FTB mortgage with a default

KittiKat

I’m a first time poster but have lurked for ages and, although I’ve learned tons from all of your responses to other questions just like this, I am still trying to get my head around things – so here goes!

My boyfriend and I are hoping to buy a home in 6-12 months time. We will both be first time buyers and are currently eyeing up properties on Rightmove at around £200k (would be somewhere we could see ourselves staying for a few years). We’re both in permanent jobs with a joint income of £60k – this is likely to increase a little over the next year. We’re living like hermits to save up our deposit and should have a £40k (20%) deposit + a bit extra for stamp duty, fees etc. in 6 months, obviously more if we wait a bit longer.

As you can guess from the title of my post, the problem is that I took my eye off the ball a couple of years ago and my otherwise good credit record now shows a single default for £96, issued by a mail order company in April 2009, settled in June 2009. My boyfriend’s record is no problem, he doesn’t have lots of credit showing but what he does have has a perfect payment history.

Other than that, we’re both on the electoral roll, we have no outstanding debt but both have credit cards we pay off in full each month. We both have agreed overdraft facilities that we dip in and out of – will get stricter about that - usual mobile phone contracts etc. all fine. But I haven’t applied for any new credit since the default

Anyway, I know from reading previous advice that time is the only real healer in these circumstances but we really are sure that we want to buy sooner rather than later and would really welcome some advice on how we can put ourselves in the best possible position we can to get a mortgage. Do you think we are being realistic and is there anything else we could be doing?

Dave_Ham

You are already doing many of the right things, one I would add would be to check both of your Experian & Equifax credit reports. This will be crucial to your success.

At 80% and given the information provided, I would be extremely confident of a decent solution although this may be determined by how good your broker is as I think it will be unlikely that you will find your solution on the highstreet - aside from where you core bank account is and depending upon what bank that is with...

Good luck

KittiKat

Thanks Dave for your advice, will check out our experian and equifax records.

I know that people often recommend maintaining a CC to demonstrate your ability to pay after a default, does it matter that I am doing this with a card that I opened pre-default or would it make a difference applying for a new credit building card?

Our current accounts are with HSBC and Santander and I've heard they are picky so any recommendations for brokers in the Manchester area would be gratefully received!

Dave_Ham

Hi - the actual credit card is irrelevant, it is the credit line which is important..

Those 2 banks are horrible at the moment and will not like the default..

ACG on here is in the Manchester area I think, aside from that try and get a recommendation as it will make a difference in your case the calibre of broker that you see.

Good luck