Applying for mortgage in current climate

Darrone

Hi guys,

Thanks for looking.

Me and my girlfriend was declined a mortgage in January this year with Bristol & West... was apparently down to a default/arrangement to pay on my loan with Tesco and one of my Credit Cards back in 2004. From then up to now, my repayment history has been perfect, Tesco loan is settled, another loan has been settled and also a Credit Card has been settled.

Still have one CC left though.

Have been in talks with Tesco since January and have had confirmation the default/arangement to pay will be removed by the end of next week.

Now, assuming it is taken off... would you say our chances of getting a mortgage has increased? Even in the current market? Would you even recommend getting a mortgage at the moment? Would it be better to rent for a year?

We're looking at buyng a place for £210k and we should have £20k saved in the next few months.

Any market experts willing to part with some advice?

Any help would be much appreciated.

Cheers
Darrone

IDN101

Not sure what jobs you both do or how much you earn- but you're going to be looking at HEFTY monthly payments. (that is, if someone will lend that much)

Have you thought about all the other associated costs in buying? Stamp Duty, Solicitors Fees, Land Registry, etc? That will eat into that £20K.

Regards,
Ian

Darrone

We have, however in January there were 95% LTV mortgages out there so it would have been ok...

We have a combined income of £57k

Thanks for the comments.

sammyjammy

If Tesco actually issued you with a default notice and the reason for this is undisputed then the default will remain on your credit record for six years from the date it was issued.

Sam

pretendgolfer

Could be worth a call to Direct Line, I got a 95% LTV offer from them in the last few weeks. If you ask them (clearly), they can give you an indication of your affordability before they run a credit search and also what products and LTVs are available. Obvisouly that won't take into account the credit history which will come into it if you go ahead and apply.

When I applied for mine I found that they used equifax to do the credit search and not experian, so might be worth checking to see what yours looks like first?

minimike2

Deals will be available but could be costly. When assesing mortagages lenders use credit scoring as well as credit searching - so even with the adverse data removed you may not fit "prime" profile if you have too low a score.