Adverse credit mortgage success?

Jessica2911

Just looking for a little advice as to whether anyone has been in a similar situation to us lately, and how it’s gone really!
My partner and I are looking to buy a new build with HTB. It’s reserved and we’ve got the ATP from HTB. 

Property is valued at £309,000 and we have the 5% deposit.
Mortgage of £232k and our salaries are £30k and £30.5k respectively. We both have credit accounts with zero balances, but also a £5k credit balance each - we’re both sitting at about 80% credit utilisation.
My Partner’s credit report is pristine. Mine WAS perfect apart from a blip of 12 months between June 2018 and July 2019. I owned a property with my ex, when she moved out I managed to keep up the mortgage every single month and managed most other payments, but missed a couple of credit card payments on the really tight months. 2 defaults were registered of £28 and £55 each (both due to my ex using credit accounts without me knowing - and both settled immediately).
sold the property in November 2019 and have cleared down on debt, had a perfect repayment history and not had an overdraft at all since this time.
We’ve got an AIP from Mansfield, but I wondered what experiences people have with them and whether anyone with a similar case has gotten through full app? Don’t seem to see much about them on this forum and got the standard anxiety about it!

haras_n0sirrah

I have used Mansfield a few times. They aren't the quickest but they get there in the end.
With defaults that size I am surprised it needs to go to mansfield unless there is something else showing. Have you used a broker or gone direct?

Jessica2911

We’ve gone with a broker that, so far, I cannot fault. My assumption is that it was probably because the bad spell of activity was fairly recent. The £55 default was registered in July 2018 and settled in the August. The £28 was a mobile phone registered and settled in April 2019, so not quite two years and I think that put off a lot of lenders at the moment. A couple of the missed CC payments were as recent as last summer as well, when I still had the old house on my own income.

LMJ10

Hi can I ask, have you sold your house before getting a reservation on your new build? We are looking at HTB but haven’t sold yet and want to reserve?

Jessica2911

Hey - I’m in the fortunate position that I sold my home back in November 2019 so that’s all tied off. 

Can you part-ex your house with the builder?

LMJ10

Jessica2911 said:

Hey - I’m in the fortunate position that I sold my home back in November 2019 so that’s all tied off. 

Can you part-ex your house with the builder?

Oh that’s good for you guys 

No we can’t as using HTB! Clock is ticking on the HTB and there’s only 2 properties left and we were told we can’t apply for a mortgage until Nov!! Doubtful the builders would let me reserve!

Jessica2911

Yeah you may get some pressure from the builders. We’re already getting a fair bit of breathing down our neck to speed things up. We reserved on 17 July so they would normally expect us to have exchanged by next Friday (28 days). Their reservation contract states that an additional 14 days is added on in HTB cases to allow for the time it takes to get the HTB approval, but they don’t seem to want to acknowledge that haha!
Our mortgage App only went in this week and judging by the comments of brokers on here, underwriters are taking ages! So there’s still every chance we would lose our reservation anyway