Do we have just too many red flags to get approved for a mortgage?

maddiemath

We decided yesterday to go ahead with our mortgage application, and we reserved a new build. We have an AIP from Halifax for a maximum of £257k.

The mortgage is going solely in my fiancé’s name (I am on a DMP with terrible credit rating) he earns £56k per year, we have a £12,500 deposit and are applying for the help to buy equity loan which would be £50k towards a £250k house.

I just have a few little worries, I know there are some mortgage brokers on here, and I know you can’t give an exact answer but just guidance could be great. I want to be prepared for if this isn’t going to go well!

My fiancé has an excellent credit rating on experian, we had some problems with him not showing as registered to vote, despite definitely being registered. We got this rectified last month with Experian. He has 2 credit cards, both with a £3k limit. We use them for day to day life and pay them off in full monthly, we don’t need to, but we do it boost his credit score. We’ve moved three times in the last 7 years (due to his work) we are now settled and no plans of moving again. He has been in the same job for 10 years, but has been gradually promoted from a £20k salary to his salary and position he has now (higher managerial)

My concerns are

• How recently we got his credit score to show he is registered to vote and whether this could cause an issue

• He applied on the Apple store for two Apple Watch’s on interest free finance through Barclays Partner Finance two months ago and got declined. He then bought these on a credit card instead and paid it off in full. I’m worried A) why he got declined with such a good credit score whether the recent application will affect us negatively 

• He bought a pair of Apple EarPods from Curry’s on finance at the same time for £20 per month, he checked today and this account has a £5k limit he didn’t know about. He’s going to phone and pay them off in full. 

• Over 7 years ago he had a very bad credit rating, lots of missed payments and defaults. He got these all sorted but about 3 years ago he checked his credit score and found two next credit cards from yonks ago he hadn’t paid. He settled these in full then and there.

• Our broker has asked for the details of who will be living in the house, and I’m worried my adverse credit rating will now ruin our chances despite me not being on the mortgage

I know no one can predict the future, but I feel like these are a lot of little red flags and he’s pretty confident we’ll get this mortgage and I just want to be realistic and prepare myself.

MovingForwards

First off, ignore the credit score and rating as they are not seen or used by mortgage lenders. It's the credit history they see and use when assessing applications eg credit cards, loans, late / missed payments, defaults, CCJs etc.

What negative history is actually showing on your OHs credit history and how old is it?

Did your partner provide the broker with copies of his credit reports from the different credit reference agencies?

Being registered to vote assists with electronic identification.

Asking who is living in the proposed new home is standard. There's a form which will need to be signed by you saying you will move out and have no claim on the property if your partner falls behind on the mortgage and has the property repossessed.

One thing to remember, this isn't your application as you are not on the mortgage, this isn't your H2B application for the same reason. 

A possible problem will be the deposit, if it's in a joint account or part is saved in your account. Lenders are not overly keen on having partners / spouses contribute to the deposit and not be on the mortgage.

@ACG is the resident adverse credit mortgage broker, although more of his clients have 'normal' credit history.

@haras_n0sirrah also deals with adverse credit history.