Looking at possibly getting a mortgage...but...

gazfocus

I currently live in a rented house and my fiance and I would like to buy a house when we get married.

However, I currently have 6 defaults on my credit file. I am hoping that within the next 3 months, I will have agreed a settlement offer with the debt collection agencies and have these debts paid off..

My question is - Once these debts are paid off, I know I will still have the defaults on my credit file for some time but will they still affect my ability to get a mortgage even when they are paid off?

Thanks in advance.

LeeSouthEast

A settled default is better than an unsettled default, but it's unlikely you will be considered by any mainstream lender as a joint applicant, imo. I'm sure one of the mortgage advisors will have some better advice soon.

gazfocus

Thanks. Yeah, if anyone can confirm this, I would really appreciate it. How long do settled defaults stay on the credit file for?

exil

Do you really want to take on another enormous debt, which is what a mortgage is after all?

gazfocus

exil wrote: »

Do you really want to take on another enormous debt, which is what a mortgage is after all?

Well the defaults that I have only add up to about £3200 and as I rent a house at the moment, the mortgage repayments would only be £25-£50 more per month than my current rent is.

It just feels like renting is dead money and we want to move to a rural village by the time we have children and unfortunately not many rental opportunities there.

mbaz

I'min a similar position. Have 3-4 defaults but hoping topartially settle all debys this year and would love to buy ahouse towards the end of the year. It will be cheaper than renting and I want the security of knowing we wont have tomove again for my children.

gazfocus

mbaz wrote: »

I'min a similar position. Have 3-4 defaults but hoping topartially settle all debys this year and would love to buy ahouse towards the end of the year. It will be cheaper than renting and I want the security of knowing we wont have tomove again for my children.

Thanks for your input. Have you been looking at possible mortgages or have you not got that far? Could you share any providers that offer mortgages to customers with defaults if you know of any?

Thanks again

exil

gazfocus wrote: »

Well the defaults that I have only add up to about £3200 and as I rent a house at the moment, the mortgage repayments would only be £25-£50 more per month than my current rent is.

It just feels like renting is dead money and we want to move to a rural village by the time we have children and unfortunately not many rental opportunities there.

Just thought I'd better ask. Remember interest rates now are low in historic terms n (my mortgage once went up to 15% in the early 90s) so you can't count on payments remaining as they are - though of course rent will go up over time as well.

gazfocus

exil wrote: »

Just thought I'd better ask. Remember interest rates now are low in historic terms n (my mortgage once went up to 15% in the early 90s) so you can't count on payments remaining as they are - though of course rent will go up over time as well.

Thanks, yeah I do know where you're coming from and I don't really fully understand mortgages and how the interest rates affect monthly payments but that's all stuff I'll learn before proceeding.