Worth a try or waste of time?

emtee80

Hi All

Ive got another of the those "Mortgage with a bad credit history" type questions. Would really appreciate any responses.

My situation is:

I have 4 defaults with a total of £22K (DMP after messy divorce!). These are 3 years old and were all satisfied in full in November 2010. I have no current debts and all other credit accounts have a perfect history (thanks DFW board!).

My new wife has a perfect credit history and no debts.

Both full time employed. Our combined income is £71K.

We would like to buy a house for around £200K and currently have a 20% deposit

My question is would it be a complete waste of time to apply for a mortgage until the defaults have dropped off or is it worth seeing a whole of Market broker?

Cheers

StuTheDon

Hi,

Worth a shot with a whole of market broker. In your favour is good deposit and the remaining amount (circa £160k) is just over twice combined income, so should be affordable.

The defaults will be an issue though - you may find the interest rate deals you are offered are higher than expected.

Stu

emtee80

Thanks for the reply Stu. Anybody else got any thoughts?

GMS

It could be possible. Speak to a Whole of Market broker.

There may well be possibilities

emtee80

Great, thanks GMS. Looks like it might be worth a go then.

Conrad

I doubt any lender would do this due to the size of defaults and the DMP.

Poosible lenders for this sort of thing are Kensington and Melton BS, but I suspect you will need a much larger deposit, and in the case of Kensington to wait another 3 years.

Have you thought about putting in parents name as a Buy To Let or something? Nothing illegal in this as long as the intention is to let it. Often landlords cannot let a place due to local demand, but nothing happens as long as payments are kept up. Plenty of landlords end up with empty property and even end up moving back in themselves, again just life and no lender would be remotely bothered as long as payments are maintained, indeed lender reps tell me that the lender is more than happy as they get to charge a higher interest rate and fee on buy to let.

GMS

A Buy to Let with the obvious intention of not letting is fraud.

Do not go down this road.

As long as defaults are registered over 2 years ago and DMP has been maintained then there is a good chance of a mortgage.

Have a chat with a broker. Ignore getting around the rules advice.

emtee80

Thanks Conrad. Ive got no immediate need to move so if I cant get somthing in our names then we'll just stay where we are for now.
Hopefully in 3 years the defaults will be gone wont they so I could apply to anybody?

emtee80

GMS wrote: »

A Buy to Let with the obvious intention of not letting is fraud.

Do not go down this road.

As long as defaults are registered over 2 years ago and DMP has been maintained then there is a good chance of a mortgage.

Have a chat with a broker. Ignore getting around the rules advice.

Cheers GMS. Yes the defaults were registered between 3 and 4 years ago and my DMP finished in Nov last year with no missed payments.