Young Home Owner with Bad Credit! Second Mortgage!

willLeeds

Hi Guys,

I was lucky enough to save enough cash for a deposit and buy a property by the age of 19/20 (Im now 24)

Unfortunately not long after i ran into slight finical trouble and stupidly hid my head in the sand, i ran into default with a current account and credit card.

I did how ever always pay my mortgage on time

Im now fully back on my feet (Thank god) and doing everything i can to improve my credit, i have a small credit card which a spend on every month and pay off fully. I also have a small loan which ive never missed a payment on, and no over draft.

Im quite ambitious and would love to buy a second property to rent out. When would be an appropriate amount of time to wait before i wouldnt get laughed out of a bank? Would it be the 6 years it takes for the defaults to leave my credit score?

Any advice, tips or info would be great.

Will

opinions4u

When the nasty bits drop off your file will be the time you get into the highest likelihood of success at the lowest price.

It's possible that you might succeed sooner if you're good payment record is strong.

A buy to let mortgage will normally need a 25% deposit. See a broker, not a bank. And do your research. Buy to let is not always easy money.

ACG

You dont say when the default was, when it was paid off and how much they were. But it sounds like it was a few years ago? You might stand a chance with this.

As O4U says though, its not easy money. I used to have a property i rented out. I had someone in there who locked himself out every other week so i had to go round with keys - he soon stopped when i refused to go round and he had to walk to my house (over a mile) in his pyjamas
Another person drilled a 6 inch hole in the outside wall in order to put a ventilation pipe in the basement for the canabis farm she was growing.

I only had 2 people stay in my house lol. Thankfully neither cost me a lot of money but just something to be wary of.