Mortgage Chances - Adverse

Createcreatecreate

Hey all,

I know there’s been multiple posts about adverse credit mortgages but I haven’t seen a post like this recently with similar circumstances and I’m looking for an honest opinion from on what my chances look like. 

My income - £60k per year.
Adverse credit:
CCJ from October 2018 which was settled in June 2019 and less than £200.
Default from December 2018 which was settled in Sept 2019 and less than £150.
Both are roughly around 5 years old now.

Both down to missed payments for services and I’d moved address. Accept total accountability as I should have advised the companies of my home move.

My credit score is currently sitting around the fair mark and I have not missed a payment since the above. 

Received a DIP from Nationwide last week for a 10% deposit on £195k 2 bed flat. I’m also a first time buyer.

Total credit commitments of £850 per month with 18 months remaining and around £2k on credit cards which will be paid in full over the next month. 

Nationwide did ask about CCJ during DIP application, but didn’t ask about defaults, assuming this would show up during their soft credit search as it’s reported to all CRAs. 

What do my chances look like at getting a high street lender like Nationwide, or do you think I’ll need to move into specialist lender territory with larger interest rates? Or will I get a mortgage at all.

I know the outcome is out of my control, but any advice would be much appreciated. 

Thanks in advance!

Bigphil1474

Just keep at it - the computer might say no, or a human might look at the facts and say yes. Your income level is high compared to level of borrowing, so don't foresee any problems there.

ACG

I have to admit, I am a little surprised it passed the DIP with nationwide. 
That being said, I think 4 year old adverse, small amounts and satisfied, you are not in the realms of specialist lending. You should be looking at normal rates. 

Although just thinking about it, Nationwide are currently pricing to be top of the tables. So they might have relaxed their credit scoring at the moment to try and get more business on the books. 

Createcreatecreate

@Bigphil1474 Thanks for your advice. I am working with a mortgage advisor at present. They don’t foresee any huge issues with me approaching a more lenient high street lender like Nationwide. Will keep this thread posted when I know more.

Createcreatecreate

@acg I’ll be honest, I was surprised too and if I’m honest, pretty skeptical. Thanks for the advice and reassurance though. It’s just good to know there’s options if all else fails at this point. 

ACG

If you have a broker, trust them. 
Brokers have different ways of doing things (this is a great example), they have tried a lender I would not have tried and knowing where Nationwide are on the tables, they have probably got you something a little bit cheaper than I would have gone for. 

But if it fails, dont panic too much there will be a plan b and c and more before you get to the specialist lenders. 

Createcreatecreate

@acg Really appreciate your words of wisdom and reassurance. I’ll let you know the outcome when I have more information! 

alfie2632

Createcreatecreate said:

@acg Really appreciate your words of wisdom and reassurance. I’ll let you know the outcome when I have more information! 

Good luck.i will be following your progress if you update.  I passed the DIP I did myself on the nationwide site with 4 defaults. Unsettled ccj 5 years old and a 4 year old discharged debt relief order. Although not looking to apply till May 24. But like you. I'm skeptical about passing the dip soft search

ACG

alfie2632 said:

Createcreatecreate said:

@acg Really appreciate your words of wisdom and reassurance. I’ll let you know the outcome when I have more information! 

Good luck.i will be following your progress if you update.  I passed the DIP I did myself on the nationwide site with 4 defaults. Unsettled ccj 5 years old and a 4 year old discharged debt relief order. Although not looking to apply till May 24. But like you. I'm skeptical about passing the dip soft search

This is why this forum is good. I dont think I would have gone near nationwide with your situation. I learn too.
The only think I can think is that nationwide are trying to fill their boots at the minute and that is helping. 

But keep us in the loop, it helps me as well. Which in turn helps my customers.

Createcreatecreate

Hey @acg and @alfie2632

A quick update. 

I advised my mortgage advisor that I had a self applied DIP with Nationwide once my offer had been accepted.

Anyways, my advisor checked with our first option. At dip stage it came back as refer. The lender wasn’t completely satisfied with my score so we jumped into plan B.

Not sure if Nationwide was the first option, or if we went elsewhere due to interest rates. But it doesn’t look like Nationwide is on the table anymore.

Plan B is Accord. Mortgage advisor put the application in on the 29/11, hard search by Accord added to my credit report on 29/11 and valuation instructed on 30/11. The valuation is due to take place tomorrow.

Guessing they’ll just need to request additional documents at this stage if the valuation comes back ok. 

ACG

I would have been more inclined to try Accord if they were showing, they have been a bit hit and miss in recent months. I dont want to say you will be fine with Accord (in the sense of it being a done deal) but I think there is a reasonable chance you will get an offer with them.