Mortgage and bad credit

Amy50

Im hoping to apply for a mortgage next year. Background history i have 15 missed payments over 6 years none in the last 2.5 years. I have an old satisfied default from 2015 for around £400 with Lloyds bank for an overdraft. My partner has excellent credit. Joint annual income of 60,000 and no debt at all. What are our chances of getting a mortgage? Deposit of 30,000 and looking to buy around 230,000.

K_S

@AmieLMurphy The positives are that you've had no missed/late payments in 24+ months, the default is satisfied, it's <£500 and 5 years old. Based simply on the above, you should have access to competitive rates.

Looking to borrow less than 3.5 times income with a 13% deposit, so essentially 90% LTV products which are fairly thin on the ground at the moment (but getting better by the day). If you can up the deposit to 15% your options should open up significantly.

Just to be clear, the above are just general comments, what exactly will be available will depend on the rest of your circumstances and what you are looking for.

Hope that helps and good luck!

ACG

Its a difficult question to answer in the current climate. If the market goes back to how it was in 2019, you could be looking at high street rates. If they dont, you will probably be looking at a slightly more expensive lender.

I think you should really be aiming for a 15% deposit, it will give you more options and more likely to be accepted on the high street. Plenty of positives though. 

I think the longer you leave it next year, the more chance you have of getting better rates, but that kind of depends what happens to the mortgage market. 

Amy50

Thanks for the replies. Any more advice please

K_S

Amy50 said:

Thanks for the replies. Any more advice please

@Amy50 Do you best to continue keeping your credit history spotless, save up to hit a 15% deposit and hope that the market doesn't get any more restrictive than it is now. Good luck

Amy50

Yes fingets crossed. Thank you