Agreement in principle with HSBC but have a poor credit rating

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saffy135
saffy135 Posts: 12 Forumite
edited 15 May 2018 at 4:48PM in Mortgages & endowments
I have an agreement in principle with HSBC who have done a soft credit check and said I can borrow 108K which is a 90% LTV. I have checked my credit rating and it is poor using Noddle. I had 15K on various credit cards and an overdraft of 4K which I have paid off and reduced my credit card debt to 3K. My fear is that I might be rejected when I apply for a full mortgage, the credit cards have paid off have but not been reflected on my credit file. Can anyone give me some advice, I don't want to be going through for the full application and then getting rejected.

Thanks

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  • firstbuyer
    firstbuyer Posts: 165 Forumite
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    10% LTV seems really low? Do you mean 90%?
    Finally completed on our new home
    Cladding Scandal Activist
  • Slick88
    Slick88 Posts: 31 Forumite
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    Hi

    From my own experiences I applying for a mortgage it seems that all mortgage companies really care about is if you can afford repayment and beat the stress test.

    As long as you sit have CCJs, missed payments etc you should be fine.

    Your remaining debt will eat into the amount you can have though if your DIP didn’t take it into consideration.

    We were told we could have 240 on our AIP. But when our finances were taken into account (I have about £15k on credit cards) the amount offered was reduced to around £185k
  • Slick88
    Slick88 Posts: 31 Forumite
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    Sorry that should read as long as you don!!!8217;t have CCJs etc.

    Also. If you spend a few mins searching around this forum you!!!8217;ll see most of the MAs staying that your credit score is useless as lenders have their own criteria you will be judged on.
  • saffy135
    saffy135 Posts: 12 Forumite
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    Sorry I meant LTV of 90%
  • saffy135
    saffy135 Posts: 12 Forumite
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    Thanks I paid off most of my credit cards and got my balance down to 3.4K, my DIP is taking the reduction into account.
  • Neutrinno
    Neutrinno Posts: 310 Forumite
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    Ignore the credit score on Noddle, I can't stress this enough. It means nothing. Each lender will score you in their own unique way, HSBC are so far happy with how you have scored. Your credit reports won't update for a month or two to show CC's repaid. If you have stated you are repaying the cards or they have been repaid then they will take this into account, not what the reports say.
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • saffy135
    saffy135 Posts: 12 Forumite
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    One more thing that worries me is that I'm on a 2 year fixed year contract which started in Feb 17, not sure if they require permanent employment or if a 2 fixed term is suitable.
  • saffy135
    saffy135 Posts: 12 Forumite
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    Would anyone know what info HSBC would require to verify your employment if employed on a permanent or would they contact the employer?
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