Mortgages with defaults - PLEASE HELP!

on-the-up_5

Hello Everyone,

Thanks for reading this. I currently have a joint amount of debt with my DH. We are fighting hard to get rid of this but have defaulted at the end of last year on 5 accounts! :eek:

I'm now really worried about how this is going to effect me getting a mortgage in the future. We currently have a small 2 bed house but when our debt is gone we want to have another baby and this house jsut is not big emough.

I guess what I'm asking is what are the chances of us getting a mortgage with such bad credit history now.

Just as a back story, I defaulted when I was given terrible advise by Churchwood Finance. They told me that I should stop paying my creditors and they would take the payments over but I would miss one month. From month 2 of my DMP I have made token payments but I still got defaults. I am so ashamed and in such a mess. I can't sleep and am suffering from IBS which I think is due to all the stress and worry.

I am trying to be a better person and get this sorted but I need to hear one way or another if I haev messed up for myself and my family.

Crying:(:(:(

Please help me.

Thanks in advance.

VIGILANT22

Don't be so hard on yourself!....Yes your credit file is going to be affected and lenders take a very dim view of this at the moment. However I have no idea as to what is going to happen in the future as we have more people with affected credit history than we ever have had. We either need new lenders coming into the market or a certain relaxation of criteria. However we cannot go back to how sub prime used to be.

Your post suggests your in a Debt Management Plan...you really have to be concentrating on reducing debts instead of expanding your family. If you're struggling at the moment how are you going to afford an addition. Maybe your debt problem was unavoidable ...however increasing family at a times like this is just irresponsible when you're also suffering from stress........

Go across to some of the other boards where many good suggestions are given towards managing debt and seeing light at the end of the tunnel..oh and good luck....no storks!

Thrugelmir

Battle on and tackle your debts. It will take time to rebuild your credit history but you'll get there in the end. There are plenty of good people on MSE who will give support and opinion. Facing up to the issues and admiting that you've got them is something to feel proud of.

Before rushing into expanding your family, pay down your mortgage and save some money. There are tax rises in the pipeline so don't over commit yourself too quickly.

on-the-up_5

Thanks for your replies. I feel a bit better but I wish I had found this site before I mindlessly entered the DMP with Churchwood. Had I known what I know now I would have gone about this in a whole different way.

I will get out of this situation, I will pay off all my debt (minus the mortgage) in the next 12 months and I will cope until the defaults fall off!

Knowing there is support here is a life saver. Thanks MSE.:beer:

VIGILANT22

Many many people are in the same situation as you who are from all walks of life. What is important is accepting it and dealing with it....and remember it's not the right time for the storks.....:)

pathe

ChHurchwood have just approched me to take out a debt managment plan with them, and they have told me to stop paying my debtors and to join a completely new bank - i'm reluctant to do this based on what I have read can anyone offer any advice on Churchwood or their services offered?

VIGILANT22

pathe wrote: »

ChHurchwood have just approched me to take out a debt managment plan with them, and they have told me to stop paying my debtors and to join a completely new bank - i'm reluctant to do this based on what I have read can anyone offer any advice on Churchwood or their services offered?

http://forums.moneysavingexpert.com/showthread.html?t=571090

Blakey1982

1 Million percent dont listen to the DMP agencies.....i was with Gregory Pennington 3 years ago for about 12 month. It took 8 months for the creditors to stop chasin me and i ended up with a Default after i had completely repaid the debt.

Paid £7000 in February to Gregory Pennington and then go issued with a default in April as GP were still negotiating a settlement........extremely disappointing and frustrating.

I fought the default with the Financial Ombudsman etc trying all angles but no success.....was worth a shot.

I too want to look into getting a mortgage but am worried that the default from April 07 will affect me.