Getting a mortgage with a bad credit rating?!

danielanthony

Once you get access to his credit files it should become clear. A default notice is not the same as a missed payment, it is worse. Having a look at your OH's file will show you which accounts are defaulted (including the date of default) and which have missed or late payments (shown as a coloured icon under each account).

From what I've been reading (and experienced), having a default is a mortgage killer, no one at the moment will touch you with a default. Late payments maybe ok but depends on number and how long ago, each lender is different in how they look at these.

But for all of the above, it will be 6 years after each default or missed payment that they will be removed. Things were simple for me as I had an IVA which started on 28/05/03 which means that by 28/05/09 all the accounts I defaulted on will be removed. You just need to make sure all CRA's have the correct information, I have spent the last 7 months trying to get my files at all 3 CRA's sorted in time for the defaults to come off.

Hope this helps.

Dan

LoopyPrune

Defaults usually lead to CCJ and I got my present mortgage with my record still showing my CCJ although settled in full 5 months previous. There is no hard and fast rules about who will and will not give out mortagages it just means you have to go further off the beaten track to get one and the % isnt always as good as walking into a high street branch. Honestly you need to speak to a broker cause you are in their perfect territory and they will also do a full credit check and sit down and go through it with a fine tooth comb. Its in their best interest as a new customer who could possibly lead to a repeat customer if he can find you a lender who you would never have found yourself. Just be prepared to pay a hefty fee for the broker doing the donkey work heard people paying as much as £1995 just in the broker fee before anything else but they will add this to the mortagage if possible.

mrjam

Conrad wrote: »

Ok, you said you are planning to buy in a year, so the simple answer is make sure you both pay everything on time in full, to demonstrate a mortgage is suitable for you.

If an underwriter is faced with an applicant that habitualy pays bills late, he is putting his own neck at risk by approving such an applicant, if said applicant then goes on to miss mortgage payments - you can imagine the underwriter being grilled by a compliance officer - "why did you approve this mortgage when you could see the applicant had a history of paying late".

So in other words present yourselves in the best light.

Now, just in case your other half is like many many people I see, I will add this note;
ALL people with late payment / adverse history ALWAYS say it was'nt really thier fault.

The reason I mention this is an underwriter in a lender will njot be interested in ANY exuses, and this is the reason - the underwriter herself does not pay things late, even if her nan dies, the dog is ill, they are away on holiday etc etc etc.

Therefore the underwriter thinks to herself - hmm, how is it am able to be organised and plan ahead, yet this applicant is not. We all know our car will break down, the vets bill will be £1000 and someone close to us might be ill, BUT WE STILL PAY ON TIME IN FULL.

The worst excuse an underwriter gets is "it was the Banks fault", but again this is NEVER the case.

Again the underwriter has her own Bank and knows Banks mess things up, so she always ensures there is plenty of money in the Bank to cover everything, no matter what.

This is not a lecture! Just useful to others to get them to see why underwriters do not exept exuses.

I myself often have to treble check a credit is made - its about being organised AND NEVER RELYING ON VERBAL ASSURANCES - i always get documentray proof something is paid if I have a doubt.

Best of luck

Conrad, sorry but you are a complete clown. OK, as someone who previously worked in financial services, let me just clarify what you are telling us as a "Mortgage Underwriter" which i am assuming you are.


ALL people with late payment / adverse history ALWAYS say it was'nt really thier fault. Absolute rubbish, ALL people ALWAYS say.... No generalisation on your part there then, making you a real none biased underwriter. Great from the offset for any applicant!

We all know our car will break down, the vets bill will be £1000 and someone close to us might be ill, BUT WE STILL PAY ON TIME IN FULL. That is all well and good if you have the funds available, im guessing this imaginary underwriter has never missed any type of credit available. Lets take for example a recent case i saw, a single mum whos husband tragically passed away, received no compensatory funds resulting from his death, had her house repossessed due to lack of income, and her child was in the process of being under investigation by the child welfare office due to deprevation, yes... she could not afford to feed him and was trying to get a bank account from us, and guess what.... we turned her down, she wanted the account to pay the miniscule benefits she did receive into. Not everyone has a perfect circumstancial lifestyle like your imaginary underwriter.

The worst excuse an underwriter gets is "it was the Banks fault", but again this is NEVER the case. Again, pure drivel. I myself have experienced various problems with Banks making errors, even as a senior member of staff for that particular insititution. I had a direct debit for yorkshire water cancelled for no reason whatsoever, leaving my water rates unpaid, i contact yorkshire water who could not take payment by card for one reason or another, and was told they must re-submit the direct debit request, which they subsequently did, this was not setup on the account by my bank (who yes, i worked for!) for a second time, one thing led to another and i ended up with a CCJ through absolutely no fault of my own, i even received a letter of apology from the bank which i sent along to the courts in order to have an amendment placed on my file, that was 3 years ago and after 3 years of chasing, that CCJ is still in place.

Again the underwriter has her own Bank and knows Banks mess things up, so she always ensures there is plenty of money in the Bank to cover everything, no matter what. This underwriter of yours leads an absolutely fantastic lifestyle, having the luxury of ensuring there is always PLENTY of money available is one that around 75% of the UK population, currently living month to month, do not have. You live in a dream world with all your idolisations and perfect circumstance, life is not like that.

Im sorry but this had to be said, i have seen an absolute shed load of your responses to mortgage questions, all exactly the same and it is about time someone showed you that you are speaking complete nonesense.

Finally, just to add something constructive to this discussion, i have a CCJ and various missed payments and successfully secured a mortgage with Abbey at 5.6% (£83,000 mortgage with £13,950 deposit). I couldnt even open a current account only at the end of last year.

There is hope and banks are still accepting applications. Please may i add before your respond with it, i got myself into big financial problems through my own fault entirely, other than the one situation with Yorkshire water and my bank cancelling the direct debit, everything else has been entirely my fault, and i am now repaying them mistakes. See conrad? I never said it wasnt my fault, i think that disproves that theory.

All the best, Jam

sophie21

I have also got various defaults on my credit file and have just secured a mortgage with Beacon 6% with 25% deposit, so it is possible...... I found Go Direct fantastic, the service is free and they were so helpful and keep you informed.

herbiesjp

sophie21 wrote: »

the service is free and they were so helpful and keep you informed.

As will plenty other brokers

sophie21

I'm sure they do, it was a personal opinion regarding Go Direct