Chance of Mortgage with Bad Credit History..

HelpWhereIcan

welshlass111 wrote:

Thanks to everyone for their advice - I went to my own bank yesterday re my mortgage (thought I'd give them first refusal!) and yes indeed they did refuse!

Just cos one computer says no, doesn't mean they all will.

welshlass111 wrote:

I have applied online to get my credit reports from Equifax and Experian this morning so that once I have found a broker/FA in my area I can go armed with all the information.

A good idea

welshlass111 wrote:

I did realise yesterday though that I don't think my name is registered to the house I am renting - I pay my landlord council tax and he pays it for me, and I don't think therefore I have been registered - could not being on the electoral roll be a major hurdle when applying for mortgages?

Showing on the elctoral roll is very important to some lenders' cerdit scoring systems so this could be enough to tip a 'borderline' case into a decline.

welshlass111 wrote:

Also I remembered that I did have one CCJ in 2003 for £120 which came out of my salary a month afterwards so that is cleared off as well.

Well, if it was paid off within a month of being registered, you will be able to apply to the court/credit reference agencies to have it removed. If this is possible, do this before making any more applications.

Even if it stays on your file, it should not be enough to stop you getting what you need, although it will reduce your choice of lender further.

Hope this helps

Kate_Reid

Can I ask a question along the same line as this thread? Please anyone with any advice, stick your oar in.
My partner is working full time and has one satisfied CCJ from year 2003. We can get a mortgage with Northern Rock but obviously at a slightly higher rate because of this little blip of my partners (and we want to borrow 100%)... Although I have good credit and nothing in my history that is bad, this doesn't seem to count for much as my partner is the bread winner. I am temping out of necessity at the moment but won't need to forever so I don't think I can make the application as it's only temping and could end at any moment. So any mortgage application is based primarily on his history...
Getting to the actual question:
When will the 'adverse credit' note dissolve from my partners credit history so we can get a normal mortgage and be eligible with most/all lenders? anyone know?
Thanks

HelpWhereIcan

Kate_Reid wrote:

When will the 'adverse credit' note dissolve from my partners credit history so we can get a normal mortgage and be eligible with most/all lenders? anyone know?
Thanks

Officially, up to 6 years from being satisfied. In practice, most 'drop off' someone's cerdit file 6 years after being registered.

Depending on the size and how long ago it was registered and satisfied, there may still be other lenders willing to do 100% now.

However, normal advice stands - see a whole of market broker who has experience of placing people with blips with prime lenders before looking at non conforming lenders. They will be able to gather all the pertinent facts and advise much better than is possible in a forum.

Hope this helps

welshlass111

Thank you for your help, you've been really helpful!

My landlord is abroad currently and all our bills are paid out of his account by direct debit.. should I contact the council to get on the electoral register?

I am quite worried that I won't be successful in my application for a mortgage now, stupid bank has put a right downer on my enthusiasm!

On another topic, how do i find a good broker/ifa on this website?? I've had a trawl and can't find a list anywhere, maybe its me...

:-S

HelpWhereIcan

welshlass111 wrote:

should I contact the council to get on the electoral register?

yes, but you may find that the records aren't updated until October

welshlass111 wrote:

I am quite worried that I won't be successful in my application for a mortgage now, stupid bank has put a right downer on my enthusiasm!

I would say this is an argument for using a broker - let them use their experience and knowledge of lenders to do the hard work and some of the worrying!

welshlass111 wrote:

On another topic, how do i find a good broker/ifa on this website?? I've had a trawl and can't find a list anywhere, maybe its me...

Best way to find a broker is through personal reccommendation or looking for a locally based adviser in the Yellow pages etc and checking them out by asking the questions Martin suggests in his article and speaking with a couple before choosing one. I would also ask how often they place people with previous difficulties with a prime lender.

http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1101649966,86816,

I would not think you should go for a telephone based or non advice service and I would see a face to face local to you (rather than a national firm), but then again, some would say I was biased.

sandanista

HelpWhereIcan wrote:

Not neccesarily as it will depend on age of the default, how much it was for and whether it shows as paid - depending on the answers to these, there may be lenders willing to do 100%.

Hope this helps

Thanks. For that. I have 3 defaults, two are satisfied over two years ago and were not for large amounts. My third which is 3 years old, I am still paying off (£769 from £1,680) and have not missed a payment since the arrangement was started.

HelpWhereIcan

sandanista wrote:

Thanks. For that. I have 3 defaults, two are satisfied over two years ago and were not for large amounts. My third which is 3 years old, I am still paying off (£769 from £1,680) and have not missed a payment since the arrangement was started.

Based on what you have posted, I would say that you are probably going to be restricted to 95% as a default of £1680 would need to have been paid off (possibly for one year) to be ignored by lenders who may have been available.

Having said that, there is a lender who would have done it, but has withdrawn their 100% products for the time being (service backlogs) and may reintroduce them in the next couple of months (not something to bank on though).

Hope this helps

sandanista

@HWIC You've been great. That gives me a huge incentive to clear the remaining £769 left on that default asap.

Many thanks.

welshlass111

Yes thanks HWIC you have been a fab help indeed!

Looking at the previous post by sandanista, I too am still paying off a debt, but mine is currently at £20k (from original £27k) and haven't missed a payment yet either - I have the 5% deposit to buy though.

Do you think this would hamper any application I make???

Thanks!

HelpWhereIcan

welshlass111 wrote:

Yes thanks HWIC you have been a fab help indeed!

Looking at the previous post by sandanista, I too am still paying off a debt, but mine is currently at £20k (from original £27k) and haven't missed a payment yet either - I have the 5% deposit to buy though.

Do you think this would hamper any application I make???

Thanks!

Only in that the lender will deduct the annualised monthly payment from your income before they work out how much you can borrow. i.e if you are paying £100 pm, they will deduct £1200 from your annual income as being already spoken for.

There are some lenders that will insist on defaults being settled and others who will not (depending on how old they are) - do not see a problem with you getting 95% based on what I recall you have posted.

Hope this helps