said:

Remember the main criteria is affordability. I managed to get a mortgage with a ‘fair’ score on Experian. With 4 defaults for either unpaid phone contracts or a credit cards with multiple missed payments👍

Were you applying for a mortgage with Experian?

[Deleted User]

gilliweed said:

My partner and I are forward planning to hopefully get a mortgage next year. We aimed to use the Barclays family springboard mortgage to put down a 5% deposit and my dad has offered to put down the 10% the springboard requires.

In 2016-2018 I managed my money poorly and was in lots off debt. I managed to fix my spending and paid off £20k of debt. I now have about £2.5k which would be cleared by the time we apply. 

However I looked at my credit report with ClearScore and realised that my credit is absolutely riddled with late payments. I was surprised because even though my financial situation wasn't good I didn't think I'd ever fallen deeply in the hole. All of them were with First Direct and after some research I've discovered that FD report bounced DDs immediately to credit agencies, even if the DD is cleared later that day. So, I have 10 "missed" payments.

I'm devastated. The last of these was early 2018 which means they won't drop off until 2025. 

Have I just scuppered any chance of me and my partner getting a mortgage before 2025? I'm guessing that there are brokers who know where to go for a mortgage lender who doesn't care so much, but we were hoping to go for this springboard mortgage and I'm guessing we'll get nowhere with 5% to put down instead of the 15%.

I'm just sick to my stomach and devastated, and wish I'd never had an account with FD as apparently they're the only bank to do this. Is our dream dead?

How ClearScore, Experian or anyone else giving you access to your credit files rate you is irrelevant.  None of these companies lend money and no lender uses the rating these companies have bestowed upon you.

People can still get mortgages with late payment markers, defaults and even CCJ on their credit files.  What the lending criteria for Barclays Springboard mortgage will be in 2025 no one knows or even if the product will still exist then.

If you think First Direct have incorrectly applied late payment markers to your credit files then contact First Direct and ask them to remove the markers.

SimonBck

OP, post in the Credit Ratings and Files forum about your late markers. I had a slightly messy credit file, but got some great advice on what to say to lenders to remove incorrect markers. I ended up with a mortgage offer from HSBC who I believe are one of the more stricter lenders. 

gilliweed

Lover_of_Lycra said:
None of these companies lend money and no lender uses the rating these companies have bestowed upon you.

I never mentioned credit rating. I mentioned missed payments marked on my file. As far as I'm aware, most mortgage lenders absolutely do look at these marks? It's in the MSE mortgage guide. 

Lover_of_Lycra said:What the lending criteria for Barclays Springboard mortgage will be in 2025 no one knows or even if the product will still exist then.

I don't intend to apply in 2025. I intend to apply next year. Yes, I know the Springboard mortgage might not be available next year but I have to plan for what I know. I mentioned 2025 as that is the year by which these black marks would no longer be reported when I apply for a mortgage.

Lover_of_Lycra said:
If you think First Direct have incorrectly applied late payment markers to your credit files then contact First Direct and ask them to remove the markers.

I don't believe First Direct have incorrectly applied late payment markers. In fact they haven't even applied any late payment markers, they've applied missed payment markers. They haven't done so incorrectly, but they have done so a lot harsher than every other provider it seems. Every other provider would only put a missed payment marker on your credit file when you have been in arrears for only 30 days and it seems pretty much no others outside of the FD/HSBC group mark bounced DDs (resolved in hours) as "missed". I don't think they've incorrectly applied them but unfairly marked them.

DCFC79

They look at your history but not your rating as they dont see it.
They may score you but this is based on your credit history plus the i formatoon you provide on applocation.

You may as well check your credit files with the other 2 agencies, it will prevent any shocks so get any issues sorted (not all lenders report to all 3 agencies so there could be something untoward on 1 of the other 2).

gilliweed

DCFC79 said:

They look at your history but not your rating as they dont see it.

But I never mentioned my rating. I am talking about my credit file, not an arbitrary rating.

SamJ35

You should definitely speak to a broker. It may be the case that some lenders will lend to you, but I can't say whether Barclays would under their family springboard mortgage. That's something you'd have to ask them, and you can probably ask them casually before applying or anything like that.

If it is not possible to use their springboard product, then you would need a broker to tell you how much you could lend in your situation and then work towards a traditional mortgage, which would depend on how much you have saved/can afford/how much the property is you want to buy.