Mortgage application

[Cheffie100]

I was wondering if there were any mortgage experts out there.

This is a strange one. I have a 'fair' credit score with Experian and 'poor' with equifax probably because I had a maxed out credit card at £2800 which I paid off in full last week. It was a barclaycard and the account has now been closed. I also had 1 default payment on it in last 6 months. I am hoping once it updates on my credit file that my credit scores would dramatically improve.

My husband and I have just had an offer accepted on a house. He has a really good credit score. We have a 70% deposit. He is going to the bank to get a mortgage for the remaining 30% on Tuesday but I'm really worried that my recent debit and credit score will scupper our chances. What do you think? Other than this we manage money ok. I am a stay at home mum with no income.

He is going to see Barclays so they will be able to see the barclaycard debit and that its been paid but also the default.

What do you think? I'm loosing sleep on this one. Thanks

A default means something was never paid - if your barclaycard is now paid in full it shouldn't show as a default but as a late payment which should improve things.

If the 30% you need a mortgage for is less than 3.5x your DH income then it might make more sense for the mortgage to be in your DH name only (though you must still be named as co-owner on the deeds of the house) - this often wouldn't be accepted by banks with more typical deposits of 5%-25% but as you are only needing a 30% mortgage it could be OK. You could theoretically own your "half" outright paid in full, and DH owns his half with a 60% mortgage and 40% deposit.

Thank you for taking the time to reply. It's really appreciated. I too hope things will go in our favour. I am also really worried my credit record won't update in time. I'm checking it every day and have asked the lenders to update but don't think it will be done ahead of the meeting.

Any other opinion ions or advice out there from anyone would be gratefully received

Hi There - the biggest piece of advice I can give would be to go to a whole of market broker. Honestly, it's the best thing to do as they will take your circumstances into account and they will know which lender will be the best fit for you.

I think it would be possible for this to be in your husband's name only, but you would be counted as being one of his dependants. Again a broker would let you know whether you are best on or off the application.

I hope this helps - I am not saying go to a broker because I think you will have a problem, but because I think a broker will find you a good deal and will know how best to handle this.

Good Luck I hope it goes well for you.

I second going to a whole-of-market broker. Walking into a bank is pot luck as to whether you get a good deal or not, whereas a broker will match you to the most appropriate lender for your circumstances.

It will make a big difference if it's a default or a late payment.

A late payment is just that, paid but paid late.

A default is only applied after several moths of no payments.

Which was on your file?

Your credit file definitely won't update by Tuesday if you only paid the card off last week.

Credit reference agencies only send updates once a month and they're generally a month behind your latest bill with their update values.

A whole of market broker is absolutely the way forward.

Agree with Bearbehind

Although I do think you should speak with a whole of market broker too.

Thanks for everyone's responses. Much appreciated and has given me food for thought. I checked my credit file and it was a late payment and not a default. Here's hoping it will all be ok