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Any hope?

Hi All,

I've been on here alot lately and been asking questions about whether now would be a good time for us to move.

Three years ago I had six defaults registered against me because I was having a hard time, it was stupid but I've maintained payments and last month paid off all my debt. They aren't showing settled on my credit profile yet and its extremely frustrating.

We've kept all our mortgage payments on time and all our other bills etc. My husband has an amazing credit score and while mine has improved over the last year its still pretty bad. We were planning on moving in the New Year but last week we found the perfect house at a bargain price. We have a 15% deposit but because of my credit history we can't find a mortgage. I contacted our current mortgage provider and as I feared they aren't currently lending. So I have contacted a broker who didn't seem exactly confident that he could help us.

Has anyone recently been accepted for a mortgage with bad credit? I know that with the economical climate people aren't lending but my husband has a good score and we don't want to borrow a large amount. Our deposit I'm told is reasonable. Does anyone know if there is anyone currently lending.

Any advice would be great.

Thanks

Gemma
Will be debt free by December 2016. Total debt £6207.35 . £188 per month on a DMP with Payplan.

4 Creditors = Capital One - Default, Vanquis - arrangement, Aqua - Default, Next Directory - Paid in full

Comments

  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    What are the figures you are looking at?

    Purchase price?
    Deposit?
    What is your income?
    What is his income?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • koexelek
    koexelek Posts: 7,847 Forumite
    I don'r rate your chances at 85%.

    I'd have thought 70% is the most you'd get a best. Even then, the rate would be horrendous
    I am a Mortgage adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • herbiesjp wrote: »
    What are the figures you are looking at?

    Purchase price? £187,000
    Deposit? £30k
    What is your income? £16500
    What is his income? £17000

    Please see the figures above, thanks
    Will be debt free by December 2016. Total debt £6207.35 . £188 per month on a DMP with Payplan.

    4 Creditors = Capital One - Default, Vanquis - arrangement, Aqua - Default, Next Directory - Paid in full
  • koexelek wrote: »
    I don'r rate your chances at 85%.

    I'd have thought 70% is the most you'd get a best. Even then, the rate would be horrendous

    What about 75 - 80%. Do you know what sort of rate we'd be looking at?
    Will be debt free by December 2016. Total debt £6207.35 . £188 per month on a DMP with Payplan.

    4 Creditors = Capital One - Default, Vanquis - arrangement, Aqua - Default, Next Directory - Paid in full
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    You will proably need at least 20%

    Rates at that level would be around 8/9%

    AT 25% deposit that comes down to 6/7% rates

    I thought the mortgage amount you were looking at was going to be lower seeing as you said:
    I know that with the economical climate people aren't lending but my husband has a good score and we don't want to borrow a large amount

    You are however looking over 4 times your joint income - so higher income multiples needed, making this a lot harder to get agreed (combined with the defaults)

    What you need to do is get an up to date copy of your credit file and get a second opinion from a broker with the facts in front of them.

    There may be one or two options, but this will need a lot more work before knowing if a lender could agree this for you
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • herbiesjp wrote: »
    You will proably need at least 20%

    Rates at that level would be around 8/9%

    AT 25% deposit that comes down to 6/7% rates

    I thought the mortgage amount you were looking at was going to be lower seeing as you said:



    You are however looking over 4 times your joint income - so higher income multiples needed, making this a lot harder to get agreed (combined with the defaults)

    What you need to do is get an up to date copy of your credit file and get a second opinion from a broker with the facts in front of them.

    There may be one or two options, but this will need a lot more work before knowing if a lender could agree this for you

    Thank you for your advice. What I meant by the low mortgage amount, is that my friend got declined on a mortgage for over £200k. Although we need to borrow alot. Because of the prices dropping we don't have alot of equity in our house. The 15% deposit is a combined effort of parents and equity. Maybe we will have to be disappointed.
    Will be debt free by December 2016. Total debt £6207.35 . £188 per month on a DMP with Payplan.

    4 Creditors = Capital One - Default, Vanquis - arrangement, Aqua - Default, Next Directory - Paid in full
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    What I meant by the low mortgage amount, is that my friend got declined on a mortgage for over £200k. Although we need to borrow alot. .

    A decline can happen for many reasons.

    WHat you have going against you are the high income multiples that are needed along with the defaults.

    The broker would check first with a lender in order to see if the mortgage can be placed at all. There is no point in applying if you do not meet their criteria which is maybe what happened with your friend
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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