First time buyer with bad credit

Jenny0327

Hi Everyone,

I am looking for a bit of advice please? Or if anybody has been in a similare situation.

Me and my boyfriend are wanting to buy our first house. He has a good credit history no missed payments.
But my credit history is not so good. I have 3 defaults (2 in 2007 and 1 in 2008) Do I have any chance of getting a mortgage?

I was going to get a credit card and pay it off in full each month but I cannot even get one with my history.

Any feedback is much appreciated!

x

powerwin

What will your relative contribution to the mortgage be? i.e. what share of the mortgage will you be paying?

Rgds

Jenny0327

My salary is £16.5k and my boyfriends is £19k
We are looking for a 80-85% mortgage ideally

is this what you meant?

powerwin

Yes, I was just wondering what the relative contributions would be.

How serious are the defaults you refer to?

I am not a professional ...

Rgds

Jenny0327

2008 £4000 eeek settled in 2010
2007 £370 Settled 2007
2007 £200 Settled 2008

when I see them like that I have no hope

catieeb06

Hi Jenny,

Don't fret. What you might need to do however is come with a 20-25% deposit rather than 15-20%.

Is there any chance that can be arranged?

Jenny0327

Really? So the bigger the deposit we get together the better the chance? I mean if I we have to save more or ask our parents for a bit of help then thats what we have to do.
I worry that my awful credit history will spoil our chances of getting a house together

Would you suggest us going to a broker when we get a good deposit behind us?

powerwin

You can ask mortgage lenders to give you a Mortgage Agreement in Principle. You provide the info, including about your credit history, but tell them not to run a credit check. They give you a non-binding indication of whether they would loan to you. This way, you can get mortgage quotes from as many lenders as you like. I would try some of the direct providers for the best deals ... First Direct, Yorkshire Building Society etc.

This is not professional advice ...

Rgds

Jenny0327

Thanks, I will keep this in mind when we come to looking around for a mortgage.
Really appreciate everyones help!

meds12_2

Why not try for a CapitalOne credit card? Their interest rates are exhorbitant, but if you only put a small amount on each month and pay it off straight away you can improve your credit rating somewhat.

We did that for my partner and we got a mortgage 2009 / 85%

(I'm not a financial advisor etc etc - do we have to write this!?)

Jenny0327

I have tried to get a capital one cc but no joy. I have a default with these - maybe thats why
My own fault just want to try and repair my history but can't as I can't get credit. The only thing looking good on my credit report is my monthly mobile phone contract and my current account (not got overdraft)

Thanks for the advice though!