mortgages and bad credit

pinknfluffy0

My husband and I got ourselves in to 40k of bad debt. We have just finished paying it all off, we didnt go bankrupt or use an IVA. We would now like to buy a home. We have 95k depostit and the house we want is on the market for 160k. We have spoken to HSBC who turned us down. Our income is about 30k a year.

I dont want to keep getting turned down as I know that makes your credit worse, I am unsure of what action to take.

beecher2

Go and see a mortgage advisor who will look at your situation and advise you. Have a look at your credit file first.

pinknfluffy0

How do I look at my credit file?

beecher2

http://www.moneysavingexpert.com/loans/credit-rating-credit-score

Have a look here.

pinknfluffy0

I have done that, all my old stuff is showing as default but satisfied. It says it will take 6 years to come off, is there a way to make this quicker?

Guessing a mortgage is out the question for now

Conrad

You stand a fair chance with a number of lenders actually. ITL are very nice.

pinknfluffy0

really? thats good to know, we have been working so hard to get rid of all the debt will be nice to be fully moving forward.

herbiesjp

You are looking for a £65k mortgage which would mean 60%LTV

Multiples needed are just over 2 times income.

You will be able to find a deal - it just depends on the dates these defaults were all registered.

The high street will not be able to help, but a broker should be able to place with other lenders.

pinknfluffy0

I am seeing an advisor from the estate agents this week have emailed them copies of our credit reports to look at as he said he didnt just want to apply for loads and get us turned down.

herbiesjp

Make sure the adviser is whole of market - as he may not be able to get access to the deals that you would be eligible for.

pinknfluffy0

Sorry to sound stupid what does whole of market mean?