95% LTV mortgage on 650k house with default 3 years ago

ernesto_besto

We’re looking at a house that we love that is £650,000 and considering a 95% LTV mortgage with Nationwide. Our combined income is approx £150,000 pa (base) and I had a default (communications provider) of approx £500 in 2023 which was satisfied that same year. I’m waiting to hear from my broker but wanted to gauge other people’s experiences with nationwide. Do you think we have a good chance or likely to be declined given high LTV, loan amount and (satisfied) default 3 years ago?

ACG

It might be a tough ask at 95% with nationwide but worth a try I suppose.

There will be lenders out there though.

ernesto_besto

which other lenders for example? I can only see nationwide

ACG

https://forums.moneysavingexpert.com/discussion/comment/82127816#Comment_82127816

I wouldnt want to step on your brokers toes. They have a lot more information to go off.

Trust your broker, I am sure they are looking into Plan B just in case Nationwide do not accept it.

poseidon1

Not to be too much of a party pooper, but presumably you have already sold your shared ownership flat or its under a firm offer too enable you to pursue the new property?

ernesto_besto

https://forums.moneysavingexpert.com/discussion/comment/82128147#Comment_82128147

not a party pooper at all. Yes I sold that flat a few years ago and we have a house now which is on the market. If a 95% LTV on a 650k is unfeasible I’m very happy to walk away, just wanted to get a sense. It’s a toss up between buying somewhere smaller with a view to move in a few years or going for somewhere bigger now while we only have one dependent and salaries are likely to increase (we’re both public sector)

ACG

Its certainly doable. Its just more a case of whether you get high street or whether you have to look at a smaller building society and pay a bit of a premium (maybe 0.5%) for a couple of years.

There will be more than just nationwide on the high street who will consider it, but it will be subject to credit score and so could be a little tricky at 95%.

penners324

A few years of paying off the current mortgage, especially with that joint income might be the sensible approach.

ernesto_besto

We have to move due to work so debating whether to port our existing product with a little additional borrowing, or move into a bigger place with a 95% LTV mortgage so we wouldn’t need to move again for a good while.