Will I be able to get a mortgage with a £30000 deposit 3 years after I filed for DRO?

danstephens

Situations changed,

I have just finished my year of being in a debt relief order on the 5th March 2011, I plan to get a property in March 2013 worth £100,000

I will have built up a £30,000 deposit by then with a good working history whilst building up my credit the best I can do you think I could get a reasonable deal on a property worth £100,000?

What are my options? What's the ins & outs, pro & cons etc? Would it be worth waiting any longer? How long?

danstephens

Also thinking about waiting a little longer to apply whilst building up my credit anyway I can, as well as maybe saving more of a deposit...

Can anybody give me a guide to where I should aim for this?

Thrugelmir

danstephens wrote: »

I will have built up a £30,000 deposit by then with a good working history whilst building up my credit the best I can do you think I could get a reasonable deal on a property worth £30,000?

You've mistyped the potential property purchase price.

lvm

Hey,

Sorry I can't help as I have no idea about DROs however I'm assuming you would have received defaults on your credit file at some point. I have 5 defaults which are 2 1/2 years old and I won't even be accepted for a credit card (bad credit card or otherwise). My friend however has a default for £39 issued in Nov 09 and she has a 50% chance of being accepted for a credit card.

Personally I'd say you'd be lucky to get a mortgage after 3 years but who knows how strict/unstrict banks will be in 2 years time...

danstephens

Anybody else know what my chances are like in 3 years time to buy a £100,000 flat with a £30,000 deposit?

danstephens

anyone? please help

Thrugelmir

Saving for a deposit to buy a home is worthwhile even if the time frame is more than 3 years away.

Consider saving with a smaller lender, such as a building society where the underwriting is more flexible. The commitment and discipline shown by regular saving could also make a difference.

Annisele

You're asking what lending criteria will be in a couple of years...so we can't answer without our crystal balls.

As Thrugelmir says, saving is worthwhile even if it will take longer than three years. If you can save £30k in two years, then presumably you can save quite a bit more than that in four years.

One thing that's a near certainty about future lending criteria is that the larger your deposit, the better the rates/terms that you'll have access to. You might want to aim for a 25% deposit plus some money for fees (i.e. your £30k for a £100k house) and then see what the position is then - if you get to that point and find you need to save more, then do that.