First Time Mortgage

Grippa

Hello,

My wife and I are looking for a first time mortgage. We both earn a decent wage, and we have a few outstanding debts but nothing major. However, the main issue is that we both have a far from perfect credit history (no CCJ) but several missed payments and a couple of Default Notices in the past.

My questions are....

1) What are the chances of us getting a mortgage?

2) Are we going to get any nasty surprises given our history?

Regards.

_Andy_

Hi Grippa and welcome to MSE

First things first, how much deposit do you have saved up?

Grippa

Hi Andy,

We have a £20k deposit available.

Regards.

_Andy_

Good stuff - what kind of property values were you thinking of?

Grippa

We are currently living in the property now as tennants. We are going to get an evaluation as soon as we can, but we think it is going to be about £170k.

herbiesjp

How old are the defaults?
How much was each one for?

You will find it difficult with that deposit, and the default history; 20%-25% deposit would be needed normally with that kind of credit history

Grippa

I'm not 100% sure I do have defaults on there - I suppose the only way to find out is to get an Experian report?

If I do have defaults they could be fairly recent but not for huge amounts - i.e. £100 to £200.

If this is the case, what can I do? Is the only option to wait 6 years until my defaults are removed?

This is all very traumatic as we just want to get on the property ladder, and thought we were finally getting there. To find out we might not be able to due is devastating.

herbiesjp

If the default amount is that low, you may have some options

But go via a whole of market adviser, as they will check with the lenders beforehand that you fit their criteria on such issues.

Grippa

Thanks for the advice,

Okay, I am a little confused now and was hoping you could clear something up for me. Looking back through some old paperwork, I have received a letter entitled Default Notice, that said that if I took the action recommended by the due date, then no further action will be taken against me with reference to this breach.

I made the payment and cleared the account.

My question is, do this situation count as an actual default on my credit file, or did I manage to avoid that?

Once again, thanks for your help.

herbiesjp

Well you need to see what it says on your credit file

You can get a free copy with Call Credit

Grippa

Thanks.

I went through the online process with Call Credit, and it wants £12 from me? Surely I'm just better off going with Experian?