mortgage with bad credit

sparks85

I am currently wanting to buy my first home with my fiance, but i dont know whether to try and go for a mortgage as i was self- employed and accumalated bad debt (£38,600)

I have been employed now for 18mths and have cleared most of my debt and down to (£10,600) with another payment at the end of this month for (£2100), leaving me with a total of about (£8500) left.

My current credit score is 515, but last months loan payment hasnt been updated yet to experian, it was 576 then i applied for a credit card to rebuild my credit rating. which ive spent a little this month and paying off in full at the end of the month.

We have found a house we like its 130,000, but only need 110,000 mortgage, fiance tied into mortgage with her mum, but shes putting down the deposit. my salary £39000

Do i try and go for it after i pay the loan payment at the end of this month or wait and hope the house hasnt sold in a few months time??

am keeping my last bit of debt seperatly to the mortgage, minimum payments are £162.00

_Andy_

Can you clarify what you mean by 'bad debt'? Defaults, CCJs?
Also just to check - the mortgage and house purchase are just going to be in your own name?

sparks85

_Andy_ wrote: »

Can you clarify what you mean by 'bad debt'? Defaults, CCJs?
Also just to check - the mortgage and house purchase are just going to be in your own name?

no CCJs just missed payments, in past, on my experian credit report i have 1 account overdue for £206 with dell which was paid off last year, i have tried contacting them via post twice with no reply, waiting for experian update, if still not gone i will try again,

yes the mortgage and house purchase will be in my name only but the fiance will be on the deeds

luckyfool

sparks85 - that will probably not work. The mortgage lender will typically insist that both mortgage and title deeds are in the same names.

Mrs_Bumble

As Luckyfool says above the mortgage will need to be in the same name as the title deeds.

The Dell debt although it says account overdue does it on the report say that it is now settled? ARe you hoping that when they update the report the fact that it was overdue will be removed because it won't. If you are saying that it should say settled and it doesn't and you are getting no joy with Dell then write to experian with the proof that you settled the debt.

The credit report gives an accurate picture of what you credit history has been and so if there have been missed payments they will show, how long they were missed for, if there were any arrangements to pay they will also show. These will all remain on the credit file and so if these occurences happened in the last 5 years the lenders will ask you about them and depending on the severity of the missed payments will probably decline to lend.

So what exactly does your credit file show? How bad were the missed payments, how many months, who too, is there an explanation for the missed payments?

mdes

can anyone help????

i got into trouble with debt several years back and attempted to pay arrears through debt management company. this lasted a few months until my main creditor exposed my debt to a third party on the phone. after this i buried my head in the sand and didnt pay anything else.

i am now looking with my wife to get a mortgage but am afraid my history will not let us get a mortgage.

i have outstanding balances of 12743.00 + 1557.00

this is what is on my equifax credit search

these outstanding debts are over 6 years old

any advice on what to do???

Mrs_Bumble

You need to pay them, you have got no chance of obtaining a mortgage with that sort of history.

Have they defaulted you etc? CCJ's? You need to contact them and organise a repayment programme you can get information from National Debtline and CCCS

http://www.nationaldebtline.co.uk/
http://www.cccs.co.uk/

rosspwilliams

Mrs_Bumble wrote: »

As Luckyfool says above the mortgage will need to be in the same name as the title deeds.

The Dell debt although it says account overdue does it on the report say that it is now settled? ARe you hoping that when they update the report the fact that it was overdue will be removed because it won't. If you are saying that it should say settled and it doesn't and you are getting no joy with Dell then write to experian with the proof that you settled the debt.

The credit report gives an accurate picture of what you credit history has been and so if there have been missed payments they will show, how long they were missed for, if there were any arrangements to pay they will also show. These will all remain on the credit file and so if these occurences happened in the last 5 years the lenders will ask you about them and depending on the severity of the missed payments will probably decline to lend.

So what exactly does your credit file show? How bad were the missed payments, how many months, who too, is there an explanation for the missed payments?

I dont want to hijack this thread, but your answer here has helped me partially with a query that I had, and I wonder if you could help me with the next part.

All of my old debts will be shown as settled by this time next month (1 x CCJ that I have been paying off for the last 2 months and will finish paying next payday). Will the lenders take that into account when I am applying for mortgages, or will they see that my credit rating is bad because of these old debts (mostly 3-4+ years old) and reject me? I only currently have a £1000 credit card, with more than the minimum payment made every month and on time, and an overdraft that I have been reducing over the last couple of months. Thanks, and sorry Sparkes85!

Mrs_Bumble

How much was the CCJ for? were there any missed payments on other credit committments. Do you have a nice deposit to put down?

rosspwilliams

Mrs_Bumble wrote: »

How much was the CCJ for? were there any missed payments on other credit committments. Do you have a nice deposit to put down?

Around £500. I was completely unaware of it until I got my credit report a few months back, so have gone out of my way to clear it asap.

I do have defaults but from years ago, nothing recent. I think in the last year I have had no more than 6 credit searches, and maybe 1 or 2 in the last 6 months.

In regards to deposit, we will (hopefully) be using the HomeBuy Direct scheme. We applied last week and should hear back by next week.

My gf has got a spotless credit report, so if the worst comes to the worst she will have to apply alone, and we get a smaller place than we want, but needs must.

mdes

Mrs_Bumble wrote: »

You need to pay them, you have got no chance of obtaining a mortgage with that sort of history.

Have they defaulted you etc? CCJ's? You need to contact them and organise a repayment programme you can get information from National Debtline and CCCS

http://www.nationaldebtline.co.uk/
http://www.cccs.co.uk/

they defaulted me on 31/08/2004 for 12743 and 19/01/2004 for 1557

i tried to arrange payments before but could not deal with these two creditors