HELP!! First time buyer £60k deposit but poor credit rating!! Can I get a mortgage??

hollykins28

Hi Everyone!!!

I am hoping someone on here can help me, this is my first post on here, it seems a really great and helpful site and has some great advice from you guys so im really hoping someone can help me!!

Basically im wanting to get on the property ladder, im 28, live with my partner but he is self employed and due to being out of the country for a year recently he cant get a mortgage so its relying on me to get one. We have £60K deposit between which is great, and are looking at a house for abour £160K I earn a basic salary of £23K with bonuses £29K. The problem I have is a couple years ago when I was at Uni I stupidly got myself into some bad debt, I just kept forgetting to pay my credit cards on time and got in a but of mess I now am paying all my debt off and only have like £400 left to pay which I shall pay before I get a mortgage, I was worried so I did a credit report with experian and got a poor score of only 342 im gutted, having paid all debt on time these past 6 months - to a year it would be better. I pay rent and have done for the past 3 years and have never made a late payment, have many bills; Sky, BT etc never missed or made a late payment. My partner has a spotless credit score always has paid his credit cards in full every month, no debt etc.

Can anyone advise me what I can do, as we really want to get on the housing market but feel lost now!!

Cannon_Fodder

Concentrate on clearing anything outstanding for the next few months. Check your credit history for anything that needs fixing.

Keep a tight leash on your finances, using a monthly budget to track incomings and outgoings, so there is no further mistake/oversight.

Re-check your credit history regularly, dealing with any new entries.

Review the progress you have made in 6 months time.

hollykins28

thanks for your response!

are you saying with my past I would not be able to get a mortgage? I am paying the £400 for the final clearance of that debt, and have nothing else to pay. We are moving in with partners parents this month, so dont really want to stay there too long (not ideal living with boyfriends parents at 28!) so was hoping to get some advise as to if it is possible, would a mortgage broker be able to help me?

I thought with me being debt free, and the original debt being so small and having such a large deposit, I may be able to get a mortgage? any advise here is very welcome!

thanks everyone!

DVardysShadow

The credit score is virtually meaningless. What matters is the problems revealed by your credit record - defaults and late payments. As you are 28 can we assume that you have not been a student for at least 5 years? And any defaults and late payments stopped 4 years ago? These all fall off in turn after 6 years, so you may not need to wait too long for your record to come clear. Have you made sure you are on the electoral role?

hollykins28

Hi,

thanks for your reply!

I left university in 2008, I was a mature student. The debt I incurred from that credit card, I struggled paying my first year out of university, not having a job for a while so missed a couple of payments or didnt pay enough. I have now got a good job and paid £150 each month so it is almost cleared now, I plan to pay the rest off in one go at the end of this month. I am the first to admit I was rubbish at managing money and really didnt think about the future, something i massively regret

I have spoken to a few mortgage advisors, and they say I may be able to get will put on it (my partner) he has an immaculate record, pays in full every month, never missed a payment, or I could get my mum to go guarantor. do you know if this would help my chances??

hollykins28

sorry, yes I am on the electroral role and have been for years!

hollykins28

One last thing (sorry!) I have just checked my credit report, it shows on my credit cards, I am listed as satisfactory, not bad or anything, does this help my case?