Bad credit history - eligible for mortgage?

zoho86

Hi there,

I am 25 years old and I earn 20k per annum working full time. I have been renting a flat privately for a year and lived with parents before that.

I belive that my landlord wants to sell my flat as I have had a request from the letting agency to allow them access to carry out a valuation.

I am interested in the possibility of buying the flat as I know it will only be valued at around £70,000.

My question is, would I be an eligible candidate for a mortgage of this size? I have no deposit of my own, but lets assume that I can raise 10% as a loan from my parent. I understand my earnings will be sufficient to raise a mortgage on £60k, but I have a pretty lousy credit history (unpaid overdraft and 1 unpaid credit card which altogether totals around £8,000). I don't think there are any CCJs or similar against my name though.

Any advice is appreciated, I would just like to know whether it is worth my time pursuing the possibility of a mortgage.

Could someone also let me know what kind of rate I might be offered and what the monthly repayments may work out at? I don't really know much about mortgages at all...!

Thank you!!

Dave_Ham

Possibly, but would require more detail on the overdraft and credit card.

When you say unpaid, do you mean you have a balance on them?

What is the conduct like and you would be wise to go onto experian and equifax and get your credit reports so you can see for yourself and/or share with us so we can give you a likely chance of success.

Paul_01

Take up the offer of the free trials for both credit expert (which is Experian) and Equifax. This will enable you to see exactly what a prospective lender will see when you apply for the mortgage.

Report back with your findings and we can help further.

Paul.

zoho86

Thank you both for your replies.

I have tried to get my credit files but it looks like I have already signed up for the trials and they want to charge me the monthly amount for immediate access I am waiting for my login with Noddle to be sorted and then I can give you some more information on what my report shows.

Dave_Ham

Just pay the £2 for the statutory files and this will tell you what you/we need to know..

zoho86

I have written off to Experian and Equifax for the statutory files (was having massive problems with the online service - they couldn't verify me and the customer service telephone line was useless...) So this will take a few days to come back - I will update then. Thank you again.

Hudge

Hi there,

I had a quick scan of recent topics and this thread seems to be a good place to ask my question.

I too am concerned about obtaining a mortgage with credit problems in the past. I have a satisfied default for about £400 back in 2007 (no other problems other than this). Since then I have no missed payments, and today have no outstanding credit balances. Any potential mortgage application would be made with a 10%/20% deposit.

I have read that obtaining a mortgage with a default may be difficult. Does anyone have any experience of this? From reading a few threads I see there's a few mortgage broker types about, so any advice would be greatly appreciated!



Thanks

Hudge

Dave_Ham

Hi Hudge,

Start yourself a new thread so we do not get confused. Give as much insight into your position and what you are hoping to do and we will give you as much information as we can...

Start with Experian and Equifax reports as you will have a true assessment of your position, as the bank see it!

Cheers