What are our mortgage chances?

Chocolate_Lake

Hi all,

In 2007 my wife and I were forced to close our business. We sold our house and went into rented.

With job opportunities being few and far between for me I defaulted on two accounts and we took out a DMP with Payplan to keep a grip on things.

I subsequently went self employed in my trade and have had a steady flow of work since. My wife got a full time job with a company and has been there for five years now.

My question is, how likely would it be for us to get back on the housing ladder? We have maintained all of our commitments since 2008, but I still have these two defaults although I dare say I could contest one of them that is with Lloyds TSB and in relation to charges from them that took me into an unarranged overdraft.

We still have the DMP in place with Payplan.

Any advice would be greatly appreciated as it is rather soul destroying paying rent....

Dave_Ham

Many variables to consider, have you managed to save a deposit and what sort of % would that be against the desired purchase price.

When do you envisage repaying the DMP, how much is remaining?

Chocolate_Lake

Dave_Ham wrote: »

Many variables to consider, have you managed to save a deposit and what sort of % would that be against the desired purchase price.

When do you envisage repaying the DMP, how much is remaining?

We can get the deposit from a family member if we are able to get on the ladder, so 'within reason' that's not too much of a problem.

We appreciate that we will not get a high value property but have always developed houses for sale, so are happy to start at the bottom and work our way up again So long as the house has enough practical space for our family

We were hoping to get a mortgage whilst still in the DMP (if possible!) There is about £25K left on the plan.

Dave_Ham

Incredibly unlikely I am afraid. Is the DMP in joint names and do you have access to your Experian, Equifax and Call Credit reports to see how they have reported them.

Just get the stat reports for £2 each and then put in front of an experienced broker.

To set realistic expectations, this will be tough but not necessarily impossible.

What sort of deposit from family is available will also make a difference...

Chocolate_Lake

Dave_Ham wrote: »

Incredibly unlikely I am afraid. Is the DMP in joint names and do you have access to your Experian, Equifax and Call Credit reports to see how they have reported them.

Just get the stat reports for £2 each and then put in front of an experienced broker.

To set realistic expectations, this will be tough but not necessarily impossible.

What sort of deposit from family is available will also make a difference...

I subscribe to Equifax and my score is 378(Fair) but I understand that counts for nothing.

The DMP does not show on my Equifax report, but the defaults obviously do. I am going to try and get Lloyds TSB to remove their's as it was down to them allowing the account to go overdrawn through their own charges....:o

Dave_Ham

It is worth pursuing Llloyds if you feel you have been wronged, but it is unlikely the difference between 1 and 2 defaults will make a huge material difference to the chances of achieving a mortgage.

What exact dates were the defaults registered and are they joint or single?

Chocolate_Lake

Dave_Ham wrote: »

It is worth pursuing Llloyds if you feel you have been wronged, but it is unlikely the difference between 1 and 2 defaults will make a huge material difference to the chances of achieving a mortgage.

What exact dates were the defaults registered and are they joint or single?

30 January 2009 and 24 February 2010.

When I have looked, the 2009 is from Capquest for a Capital One credit card with a balance of £181. Do you think I could do a deal with them to remove it if I pay the outstanding amount?

Both are in my name only (single)

The February one is the Lloyds default:(

AshleighKatie

Me and my partner both earn over £20,000 each and we don't stand a chance. We have the deposit but my partner is self employed but has been for only for 2 years. They say they will consider it after 3

Dave_Ham

Ok, so do challenge the Lloyds one as could be important in time to come given the age difference.

I thought these were about 5 years ago though, being mindful they come off the report after 6 years from default date.

What about just applying in your Wifes name, you said she was/is employed?

Dave_Ham

AshleighKatie wrote: »

Me and my partner both earn over £20,000 each and we don't stand a chance. We have the deposit but my partner is self employed but has been for only for 2 years. They say they will consider it after 3

You may want to start your own thread, as from the limited information provided I would suggest you are able to get a mortgage now as some lenders do not require 3 years..

Go to main thread list and select start new thread..

Chocolate_Lake

Dave_Ham wrote: »

Ok, so do challenge the Lloyds one as could be important in time to come given the age difference.

I thought these were about 5 years ago though, being mindful they come off the report after 6 years from default date.

What about just applying in your Wifes name, you said she was/is employed?

OK, so lets say we apply in her name. What sort of property value do you think we could we look at based on a 34K salary?

Thanks very much Dave