Debt prior to mortgage approval

herewego123

Hi guys

What sort of debt did you all have when your mortgages went to full application?

We are due to go full this week after getting an AIP last week from them and just curious all your experiences? 

Also, did your broker disclose all debt or credit issues to the lender prior to full application? 

Regards 
M

ACG

Dont worry about others. 
I have submitted an application where a couple had over £100k on loans and credit cards. But they also had very good incomes and a small mortgage. 

As for the debt and credit issues - legally it has to be disclosed. But it is pointless trying to hide it, you would be surprised at what they know... They still surprise me at times now. 

herewego123

ACG said:

Dont worry about others. 
I have submitted an application where a couple had over £100k on loans and credit cards. But they also had very good incomes and a small mortgage. 

As for the debt and credit issues - legally it has to be disclosed. But it is pointless trying to hide it, you would be surprised at what they know... They still surprise me at times now. 

Hiya

Aw wow that's crazy.

All my credit commitments are settled and paid off. I have an open credit card with 0 balance. I have no debt.
Salary is 33k
In the past however had a few defaults nearly 4 years ago and a couple of missed payments just over a year ago so wondering what my chances are if I'm honest.

Thanks for any help 

ACG

The debt you had that has been paid off - that has been paid off. It can take up to a month to be reflected on your credit report so if recent it may still show as being active but thats not the end of the world.

The defaults - 100% there are lenders who will be ok with them. You may get normal rates, you may have to pay a bit of a premium, it is difficult to say for sure as it depends on your case as a whole. 

Similar to the defaults, the late payments can be overcome. But again you may need to pay a premium. If it is showing as 2 x 1 late payments that is easier to overcome than one account that went 3 months in arrears (ie shows as a status 3). 

The size of deposit will play a part, who the adverse was with, where your deposit came from etc etc. Speak to a broker. I think with a 15% deposit you have a very good chance. Less than 15% and it starts to comer down the details.