Chances of getting a mortgage?

[Lifeisstressful]

Hi,
After some advice... we are wanting to buy a new build using help to buy so 5% dep from us and 20% equity loan.
My husband has a recent default that he has tried to dispute but the company have refused so it will remain on his credit file with a note that he’s disputed it.

The last two years I’ve been ok but previously had late payments on credit cards when I went through a bad patch with health.

What are our chances of even getting a mortgage? I know most if not all high street lenders won’t touch us, especially with husbands recent default but are there companies out there that will?
We both have stable jobs that we’ve been in for years and rented for years never missing a payment. My credit rating is good but husbands is poor due to the recent thing.

Hope someone can help!

You would be best seeing a mortgage broker who will be able to advise what is possible

@gonewiththerain thank you, we will speak to a broker. I guess we just wanted to know whether they’d just laugh at us or not before we go to one!

No-one will laugh at you, but you do look high risk from a mortgage perspective so yes you will be restricted on lenders, also meaning you won't get a great interest rate.

@Dinosauraddict thank you, do you think it’s possible to obtain a mortgage just at a higher interest rate?

I'm not a broker so I don't know for definite. A couple of years ago it definitely would've been possible but I just don't know how much lenders have tightened up due to covid etc - sorry!

Thanks for answering, we’re going to have to bite the bullet and just see I think. We just don’t want to go back to renting. @Dinosauraddict

If you want a new build it might be worth visiting the sales office and explaining. They’ll have a broker they use who is able to get most people a mortgage, after all builders are in the business of selling as many new houses as possible.

Thanks @gonewiththerain they have given us the number for the people they use so I’ll call them next week. Thanks very much

Make sure they are a whole of market broker! A lot of brokers linked to new build providers are not highly rated! If it doubt, L&C are a good one to call. They'll give you an honest assessment and won't charge you a fee.

@Dinosauraddict that’s great advice, I’ll get onto them instead of the one the developers use. Thank you both, I feel less like I’m going to cry now haha

L&C are brilliant to just find out information- you don't have to go with them. I would avoid the mortgage brokers that the new builds recommends too.

Thanks @stormy11, I’m guessing you have experience of new build brokers?

We've just been approved a mortgage. I have good credit score but no income, my partner has a good income but appalling credit with defaults from last year and a satisfied CCJ which will be in his records for another 3 years.

The choice was limited to about 10 lenders, none of them high street lenders. We used an advisor who has access to all the lenders that are less known about. Our interest rate is higher which we expected but after 2 years we'll just get a new product with a better rate.

@FrostyGirl66 you have made my day, do you mind sharing which broker you used and who your mortgage is with?
I’m so pleased for you and I hope that we can be successful too!

Prestige mortgages is one lender that will lend to people with CCJs etc.

Our broker is a local man. I just put a message on my local Facebook page for recommendations. I'd rather not mention the lender. Our choice dropped to about 2 out of those 10 anyway because we're relocating to the highlands and not many lenders will lend to those postcodes.

Your broker, if you get one, will has access to all the lenders and will know which ones are likely to approve you.

Thanks so much everyone :)

Find a mortgage broker. I was a single mum, not on a fantastic income and with an ‘iffy’ credit score, my mortgage broker found me a great deal and with a very low deposit (back in the days when banks would give 100% mortgages) Don’t automatically assume you’ll be written off. Good luck, it’s an amazing feeling.

We had similar - our mortgage broker managed to get bank to see non payment as an oversight.

There is hope - it is just extra stressful and takes some luck. Our broker said that if a person saw our dispute we had a chance - if the dispute just went through computer it would have been a no.

If dispute hadn't been overturned we were told we could still get mortgage - just at much higher rate

Thanks so much @CatSmith @Talia78 I’ve booked us in with a broker my parents have used in the past.
Let’s hope he can work some magic for us, we’re happy to pay a higher percentage if it means we get on the property ladder and can remortgage are a later date.

At a later date 🤦🏼‍♀️