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Mortgage Help - Bad Credit
Chegger
Posts: 10 Forumite
Hi there,
Firstly, this is my first post, so apologies if I leave anything out or if I do something wrong!
I am looking for some advice please, I currently earn a good wage and can get a mortgage (using a mortgage calculator online) of up to about £355,000, though I would not want my first time buy to be more that 250k if I am honest.
However, I was once young and stupid (only 4 years ago) and was very bad with money, I got into debt, I didn't pay it and only this last year or so I decided to take my head out of the sand and stop living in a dream world - so I paid back the debt I owed and to anyone that could prove I owed them something. This means that everything on my credit file shows settled but I have THREE defaults on there. I have three credit cards (low max value) which I use to put my petrol on and clear every month to try and improve my score, but it just doesn't go anywhere and I think its because of these defaults.
I really am desperate to buy, I have a little one due in Jan and I do not want to rent anymore - Do you think I would be able to get a mortgage if I had a guarantor - is there even a guarantor product on the market does anyone know?
Or, is there any lender out there that would lend to someone with defaults? I know they only last for 6 years, but that means I have another 2 years to wait and that is just to long.
I could prove to a lender that I have never missed my rent in 2 and half years or the 6 months before that in the property before - would that help?
Any advice would be so very much appreciated..
Firstly, this is my first post, so apologies if I leave anything out or if I do something wrong!
I am looking for some advice please, I currently earn a good wage and can get a mortgage (using a mortgage calculator online) of up to about £355,000, though I would not want my first time buy to be more that 250k if I am honest.
However, I was once young and stupid (only 4 years ago) and was very bad with money, I got into debt, I didn't pay it and only this last year or so I decided to take my head out of the sand and stop living in a dream world - so I paid back the debt I owed and to anyone that could prove I owed them something. This means that everything on my credit file shows settled but I have THREE defaults on there. I have three credit cards (low max value) which I use to put my petrol on and clear every month to try and improve my score, but it just doesn't go anywhere and I think its because of these defaults.
I really am desperate to buy, I have a little one due in Jan and I do not want to rent anymore - Do you think I would be able to get a mortgage if I had a guarantor - is there even a guarantor product on the market does anyone know?
Or, is there any lender out there that would lend to someone with defaults? I know they only last for 6 years, but that means I have another 2 years to wait and that is just to long.
I could prove to a lender that I have never missed my rent in 2 and half years or the 6 months before that in the property before - would that help?
Any advice would be so very much appreciated..
0
Comments
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What were the default dates/amounts and what £/% deposit do you have?
Paying your rent on time is assumed, you don't get brownie points for it.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
A guarantor does not help if the issue is a poor credit record.
If those defaults occurred over two years ago and you have a minimum 15% deposit, you are in with a chance.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
So according to Credit expert, my defaults are as below;
1. Pay Day Loan
Default Date: 27/03/2009
Settled: 16/01/2014
2. Credit Card
Default Date: 12/02/2010
Settled: 04/05/2014
3. Current Account
Default Date: 05/05/2010
Settled 04/05/2014
4. Pay Day Loan
Default Date: 23/09/2009
Settled: 17/11/2013
Apologies, there was actually 4 on my file, the last one (4), I thought had dropped off my file as I thought it was 2008 but it wasn't..
So a guarantor is not going to help
so my only hope is a lender that will lend to people with defaults?
Deposit wise, depending on price would be 10%-15%
Is there any hope for me do you think, or have I ruined my chances of ever buying!!0 -
Forget 10% deposit. A decent broker has a good chance of placing your case with a 15% deposit though.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Seriously, with a 15% deposit, you think I have a chance?
I never thought this would be possible... so if I just buy at 200k and put 30k down, I could buy do you think?0 -
We do these all day every day.
Obviously, your recent credit history and income and outgoings would also need to stack up.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
WOW... how do I get a decent broker?
Do I just google mortgage broker?0 -
You need one with experience in the bad credit arena.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Any idea where I can get that from please?0
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The first thing would be to check if you are in the ball park.
We have a 12 point checklist we use.
PM me and I will send it to you.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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