In Debt and need a mortgage help please

stupid007

Hi Guys

New here so please excuse me if im doing something wrong.

Over a year ago me and my girlfriend started looking for a property and were given a mortgage in principal.

A few months later i became ill and had to have a massive operation and was bed/house bound for over 6 weeks. In this time i applied for a credit card. Between now and then i had run up a bill of £3500.

I also have an overdraft of £1500.

Before the lectures come i now am fully aware of how stupid this was.

This week we have found a house and had an offer accepted.

However we are now applying for mortgages and being turned down. We have a 15% deposit saved up and a relative has offered to lend me the money to clear my debts.

However obviosuly with an offer accepted on a property time is of importance. How quickly can i turn my credit history around and now be accepted for a mortgage??

My girlfriend has a perfect credit history. I have a poor credit history mainly due to the amount of credit i have and a single default on one account.

I am in the process of having this default removed due to the amount and cirumstances.

I need advice on what to do? I know i have been extremely stupid but i dont want to ruin my girlfriends and my dream of moving in together and i am starting to panic that i may have totally screwed things up.

ILW

You will probably have to give it a year or two.

CLAPTON

who did you apply to?
what reason did they give?

but you need at least
-to get out of your overdraft for 3-4 months
-get the default removed from your credit rating

how much other debt do you have?

Dave_Ham

Ok, so how bad is bad?

Was it 1 default and when was it registered? Are you confident of getting it removed as typically this is hard work - have they confirmed.

Stop applying, you need professional support and will not be helping anyone with multiple applications.

How much are you trying to borrow and what do you and the OH earn individually...?

The recent default and 15% deposit could be a dealbreaker. If you can satisfy the default if not done and get to 20% deposit, more options are available...

stupid007

I have been in my overdraft for over for around 8 years, since i was a student.

In the last 19 months of this account i have had 2 late payments.

On my credit card and all other borrowing i have been up to date.

On my phone account the default occured at the start of 2009. I was disputing a bill they gave me as i was at the end of the contract, i stupidly thought it was cancelled and stopped using it. I kept in contact with vodafone all the time but as the process of several letters etc took a while i ended up defaulting. I am quite confident due to the amount and circumstances they should remove this.

I have sent emails and a letter this week to try and sort this problem.

That is all thats on my credit report.

We are looking at a house that is £148,000 and have a 15% deposit.

Our combined income is around £32,000.

Dave_Ham

Boy - this is going to be hard work...

There is a vodafone rep who uses this site and seems to get things done. I would search and try and get in contact, as with someone fighting your corner on the inside will speed things up no end.

The affordability issue is unlikely to go away and some lenders will not meet your income multiples, without factoring in any debt either.

You must handle the default before anything else.

Also, worthwhile checking both your Experian and Equifax and checking the default is registered on both, as phone defaults are not always registered as diligently and may give you an option if not..

Good luck

stupid007

I have checked equifax and it is on there. I have also checked noddle and cant see it on there however i cannot access my experian report.

I have just sent an email to the vodafone rep too so hopefully he may be able to help.

Would having a guarantor be beneficial?

Also would a 52 year old be able to get a mortgage with a 25 year old?

Dave_Ham

stupid007 wrote: »

I have checked equifax and it is on there. I have also checked noddle and cant see it on there however i cannot access my experian report.

I have just sent an email to the vodafone rep too so hopefully he may be able to help.

Would having a guarantor be beneficial?

Also would a 52 year old be able to get a mortgage with a 25 year old?

Then I think you need to sort out having the default removed (if you can) before you do anything else.

52 year old would work, depending upon commitments financially and income. A restricted term is likely in this scenario and would expect 17 years to the best mainstream option.

If this is your parent, one solution would be to put partner and parent on mortgage and then you remortgage in 2 years and replace them with you. Few variables to consider and implications but can be done, if brokered appropriately.

stupid007

Thanks for all your help so far David BTW.

The only problem with a 17 year mortgage option with the girlfriends parent is the repayments would be higher and we wouldnt be able to get any of the first time buyer offers.

Say i cleared my debts today and had the default removed today, how likely would it be that i was accepted on a mortgage?

Dave_Ham

Subject to anything in the background we do not know, very, very likely you would get one.

Your challenge is that even if they agree to remove, it takes longer than this to actually reflect in your credit file.

Appreciate the cost issue, although it may be your only quick solution. There are not that many ftb deals, that could not be bettered by a better rate in any case at 85% so do not worry about this...

CLAPTON

how much do you owe in total?