Mortgage with satified deafaults of 4 years old

sortingmystuffout

Hi I am new on here so I apologize if this has been done to death but i could do with some advice for the future.

My situation is that I am currently in a DMP plan and at the moment i know I will not be able to get credit anywhere not even a normal bank ac!!!! whilst I am still on it.

I am looking at having it paid off next summer fingers crossed all goes to plan. I know that I have two defaults on my credit file both issued in 2006 so they are three years old currently.

My question is that when they are both satisifed next year will I be able to get a mortgage with good interest rates?

I am looking at buying half of my parents second home which they own outright so will have 50% down payment already . By the time I look at buying from them I will have two satisfied deafults at four years old.

So I guess my question is this how will a mortgage advisor see my situation of two satisfied deafults of four years old no missed payments on my dmp plan and a 50 % down payment will I be able to get good interest rates or still high ones because of my defaults?

If the answer is that the interest rates will still be high is there any way I could write the creditirs to get the satisfied defaults removed ? considering there age.

I hope that someone can advise me .

sortingmystuffout

Hi is there anyone that could maybe advise me on this thanks

StuTheDon

sortingmystuffout wrote: »

Hi is there anyone that could maybe advise me on this thanks

Hi There,

Firstly, you are not going to get the defaults removed even if they are satisfied. A credit report is designed to show an individuals credit behaviour so a creditor will want to know that you missed payments in the past, even if you have satisfied them. After 6 years they drop off I believe.

The best thing to do would be to get a letter of satisfaction from the two creditors that registered the defaults when you have paid them off. You can show these to the mortgage company.

A lot of the decision will be down to your LTV (Loan to Value). I am not clear how it is working with your parents, but if you need 100% for your share you will not get a mortgage. You really need a 10% deposit minimum and even then that will have high rates with a perfect credit history. You should really be looking at a 20-20% deposit in your case.

Once out of your DMP contact a whole of market Mortgage Advisor and ask them to shop around for you.

Good luck!

sortingmystuffout

but surely if i am buying half from my parents the half the they own will be consdered as the down payment it would be private sell

sortingmystuffout

thanks for the reply prehaps i didnt make thread clear enough my parents would be putting their 50% down as a deposit. I just rang a mortgage advisor for some advice on this and he quoted me 5.5% interest rate that £75,000 on a 25 year mortgage would be paying back £520 a month is that a good rate? I have no idea

bundubasher

i am in a similar situation but mortgage advisor has suggested platform on a product that allows/ignores defaults. i have had a agreement in principle for 75% borrowing at a fixed rate of just under 5% for 3years and 3.99% for 2 years, personally i am a bit dubious about these rates, they sound too good especially as the mortgage advisor says these are prime rate? of-course i wanted 85% or 80% but will have to see what i can do with topping up my deposit. anyone with experience with platform and these rates?

happybroker

bundubasher wrote: »

i am in a similar situation but mortgage advisor has suggested platform on a product that allows/ignores defaults. i have had a agreement in principle for 75% borrowing at a fixed rate of just under 5% for 3years and 3.99% for 2 years, personally i am a bit dubious about these rates, they sound too good especially as the mortgage advisor says these are prime rate? of-course i wanted 85% or 80% but will have to see what i can do with topping up my deposit. anyone with experience with platform and these rates?

Platform ignore defaults over 3 years old even on their mainstream range but you still have to pass a credit score though this hasn't been too stringent recently.

for OP, what will be available in a year's time is anyones guess I'm afraid.

ginvzt

Who knows how the economy be next year? There maybe even less available mortgage funds or higher deposits required? Maybe interest rates will be way up? It is like asking what are the lottery numbers for this weekend...

sortingmystuffout

Thank you for all your posts guys not been on here for a while. Think we are looking into the private mortgage option instead