Mortgage Help - Adverse Credit

Poesklap

Hi folks, very new here and to mortgages generally. I've put an offer in on a house that has been accepted. The estate agent hasad a helpful mortgage broker who put in an application through a soft credit search that was declined due to my partner having defaults in 2018. These defaults were £500 and the broker says our affordability is otherwise good. Can anyone recommend my next step? I don't want to lose the house, I need to move forwards and quickly.

[Deleted User]

Are the defaults now satisfied?

ACG

What percentage deposit do you have? 
How many defaults?
What has the broker said? 

I think in the current climate you may need a 20-25% deposit, although it kind of depends on the details and you may get away with 15%. 

ontheedgeofmyseat

There are number of lenders that can help you, however, since covid a lot of them are no longer on the market. The difficulty you have is that defaults are fairly fresh and there are few lenders that would consider them. Depending on whether or not the defaults are satisfied, Kensington Mortgages will allow defaults in the last 24 months (subject to meeting their core criteria) and Precise mortgages are of a similar mind. 

If you meet the affordability, the best option would be to have the mortgage solely in your name, as these types are lenders can be difficult to work with and application times can be lengthy. Thus, providing you with further delays in the sale.

Poesklap

Deleted_User said:

Are the defaults now satisfied?

Hi, yes. Long ago. We have no bad debt at all.

Poesklap

ACG said:

What percentage deposit do you have? 
How many defaults?
What has the broker said? 

I think in the current climate you may need a 20-25% deposit, although it kind of depends on the details and you may get away with 15%. 

That's also what we've been told. We'd only be able to stretch to 15% for a lower value property. I think we need to adjust our expectations in the circumstances.