Previous Bad cred, 50% Deposit Mortgage?

dannyjlloyd

Hiya,

My partner and I are looking at buying a cheap house as we live in South Wales, we have found a little terraced house for £20,000 and we have £10,000 to put down, we both earn £12000 a year.

3 years ago I had some bad credit, I had a couple of cards which I ended up defaulting on, 12 months ago I cleared these. Will this present us with a problem in getting a mortgage now as we have a 50% deposit to put down on the property.

Any advice you could give us would be greatly appreciated

Thanks

Conrad

A couple of lenders can consider adverse credit.

The property could potentialy be a problem (I dont know your area, this is just a warning is all) as such lenders have criteria that requires the property to be readily saleable and in a fair or good area with fair or good demand.

I mention this because it's incredibly cheap so I'm wondering if this is down to the area etc.

Conrad

And also minimum loan size - £10k may be below this, I can't recall.

gemmacantan1

Hi ya,

I have a poor credit rating after defaulting on a loan and a couple of credit cards but we still managed to get a mortgage. The best thing you could have done was pay off the debts because this shows on your credit history. I'm still paying some of mine off! We remortgaged two years ago and used a broker to get us a good deal because our credit history was bad and we'd missed a couple of mortgage payments which made it worse but we got a good rate at 5.69% if we'd remortgaged with Abbey it was looking to be 6.69%.

Have you checked your credit history lately this good give you a better idea of whether to go main stream and contact high street lenders or whether to contact a mortgage broker. If you have an amazing deposit so that should give you a good rate with more lenders to choose from.

Conrad

Gemma

The credit crunch changed everything. There will only be a couple of lenders. Remember all those American Banks that used to lend to lenders such as Abbey, no longer do.

Abbey and all other lenders are having real problems raising money to lend out, and these rationed funds are then only set aside for prime borrowers.

ILW

I would have thought 10k was too small for a mortgage. When I looked some time ago 25k was the minimum. Seems virtualy a credit card at this price, but does seem very cheap.

maninthestreet

£10K is too small amount for a mortage, AFAIK. Have you considered a bank loan?