Getting a Mortgage with bad credit?

brewster79

I stupidly got myself into a bit of financial trouble a while back by getting out a few loans and credit cards to pay for holidays and basically live above my means. Stupid i know but i was living in denial!

Anyway, i ended up with about 10k of debt spead over 9 creditors, it was all getting a bit much so i joined a debt management programme to try to get on top of things. Therefore i defaulted on all my credit agreements. I have now taken myself out of this programme and am well on the way to been completely debt free in the next 18 months.

The bit i need some advice on is this.....me and the wife are looking to move house after we clear the debts and i am fearful that i wont be able to get a mortgage as i defaulted on credit agreements. I have never missed a payment on any of my previous mortgages though so that counts for something doesnt it?? Has anyone been in this situation before?

On a side note.....how long will it take if i get one of those bad credit credit cards to try to rebuild my credit rating to get it to a good level again?

Any advice is greatly appreciated!

VIGILANT22

Any defaults/ccj's etc stay on your credit file for 6yrs......
Quote:I have never missed a payment on any of my previous mortgages though so that counts for something doesnt it??...Means nothing.....
Bad credit cards.....waste of time

brewster79

so those cards dont help your credit rating then? do you know if i can still get a mortgage with defaults on my credit file?

ILW

Hope the holidays were worth it.

VIGILANT22

brewster79 wrote: »

so those cards dont help your credit rating then? do you know if i can still get a mortgage with defaults on my credit file?

Can't say for sure, but very much doubt it......

_Andy_

Impossible to say without knowing how much the defaults were for and what %age deposit you have

brewster79

the biggest one i defaulted on was only £900. The main part of the debt is 5k with my bank (overdraft & credit card rolled into one big loan) and i have never missed a payment with that. The other big one is £1500 with my other bank (again credit card & overdraft) and ive never missed on that one either. The rest are all quite small and im paying them off in big chunks each month.

I guess i just wanted to know how long i was looking at till i can get a decent credit score again! feels like im talking about a prison sentence!

VIGILANT22

well you have learned to your cost sometimes their is a higher price to pay than what it says on the tin.....

brewster79

yeah believe me i have a whole new respect for budgets on money management! every penny of spare cash is paying off debts as ive just started a debt snowball.

just checked my equifax report and its not as bad as i thought....only the 2 defaults (still bad i know but i feel better for knowing its just the 2!). on an account for £500 and on an account for £800. wish id never used a debt management programme now.....

oh well onwards and upwards! Thanks v. much for replying.