Mortgage approval

gil7006

Hi,

I am currently have around £20000 debt and numerous missed payments and defaults, however I am selling my house and will clear my debts and still have at least £60000 as a deposit. Will I struggle to get another mortgage?

maninthestreet

Yes, most definitely.

harvey115

You need to speak to a good broker specialising in bad credit history applications. The older the defauls and missed payments the better and all defaults must be satisfied to be considered for a mortgage.

Hope this helps.

kingstreet

What will that £60k equate to in deposit percentage and loan to value terms?

If the borrowing will be less than 70% you'll have a better chance. The higher the loan to value, the worse your chances.

Thrugelmir

gil7006 wrote: »

Hi,

I am currently have around £20000 debt and numerous missed payments and defaults, however I am selling my house and will clear my debts and still have at least £60000 as a deposit. Will I struggle to get another mortgage?

A period of time in which you demonstrate an ability your personal finances in a responsible manner may be advisable.

The fact that you've cleared your debts should be viewed only as a very first step on the road.

Dave_Ham

All about what you are looking to buy for,...

It will also depend what date the defaults were registered, although think 20% deposit and you may be ok.

Work out your numbers and get your Experian, Equifax and Call Credit reports...

Essex2201_2

I think you should go to a recommended mortgage broker. Maybe you could rent for a short period (6 months- a year) to try and improve your credit rating..?

Joshua_Wilson

I have encountered a similar situation and what I did is I spoke to a good broker specializing in bad credit history applications. He was the one who help me work things out to get my mortgage approved...