We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Any hope?

gemmacantan1
Posts: 92 Forumite
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
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
4 Creditors = Capital One - Default, Vanquis - arrangement, Aqua - Default, Next Directory - Paid in full
0
Comments
-
What are the figures you are looking at?
Purchase price?
Deposit?
What is your income?
What is his income?I am a Mortgage AdviserYou 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.0 -
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 horrendousI am a Mortgage adviserYou 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.0 -
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, thanksWill 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 full0 -
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 full0 -
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 youI am a Mortgage AdviserYou 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.0 -
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 full0 -
gemmacantan1 wrote: »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 friendI am a Mortgage AdviserYou 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.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 348.2K Banking & Borrowing
- 252.1K Reduce Debt & Boost Income
- 452.3K Spending & Discounts
- 240.7K Work, Benefits & Business
- 617K Mortgages, Homes & Bills
- 175.6K Life & Family
- 253.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards