First time buyer - Not a great credit rating

maanse

Hello,

I am after a bit of advise on how/where to proceed with my mortgage application. Myself and my partner are currently looking to purchase a house at £257,000, we have a 10% deposit saved. After speaking to a broker, they have advised that none of their products will be suitable unless we can bring the deposit up to 15% due to our credit history.

We are both in fairly decent jobs earning a combined £69,000, we have some finance in the region of £11,000 (mostly all mine) - all paid regularly and no missed payments etc. My credit score appears good (no defaults, CCJs or bankruptcy etc - with a score of 999 on Experian), my partners score is a lot lower and shows some defaults (satisfied) from around a year ago.

Where would be our best chances at getting a mortgage with 10% based on the above info?

Thanks in advance.

K_S

@maanse When were the defaults registered, how many and for what amounts?

maanse

K_S said:

@maanse When were the defaults registered, how many and for what amounts?

The defaults were registered on the following dates with the following amounts.

July 2016 - £1,117 *Shows on report as Satisfied

June 2019 - £453 *Shows on report as Default with Experian and Transunion and Unclassified with Equifax but balance was cleared in 2019

April 2020 - £3,303 *Shows on report as Satisfied

K_S

@maanse Unfortunately the defaults are too sizeable and recent to have options with a 10% deposit. That's likely why the broker couldn't place you.

Capri84

@K_S. I have zero issues on my reports, but my wife has a string of 3 red dots for an issue with EE back in 2017. Currently trying to resolve this with them to have it removed as it was their mess up... but would that alone cause issues? It shows as 3 late payments in a row. Everything else on file is green. Would this get in the way of 95% deals?

K_S

Capri84 said:

@K_S. I have zero issues on my reports, but my wife has a string of 3 red dots for an issue with EE back in 2017. Currently trying to resolve this with them to have it removed as it was their mess up... but would that alone cause issues? It shows as 3 late payments in a row. Everything else on file is green. Would this get in the way of 95% deals?

@capri84 It's hard to say unfortunately but a DIP is the best indication in this case. If it gets past DIP (or the DIP gets referred to a manual review) I would not expect it to cause significant issues.

Capri84

DIP is currently away for a manual review... is the EE issue likely the one to have flagged it up? (Affordability was passed and there’s nothing else on credit reports other than the fact we’ve only been at current address for 1 year) 

K_S

Capri84 said:

DIP is currently away for a manual review... is the EE issue likely the one to have flagged it up? (Affordability was passed and there’s nothing else on credit reports other than the fact we’ve only been at current address for 1 year) 

@capri84 Potentially. Or it could just be that they're referring all 95% LTV apps for manual review, like Nationwide did for all self-employed DIPs.

maanse

K_S said:

@maanse Unfortunately the defaults are too sizeable and recent to have options with a 10% deposit. That's likely why the broker couldn't place you.

Do you think I might fair any better if I can get the deposit up to 15%?