Adverse Credit Mortgage

declaration

Hi,

I have one default from around three years ago on a credit card. I have two loans, with no missed payments. The only blot on my record is the default.

Is there any possibility of getting an adverse credit mortgage around the end of 2010? I appreciate there is no crystal ball, but I know there are some people on here with a lot of experiences with mortgages.

I'd be grateful for anyones thoughts.

opinions4u

Save as much as you can - the bigger the deposit you have the stronger the position you will be in.

Maintain all your commitments.

See how the market pans out and see a whole of market broker nearer the time to get a feel for what is / isn't available.

_Andy_

How much deposit do you have saved up?
What kind of property values are you thinking of?
How much was the default for and is it now satisfied?

herbiesjp

If you can answer Andy's questions, we will be able to give you more guidance as to what you can expect to find, and what you should be doing to improve your chances

Declaration_2

Thanks for the replies, and apologies for not replying sooner.

The default was for £2700. I have been paying it off and now owe £1200. I have never missed a payment on the agreement, and it is ironic that I went into default after an administrative error that saw a whole months salary paid as a cc payment. The bank reversed the direct debit, but this meant that the CC wasn't paid and I was defaulted for it.

I live in a two bedroom flat that I'm currently renting. It's part of a development of 9 flats that were all originally for sale, but the market crashed. The landlord still wants to sell them however and I'd like to buy it.

The value is around 100K and I'd have a 10K deposit by the end of the year. My salary is 52K, and I have loan repayments (none of them missed) of £520 pm.

I have two credit cards that are now cleared monthly (no arrears ever). One of them is a 'credit rebuilder' card that I have had for four months and last month got a credit increase on it.

I was declined a mainstream mortgage in August. I believe it was not just my credit rating, but the fact that the flat is a 'new build' was also a problem.

It wouldnt be so bad, but the mortgage payment would only be £90 more per month than I'm currently paying in rent (I've never been late with the rent either).

Thanks for any help/advice you can give me.

herbiesjp

You do not default for 1 missed/late payment

Did you miss other payments - or do you think you default after 1 missed payment?

If the later, then that is incorrect - it will be classed as a missed/late payment and is not as serious, although can cause problems with lenders and mortgages.

Declaration_2

Thanks for the reply herbiesjp. It is definitely a default on my credit record, but it only shows up as 1 late payment. I called them up about it and explained the circumstances to see if they would remove the default, but they declined to do so.

The DCA which is recovering the money have repeatedly offered to negotiate a reduced settlement figure, which I have declined to accept. I owe the money, and I intend to pay it all back.

herbiesjp

You must have repeatedly missed the payment then - not just because of the administrative error.

You do not get a default after 1 missed payment - so I would investigate this further if I were you.

declaration

re-checked my credit file today. It states that in January 2007, I was one month late, and in February 2007 the account was defaulted. It's really frustrating, as this is the only adverse thing on my file. Looks like I will have to wait another three years before it drops off.

Batchy

dispute it... with the credit reference agency... then take it up with ombudsman if necessary... you have done nothing wrong it will take time to fix it but will be worth it at the end of the year!

declaration

Thanks Batchy. I called Egg (who defaulted me), a good while ago and they explained over the phone that the process was correct and it certainly sounded as though this was the case.

I may submit a request for a copy of my file to see if there is any way at all I can get it removed.

Back to my original question though, does anyone think that it might be possible to get an adverse credit mortgage by the end of 2010?

Cheers