FTB with default…..help!

S_

I’m hoping someone will read this and be able to put my mind at ease or at least give me some hope. 

My partner and I are about to go to a broker to get a DIP (hopefully) to put an offer in on a house we’ve viewed. 

We have a 5% deposit (£17500) and the house is 350k (we have a combined income of 80k) 
Partner has good credit, I however have handled credit poorly in the past. 

I have 2 defaults on my credit report, one which is to be removed in July this year and the other Feb 2023. I have 1 missed payment from 2018 and a history of payday loans on my report - these haven’t been used since 2018! 

I also have Klarna payments on my bank statement and have heard mixed reviews about how banks/building societies view these with mortgage applications. 

My question is, how likely is it that we’ll be approved for a 95% LTV mortgage?! 

TIA 

S_

Also to add - I now only have a loan for my
phone which has a balance of £162 and a virgin credit card with a balance of £300 

K_S

S_ said:

I’m hoping someone will read this and be able to put my mind at ease or at least give me some hope. 

My partner and I are about to go to a broker to get a DIP (hopefully) to put an offer in on a house we’ve viewed. 

We have a 5% deposit (£17500) and the house is 350k (we have a combined income of 80k) 
Partner has good credit, I however have handled credit poorly in the past. 

I have 2 defaults on my credit report, one which is to be removed in July this year and the other Feb 2023. I have 1 missed payment from 2018 and a history of payday loans on my report - these haven’t been used since 2018! 

I also have Klarna payments on my bank statement and have heard mixed reviews about how banks/building societies view these with mortgage applications. 

My question is, how likely is it that we’ll be approved for a 95% LTV mortgage?! 

TIA 

@s_
- 3+ year old payday loans and missed payments should have no material impact on their own
- the defaults *may* be an issue, it'll depend on the details and the rest of the case. But if it is, it will show up at the soft-check DIP stage and the broker will try another lender.

Whether the numbers add up for the borrowing required with depend on the specifics. You could try playing around with a few lender affordability calculators and see what they return.
https://online.accordmortgages.com/public/mortgages/quick_enquiry.do
https://www.nationwide-intermediary.co.uk/calculators/affordability-calculator

Based on the limited info in your post, you should have options to borrow what you need at 95% LTV. Good luck with the DIP!

S_

@K_S

Thank you so much for your response! There’s nothing else on my credit file apart from what’s been mentioned above. The default that’s due to come off this year is for a short term loan but it doesn’t say defaulted it just says unknown, the one coming off in Feb 23 is for a Barclaycard. 
Have the meeting with the mortgage broker tomorrow so have everything crossed!