How long before I can get a better mortgage?

trying2bbrave

Hi

I've posted on the debt-free forum, but thought I'd post here too.

I have got myself into debt and am selling my property to clear them. I have a CCJ, which will be clear on completion, and other defaults - I am with Payplan. I have cleared 2 debts over the last 2 months and now just have the CCJ and Egg CC to clear. My CCJ will clear from my credit report in April 2012, as will all of the defaults, bar 1 in Jan 2013. I will walk away with 18K clear from my sale.

My mortgage statement shows 3 late payments, last one March 2010 - however my credit file does not show arrears, as the late payments were agreed by the mortgage company and paid within 7 days of the due date.

Kensington gave me an agreement in principle, but have declined me (due to the statement) and Platform can't help due to the statement and my CCJ being over £500.

The only option to buy now is an 8% Variable, 50% deposit with MBS (with my families help). Scary high interest - but I have no-one to blame but myself!

How long before I would be accepted for a better mortgage, with the debt behind me?

I have a few options;

Live with my parents for a while to save - but I won't be able to show I can pay my way -mortgage/rent statements.

Rent - but the prices are more than getting the MBS mortgage, even if rates go up!

Get the mortgage with MBS.

What would you suggest is the best course of action?

Thanks in advance

Thrugelmir

Live with my parents for a while to save

Prove you can manage your personal finances by saving a larger deposit.

With minimal outgoings save a monthly amount at least equal to if not greater than the amount you would repay on your mortgage.

Maybe worth saving with a smaller lender such as a regional building society where the combination of regualar saving and personalised application process will count more in your favour.

trying2bbrave

Thanks.

Any ideas how long it would be accepted for a mortgage, other than adverse?

GMS

MBS is variable so may well go up. Also has an Early Repayment Charge of 6% I believe.

Have you asked your current lender about a new property? You say you are selling and looking for a new mortgage so try to port the current one. They may well say no due to adverse credit and missed payments.

It is difficult to say without knowing your precise circumstances but you may have options. A 'Whole of Market' broker should be your destination, after your current lender.

LilacPixie

Will your file be clear in Jan 2013 then?

Surely if you live with parents you will be able to clear debt and save a lot so come 2013 with a nice and clean file you can approach a highstreet lender with evidence you have saved £££ month in month out for over 2 years.

trying2bbrave

Thanks for your comments

I've tried porting - but my mortgage is with Mortgage Express, I am out of my fixed rate and they won't port due to my credit problems.

I was told there was no ERF with MBS.

i've tried a whole of mortgage broker and MBS is the only one who will help.

My credit file will be clear in 2013, but the majority will be clear in April 2012.

I can't stay with my parents for that long, not for 2 years at any rate - I think we'd all go mad! I've been living alone for the past 10 years, so 1 year will be hard enough!!! Don't get me wrong, I'm very grateful to them, but there going to enjoy it as much as me.....:)

Appreciate your help.

GMS

What exactly are your credit blips and when?
Income?

How much would you be looking to borrow?

trying2bbrave

Credit blips - think they are explosions:o

I have a CCJ from 2006 for £9000

I have been with Payplan since 2006, dealing with 3 other creditors, all for various amounts. 2 of which have been cleared in the last few months.

So now I have the CCJ and credit card (for £5000). All of which will be clear once the sale has completed.

No other debts will be outstanding:T

Income is 30,000 basic - a permanent job, but I work on a casual basis in the summer (for the last 5 years) and earn extra - but this is not guaranteed.

My family can lend me the shortfall, so I could do the 50%, however initially I was looking for £120000. I had an offer accepted on a £170,000 property - as Kensington gave me an offer in principle.

Thanks