Settled default ftb advice

ake3

Hello, I am trying to get on the housing ladder, but I have a default on a personal loan which I defaulted on (£6100) and settled in the same month of July 2007 due to me being off work after being diagnosed with MS. I have gone to a FA in Nov after I property I liked came on the market. He says he is still struggling to find me a mortgage because of the default (plus I have 4 late payments in the past year on a 2 on a current account where I went OD twice for £20 each time((which they charged me for the priviledge!!)) and 2 on CC,one was late because I was ill after giving birth and another due to me not checking the date the CC bill was due! All my faultI know)I have £14K deposit for property which is just over 20% of the purchase price. I have checked some Lenders lending policies and state "no defaults within 36 and up to so many late paymentsand lending on affordability" which mine is 41mts old, late payments acceptible and I have an income of aound 30k and I am currently renting at £650pcm and a mortgage will save me at least £200pm!! I have never had rent arrears as I pay 2 weeks before my months rent oin advance is due as my proirity is to keep a roof over my head.

Is the market really that bad not to lend?is my credit history that bad too? I dont know whether there are mortgages out there for me or if my FA isnt doing enough. I did go to another FA begining of last year who did credit check and got me a AIP?
sorry for going on but any advice please?
Thanks
TG

FinAdv

Hi,

The market is very tight and it wont be very easy to find mortgage with all the missed payments and the default. Generally, it takes about 6 yrs to clear a default from your credit file.

You have mentioned that another FA got you an AIP. So why not go with him? He might be able to get you the mortage even though AIP doesn't guarantee you a mortgage. But at least hes got your application pre approved from a lender which your FA hasnt been able to arrange. There is no harm in trying as long as you dont too much money in fees and toher expenses.

Best of Luck!!!

ake3

Thanks for the advice. I think I might sit tight and try to build up another 5% plus just found out the house has had a burst pipe in he attic due to the cold weather and has been flooded!! I got a feeling something is telling me hold back!! haha

Thanks again