Moving home

mewanthouse

I am currently in the middle of selling my property I brought with my friend 5 years ago, and looking to buy some where else.

I recently spoke to a morgage adviser and gave my credit report, I have two defaults one from mobile phone company for £522 but will be settled this month on full and final just waiting for their letter and the other is from a credit card company for £376 again will be settled by the end of this month on full and final.

Other than that have no other debts, I am looking for a morgage on £170,000, currently earn 44,000 a year and want to put a 10 to 15% deposit.

But I have been told that I will only be accepted with a 25% deposit, but I have checked the post office and they accept one ccj up to £250 and 2 missed payments and 90% on there terms.

Just wondered if someone can give me some advice, on what to do and who to go to???

badmoon

Sorry, just to clarify. Have either of the defaults been settled/satisfied as yet? And if so, when were they from and when settled?

If neither of them are, it's going to be a struggle I would think though I guess you've nothing to lose by trying, sounds like your mortgage advisor will have considered this though as two defaults are completely different from their criteria.

From reading on here, if you've no issues with your credit file, you usually have to supply a 10% to 15% deposite, any issues at all and the deposit requirement is much higher as will be the rate you'd be charged also.

I'm no expert though so deffo have a chat with your mortgage advisor and if you want a second opinion, go with an advisor who specialises in the sub prime market.

All the best.

mewanthouse

Thanks for answering so quickly, they are not settle as yet. I had one when I brought my current house, but both will be settle by the end of August this year. I never thought 2 quite small debts would cause me such a problem.

badmoon

Unfortunately they can do, certainly initially and while they're not yet settled and in the early stages afterwards.

I guess if they were to be harsh about it, they could say it's small amounts and if they were defaulted, then it's an even greater risk of you defaulting on a mortgage/any other larger credit. (and I'm not being smug about this or anything, i've been in your situation and waited out the 6 years etc.,)

As I said, i'm really no expert and there could well be options available to you in the sub prime market if you speak to a mortgage advisor, but you won't be able to pick and choose the best deals I would say, certainly not for a while anyway. In the meantime, get saving even more and you could have a heftier deposit and pay less interest rates wise.

Keep us informed.

mewanthouse

Will do, hopefully once they are settled that will help, am trying to get one removed and raise more money.

Its amazing how much the market has changed, even though morgages money is safer investment than bank cards and loans, as they can just take it back off you.