Mortgage advice please?

MissT1

Hello,

I have a poor credit rating due to getting very behind on payments and also a CCJ. I have now paid off all of my debts.

I am now looking to buy my first home. I have about a 40% deposit.

I was wondering if I would be better off waiting a few years to rebuild my credit rating and get a better mortgage deal? And what should I do with the money I have while I wait?

Or should I try and obtain a mortgage? I am worried that applications will just lower my rating even more.

I am also looking at a mortgage broker. Are there any recommendations?

Any advice would be very welcome.

Dave_Ham

Ok, this is my specialist subject...

Firstly, we need to know what historic information is held on your Experian and Equifax files and this needs to be your starting point.

We are looking for any defaults and dates put on and when the CCJ was registered and for how much.

40% deposit means there will be definitely be solutions for you, the difference in a fair rate and a stupidly high rate will be determined by how good your broker is.

Good luck

MissT1

I have a default registered in 2008 and a CCJ registered last year for £1200 (now paid).

This year I had about 4 accounts that I fell behind on payments for 4 months in a row that are now paid. Should I close these accounts?

Dave_Ham

It will make no difference in all honesty if they are opened or closed now.

If you have a 40% deposit, how did you allow yourself to get a CCJ for £1,200 - is there any room to challenge this?

There will be lenders that will lend, but likely to be rates of about 6% for a couple of years...

MissT1

Thanks Dave.

I inherited the money and I'm not really sure what to do with it! :eek:

harvey115

Have you thought about putting the money in a fixed savings account (with good rate) for a couple of years? If getting a new house is not urgent...

marathonic

I'd open a Fixed Rate Savings account for one year at 3.6%:

http://www.moneysavingexpert.com/savings/savings-accounts-best-interest#fixed

And a Regular Savings account for one year (to increase the deposit and provide proof of a savings history):

http://www.moneysavingexpert.com/savings/best-regular-savings-accounts

Then I'd revisit after a year. I'm no expert but I'd assume that most of what you would pay in rent would be ate up by the increased rate you'd be offered on a mortgage at present.

Edit: Beat me to it Harvey