Sub prime Mortgages??

chiquito

Hey folks,

Any advice would be really appreciated. My situation in sort ran into some very bad luck last year and now have £6k over 2 credit cards & 2 defaults.

I am paying these off and am on target to have them cleared by Dec.

I have 10k for a house deposit, is there anyone that will give me a mortgage or would be likely too in the future?

I went to a main stream mortgage advisor with no joy and am now feeling very despondent. I have worked very hard to get myself back on my feet and I would like to think owning my own home is going to be at the end of all this.

I earn £29k, should be debt free by Dec though with 2 defaults and a 10 k deposit am I likely to ever get a mortgage??

Anyone had similar experiences recently?

I pay £45o in rent and so want my own place.

Any advice greatly received.

Thanks

Thrugelmir

Use the deposit monies to clear the credit cards now. Will accelerate the improvement in your credit rating.

chiquito

I can't unfortunately they were given to me on the condition that I use it as a deposit and out of respect that is what I will use it for. I will have all my debt cleared by Dec I am just wondering am I likely to get a mortgage next year and is there anything else that I should be doing to help myself

Liked the quote

GMS

When were the defaults and for how much?

How much are you looking to borrow?

chiquito

The defaults are for 7,000 together over two credit cards. I got them last year due to a run of very bad luck.

I would like to know if I am ever likely to be able to get a mortgage before the defaults disappear off my account.

I was hoping to secure a mortgage after christmas when I am debt free.

I have a 10k deposit and am looking for a mortgage of max 90k

??

GMS

The defaults will not stop you getting a mortgage for ever but will likely exclude high street lenders for a while, especially at 90% LTV.

Once the defaults are over 2 years old there could be a lender at 90%.

Best thing to do is save as much as possible for a deposit.

chiquito

Thanks at last, a sensible answer.

I will not be able to do anything until next year anyway so at least I will be debt free for the new year and able to save.

misstasty

Hi...similar position to chiquito...
Husband has 2 defaults from 2006 on his file, I am trying to deal with DCA's at the mo to get them removed as they do not seem to be able to come up with the correct paperwork. He also has a CCJ from 2006 but this was simply for a sum of 99 pounds and it was paid as soon as we realised about it (he was away in the sandy place and his mail had gone to him about a catalogue that we thought had been paid off fully, due to the time scale of BFPO post he got the bloomin CCJ! Anyway, how likely is he to be able to get a mortgage for next year???? We need to secure a property as he leaves the forces in April. At the moment I'm looking at properties below 140,000 and we could get a deposit of around 10,000. Obviously when he leaves the forces the deposit can be around 20,000 but we do need somewhere to live before he leaves as we will have to leave the quarter we are currently renting. Many many thanks x

GMS

With a 10% deposit as a minimum there is a chance of a 90% mortgage assuming no bad credit in last 2 years.

Does he have a job lined up for when he leaves the forces?

Justtryingtoworkitout

Hi Chiquito

A default is really unfortunate in my experience but no impossible. My OH has one for just under £600 which dates back to 2007 - we did manage to secure a mortgage through a broker (who worked very hard for us) in 2008 - it is with GE Money - BUT on a VERY high and fixed rate. Unfortunately these defaults stick around for 6 years and it would seem that even with 'circumstances' it is very difficult, if not impossible to get them removed. In this market do you need to buy - prices may still fall and you could try to save as much as possible to add to your deposit - the further away from the default date you are the better your chances will be. Good luck.

misstasty

GMS wrote: »

With a 10% deposit as a minimum there is a chance of a 90% mortgage assuming no bad credit in last 2 years.

Does he have a job lined up for when he leaves the forces?

Hi no at the mo he doesn't because he has to do lots of re settlement training, but he is adament that he will have one for when he leaves, its just crazy as he can't apply for anything just yet, so we are a bit stuck