Worried about mortgage credit check

[NickMyLipple]

So, we have decided on a new build using the Government help to buy scheme, with a 20% equity loan.

In theory, we can afford to borrow the amount we would like (have an AIP from London and Country, but they don't do a credit check) and we are not worried about overall affordability.

I am, however, worried about credit checks. I defaulted 5 years ago (drops off in October) on one debt (A student overdraft - I forgot to change my address and literally forgot about the account). It caught up with me and I immediately paid in full. This shows as a default but obviously is now settled.

I have otherwise squeaky clean credit and have never made any other missed payments.

My credit score is reasonable, but not brilliant.

My partner has had lots of credit in the past, but apart from our cars, everything else is paid. His score is slightly higher than mine, and he has no missed payments.

Does anyone have any clue as to what our chances might be, of getting any mortgages all - even if the rates aren't great?!

I don't know but could your L&C adviser give you an idea? There's nothing that you can do about the score in the next couple of weeks but, if you were to "fail" this time, there are some simple things that would bolster it up if you were to reapply in a few months' time (make sure that you are on the electoral roll; don't apply for any new credit and, if possible, pay down as much existing debt as you can etc).

I'll ask him, certainly.

I've been working hard to increase my credit score. I'm been on the electoral roll for a year, haven't had credit for about 2 years and have no debt at all. I use my credit card monthly for bits and pay it back straight away. I'm at a loss!

I think you have a good chance if the affordability is okay as this seems to be the focus these days. I don't think one default means that you don't get a mortgage and also the banks don't see the actual score, they look at how you manage your finances and it sounds like you do a good job!

Ask your mortgage advisor and also perhaps pop on to the money saving expert and go into the mortgages section and ask the question as there are a few mortgage brokers that post on there and they are really helpful.

Good luck!

I have exactly the same Nick! My default is 5 years old now. Did you mention it to the broker? I was up front and set out my credit history and the amount I want to borrow and I also have an AIP from a broker. it helps that I am not pushing too hard on affordability and the broker said that since I have 10% deposit it should not be an issue, I have slightly less choice but it wont prevent me getting a mortgage. the more deposit you have, less of an issue it becomes. I would have a conversation with a broker. how much deposit do you have?

We are using the help to buy scheme, so in theory will need a 75% LTV.

We also have an extra £10k we can add in if needed, but would rather save that for furniture!