My boyfriend is looking at buying a house for us to move into. With our combined savings we are on track to be able to have a 15% deposit.
However, the issue is when we checked his credit report he has a red mark from an ex student account where the overdraft was exceeded and not resolved (negligence rather than abuse but bad nonetheless), this resulted in the credit agreement being ended. He has cleared the amount, and on his report states it was settled in Dec 12. I'm not sure if it was a 'default', but I'm assuming it is? (No CCJs involved).
Whilst I know the 'score' is irrelevant, he still had a healthy score, classified as good, so this hadn't dented his reputation hugely from the looks of it. He has no outstanding debt, and large disposable income as he currently lives with his parents. This did however mean he had no direct debits or utility bill to help build his credit through ongoing good payments. I got him to switch his phone contract to direct debit and he now has a credit card which he pays off in full every month.
He was declined for a credit card from Halifax in Jan, who he banks with, and who he is looking to mortgage with. Is this an indicator that a mortgage is a impossible dream? From what I have read here Halifax is the most lenient provider? (The OD issue was not with Halifax).
I am just wondering whether we have any shot, or if we should wait until the mark is over 12 months old. Is it better or worse that it was an overdraft rather than a bill? Any ideas? He's a first time buyer.
Further info, the default was for £320. He earns approx £24K including commision, and is looking to buy at around £70K (although calculators projected could borrow up to 100K) does wanting to borrow less make you any better a prospect?
However, the issue is when we checked his credit report he has a red mark from an ex student account where the overdraft was exceeded and not resolved (negligence rather than abuse but bad nonetheless), this resulted in the credit agreement being ended. He has cleared the amount, and on his report states it was settled in Dec 12. I'm not sure if it was a 'default', but I'm assuming it is? (No CCJs involved).
Whilst I know the 'score' is irrelevant, he still had a healthy score, classified as good, so this hadn't dented his reputation hugely from the looks of it. He has no outstanding debt, and large disposable income as he currently lives with his parents. This did however mean he had no direct debits or utility bill to help build his credit through ongoing good payments. I got him to switch his phone contract to direct debit and he now has a credit card which he pays off in full every month.
He was declined for a credit card from Halifax in Jan, who he banks with, and who he is looking to mortgage with. Is this an indicator that a mortgage is a impossible dream? From what I have read here Halifax is the most lenient provider? (The OD issue was not with Halifax).
I am just wondering whether we have any shot, or if we should wait until the mark is over 12 months old. Is it better or worse that it was an overdraft rather than a bill? Any ideas? He's a first time buyer.
Further info, the default was for £320. He earns approx £24K including commision, and is looking to buy at around £70K (although calculators projected could borrow up to 100K) does wanting to borrow less make you any better a prospect?