Posted on 14 May 2012 by Sam
Hi, myself and my partner are 'looking' at getting a mortgage.
We earn 18K, 16.5K respectively.
We have little debt between us, around £1K
No dependants or loans ect and low out goings.
Looking at a house value of 130K with 10% deposit to borrow 117K or less. We have set aside 2-3K for fees and moving (so total of 16K savings)
My recent credit score is pretty good (Experian credit score 871)
However i have 3 defaults from 2.5 years ago on credit cards when i was ill.
I presume we would struggle to get a mortgage at this time, we applied to HSBC (my bank) but were rejected.
Just because you have been declined by HSBC doesn't mean that you will not be able to get a mortgage. HSBC have some of the tightest mortgage underwriting and in the present economic situation can afford to pick and choose you they lend to.
Your defaults are not going to make it easy for you to get a mortgage, especially at 90% loan to value(LTV), but as they were over 2 years ago I think there is a chance of success with a smaller Building Society. A provincial Building Society is unlikely to depend on an automated credit score when making the decision to lend or not and will be able to take into account any mitigating circumstances and changes to your situation which mean it is unlikely you will find yourself in the same position as before. There are specialist lenders who price their products to reflect any poor credit you have previously had making them more expensive, but they do not lend up to 90% LTV and so this avenue is not currently open to you.
I believe we can help you and that you would benefit from speaking to one of our independent mortgage advisers. Please call 0344 346 3672 and tell the consultant the date and title of your question, they will then be able to help you find the right mortgage for your situation.
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