Credit Issues and First Time Buyer

nashetho

Hi All
I am after some advice...

My wife and I wish to buy a house next year we have around a £48000 deposit and our income is around £36000 for me and £25000 for her. We are looking at a house price of about £150000 tops

My problem is that I have a default on my credit Reference for £730 which is satisfied and will disappear off my record in Oct 2008.

What do we do? will we get a mortgage and if so will the rate be terrible? in 2008 I will have a good record again?

Any info or advice would be good before we start seriously looking in sept/oct next year.

Cheers Nash

AndrewSmith

If this is the only 'blemish' on your credit file then I should not think it will cause you too many problems.

I doubt very much that you would be looking at a vastly loaded interest rate, if at all.

Andy

nashetho

the only other thing is the odd late payment on my credit cards, status 1 occaionally

AndrewSmith

Without seeing it it is hard to say.

It depends on the number of and the frequency of the late payments, and when they occurred.

If they were all recent then it may well affect your rate etc, however is they are past then they may not. That said however, status 1 does not normally cause too much of a headache.

nashetho

thanks for the info, would that mean I would still be looking at sub prime lenders or is there a chance that normal lenders may be interested?

I realise it is difficult to comment without all the details!
But your advice is much appreciated.

Cheers
Nash

AndrewSmith

You are right, it is impossible to say really.

If it is minor stuff then you may well find that some highstreet lenders will accept you, however, it is not the end of the world if you do have to go to a specialist lender. A few status 1 payments and a minor default would usually be classed as near prime anyway.

Andy

herbiesjp

Agree with Ansy - difficult to say

There are some lenders that could "ignore" these blemishes, and I would always try high street lenders/rates first.

DO not start applying all the way down the hight street, as if they do turn you down too many credit searches coudl harm your dredit file.

Have a word with a whole of market mortgage advsier and let them see what they can find for you.

HTH