mortgage for bad credit, even though all paid off now

serrynbaudinette

Like a lot of people in the last few years I had some financial difficulty and defaulted on a credit card. I've learned my lesson and am about to pay this off completely, by early next year. The default happened in 2009. I have no other significant debts but I do still have a bad credit rating and will do for a few years.

I am looking to get a first time mortgage and I have a decent deposit - 100,000. I want to find out what my options are before I begin to deal with agents etc. Is there a way to find out a figure of what I can borrow and be able to pay back without committing to a property or paying out for costly advice from a mortgage adviser?

Do I need specialist advice and do I have any chance at all of a mortgage?

Many thanks

GMS

If the default is over 2 years old then there are lenders who will consider it. How much was it for?

Is the 1 default your only issue?
How much are you looking to borrow?
What is your salary?

Do not apply at random to lenders as too many searches will hurt your rating further. It is important to apply to the correct lenders.

Have a chat with a broker. Most will do an assessment for you for no fee to see if there is a way forward.

serrynbaudinette

hi gms thanks for your quick response. The one default is the only issue - to be completely paid Feb 2012. Default September 2009 for around 6K. I've worked really hard to get this paid off.

My salary is 40K and I want to find out how much I can borrow before I look at areas as this will obviously be a big factor.

How would I find a relevant broker??

GMS

Best way to find a broker is recommendation from friends and family. If that is not possible try google, yell etc or have a look through some on this site.

Obtain copies of your credit files from Experian, Equifax and Call Credit. Pay for the £2 statutory reports rather than the 30 day free trial which can eb difficult to cancel.

superbabe612

I used London & Country Mortgage Brokers which I found on this site. It's a fee-free whole of market broker and despite my former bankruptcy and my partner's lack of income, we're now homeowners, largely thanks to L&C IMHO.
And no, I don't have any vested interest in the company, I am just a completely satisfied customer. Ask for Toby, he worked his *** off for us! And even got us a decent conveyancer who turned our purchase around in 5 weeks!