Mortgage with adverse credit history

[Mollz24]

Hi,

I hope I’m posting on the right topic! We want to move house (currently have a mortgage for about 90k) and have had our house valued at 200 so a fair bit of equity. We are looking at properties in the 260 mark however have a help to buy for 40 percent of the sale price that will neee to be factored into the new mortgage so probably borrowing around 190k in total.. My question is, my credit report says that I have an excellent score and is 6 marks off perfect, HOWEVER I have about 8 late payments from 2020 for a store card I totally forgot to set a direct debit for (total doughnut). The account has since been settled and closed but obviously the payments are still on my record for 6 years. I know credit score doesn’t count for much as it’s about credit history and I have got an appointment booked with an independent financial advisor, but was wondering if anyone had been in the same situation and managed to get a decent mortgage? I’m going out of my mind with worry that we won’t be able to remortgage for more (desperately need more space) and it’s all my fault. Partners credit history is perfect. Thank you!

My dd and her dh had to wait 2 years when they bought their second house. She bought the first house in her own name before they married (they were living together though). He had some missed payments a few years earlier and it affected his credit rating. When they did eventually get a joint mortgage, they could only get an 80% LTV offer because of his risk.

Yeah tbh it isn’t great. DH had one when we first ever bought from his student house when he’d moved out but bill was in his name and they didn’t pay it. It was £60 and 5 years old. He had to pay to settle it. Then we could only get a mortgage that was manually underwritten and 3%. We have no issues now it’s gone and have remortgaged multiple times and now have 0.99%.

You need an excellent broker

Eight late payments isn't easily explained away. One yes, but not eight. You need to speak to a whole of market broker. Chances are you won't get a mortgage with a mainstream lender.

Thank you everyone. I think I knew this deep down but was holding out hope that it wouldn’t make that much difference (wishful thinking I know!). I will have the appointment with the financial advisor but will prepare myself to be told it’s a no at present. Thanks for the replies x

I had a good credit score but had been on a debt management plan previously. It was all paid off but was still on my file. I got a mortgage with Halifax. Nationwide turned me down. This was last year.

I don't think this is such the big issue that it's being described as.

2020 is more than a year or so ago, and the payments weren't missed, they were late. Presumably you have plenty of other credit from around the same time which was being paid on time?

If this was such a huge problem, your credit rating wouldn't be described as 'excellent' - and you wouldn't be six marks away from a perfect score.

This is a non-issue. You'll be fine.

And I speak as someone who'e unfortunately collected a whole range of debt issues in the past, but is gradually rebuilding her credit score. If your credit score is "excellent", I can't see any problems.

If you're in any doubt at all, you can put a note on your credit file to say that the missed payments were due to an administrative oversight on a new account, not financial difficulties, as evidenced by the other excellent credit entries from the same period. If an underwriter looks at your file, this might be sufficient to answer any minor questions they may have.

You absolutely can and will get a mortgage with that..there's many things come into it. What type of debt it was - mortgage, loans, credit cards and car finance missed payments are worse.

You may need to get a slightly higher interest rate but you will absolutely get a mortgage. Contact a whole of market broker.