FTB/25% Deposit/Poor Credit Rating

credtit

So as the title says I am currently considering mortgages and getting on to the property ladder. I am currently studying but work full-time and my girlfriend is currently doing a PGCE which she will complete in June. I currently earn about 12k basic with 3-4k a year on overtime and bonus and she will hopefully get a job at 21k when she qualifies.

I have a poor credit history with 4 defaults all dating from 2008/2009 when I was young and stupid and didn't realise the importance of good credit. These total about £1500.

My main question is if we were to go for a mortgage in say a year to 18 months would we be likely to find a good deal?
We are considering buying a cheap flat first of all, something around 45k and would look to have a deposit saved of 25% This should be easily enough saved and is something I've started to take seriously in the last few months.

Thanks for reading everyone and I look forward to any replies.

harvey115

You would definitely need a good broker on your side for this to work. Make sure that all your defaults are satisfied, although they will not be dropping off in an year time. It would be best if you could hold on until the defaults get dropped from your file (takes 6 years from the date of default registering).

Although a good broker may be able to secure a mortgage for you while the defaults are still visible on your file. If they are not satisfied, it will not be possible though.

Hope this helps

credtit

Thanks for your reply.

Would I just be better off saving up a higher deposit until the defaults drop off and seeing I would then hopefully be in a higher paid job as well I could go for a higher mortgage? The main reason for going for a flat at that value was just to get my foot on the ladder but if it is going to be overly difficult it might not be worth it.
The only negative being I would have to rent accommodation during the time I could have been living there.

harvey115

I think it is not worth buying something that you plan to sell in a couple of years as the markets are not as atttractive as they used to be. I would say wait for a little while and buy something you want to stay for 5 to 10 years at least.

Save more and apply after the defaults are dropped off your file. I would suggest that you consult a broker to get professional advice when required.