Adverse credit

Gareth1985

Happy New Year folks!
I'm currently planning to apply for a joint mortgage around the end of this year or the beginning of next. How far back do lenders check for adverse credit (I'maware they stay on file for 6 years)? My partners include a settled default accout (£335 Dec 2018), some arrears and missed payments, but clean throughout 2019 and 2020 (and WILL be throughout 2021). 

K_S

@gareth1985 There are as many adverse products as there are scenarios, with rates proportionate to the level of adverse. Lenders that are ok with defaults in the past year, others need them to be 2+ or 3+ years old, some ignore telecom defaults, some are ok with defaults up to £500, etc. I hope that makes sense.

Based on the limited information in your post (one satisfied default, <500, no adverse since 2019) if the credit history has been clean for 2+ years and assuming 15-20% deposit, you should have options. When the time comes, do get in touch with a broker.

ACG

I agree, most of what we do is adverse. Assuming things do not get worse than they are now, I would expect you to be able to get high street rates - from what you have said. But that does not mean it will be for every lender.  We seem to be getting adverse accepted at high street rates again now, I dont think we are quite back to where we were 12 months ago but I feel we are closer to where we were 12 months ago than where we were 6 months ago in terms of options, which is definitely a good thing. 

Aylen

ACG said:

I agree, most of what we do is adverse. Assuming things do not get worse than they are now, I would expect you to be able to get high street rates - from what you have said. But that does not mean it will be for every lender.  We seem to be getting adverse accepted at high street rates again now, I dont think we are quite back to where we were 12 months ago but I feel we are closer to where we were 12 months ago than where we were 6 months ago in terms of options, which is definitely a good thing. 

Hi ACG,

I am self employed last two years are £115k & £118k.
still have ATP from previous help to buy scheme for a £600k purchase.. I have £30k deposit plus equity at £120k so only need £450k

last year I had klarna and very missed payments..a month each 5 months ago now. Cannot get DIP with Santander or Halifax..any ideas who would take a case like mine mainstream or specialist?

thank you