Defaults older than 2 years…can we get a normal mortgage?

DPL8954

Hi all,
Me and husband currently have a mortgage on a house we brought 6 years ago for £165,000 with a 5% deposit. This was our first house and we had no problems getting a mortgage.
We are now looking to upsize, and hoping to be able to buy a house around £280,000-£300,000. We have around £50,000 equity on our house.
Issue is my husband has a very poor credit rating, and has had defaults on his file. Although these are all over 2 years old now and have been paid off.
I have an excellent credit rating.
Our combined debt is £13,000, and our income is £82,000.
How likely is my hope to upsize? Mortgage calculators seem to give such varied answers!! 

TIA 🤗

Brie

Sounds like it might be a case of talking to a mortgage broker.

But before you do have you checked both your credit records?  Just to see if that's actually all the debt or if there's other things that can be tidied up.

Look for overdraft even if it's not being used.  Likewise credit cards that have a high limit that you aren't using.  You might want to reduce both of these.  When you apply for a mortgage they will consider whether you can pay for all the usuals plus the mortgage plus if cards and the overdraft have been maxed out.  

Also - phone contracts, monthly payments for home or car insurance, car finance.  They are all debts too.

Also make sure that you are both registered to vote as it makes you look stable.  

ACG

Its difficult to give a definitive answer as the devil is in the detail. 

If they are £50 defaults for a mobile phone bill then its quite possible. If they were £2,000 defaults for a credit card its less likely. It also depends how many there are - 2 is easier to overcome than 20. 

On the upside, good incomes, your own deposit, satisfied (most defaults I see are unsatisfied) so there are some positives. 

I think worst case scenario you might be looking at a quirky little building society who does not credit score. Rates might be a little higher but I dont think any horrific and certainly not the full on adverse rates. 

But as mentioned, I think it is one for a broker. Get his credit reports and fire them over to someone to have a look through it. 

DPL8954

That sounds more optimistic than I was expecting so thank you ☺️ we are due to go to mortgage brokers soon and we’ve got our credit reports ready for them to see so I’m keeping my fingers, and toes, crossed!! Thanks so much 🤗🤗

ACG

We do a lot of adverse, the amount of times I hear "I know you probably wont be able to help...." Half the time its fairly straight forward. 

Yours doesnt sound overly complex. Getting a mortgage will be fine, the rates is probably where most of the time researching would be spent. You'll be fine.