Right to Buy Mortgage with Defaults on my credit file. is it possible?

modsareus

I have the right to buy my council flat in Scotland . Because i have lived there for over 15 yrs i am entitled to a 70% discount..
i have just taken an £8500 loan to clear some rent an council tax to allow me to buy my property.
At the start of the month BT added 2 defaults to my file...one is for an old account defaulted on Feb 2010. the other Defaulted on Feb 2012.i am fighting BT for this as i was working away from home an can prove it
I have settled both accounts £115 & £76 instantly.
The defaults so far are only showing on Equifax but not yet showing on Experian..
What are my chances of getting a mortgage? ..Has anyone been in the same situation?.
i think i will be looking for around 20-25k not yet had it valued by the council.
Would it be possible to ask for more to consolidate the 8,5K loan?
Would it be possible to just get the mortgage?
Any advice, help or ideas would be gratefully appreciated
i live alone and i also earn around 28k a year.
i didnt think it would be hard.....but now these Defaults will certainly not make it so easy.:(
P.s ..i called London Town and Country as i heard they were good.
He just took some details but it didnt sound promising.

Dave_Ham

Keep fighting BT, for the amounts involved they may cave in.

You will not be allowed to borrow more to debt consolidate for sure.

This should be achievable, so long as L&C do not kill your credit file punting in the dark on credit scores success - hence the lack of conviction on where to place.

This is borderline, much will be dependent upon if and when Experian update their scores....

All the best

dktreesea

Who do you bank with? Why not just approach whichever bank you bank with? If they don't agree them move your banking elsewhere, but go around and see what they can offer you, so work out everything you want first, e.g. a % credit card, a mortgage at a decent interest rate, fee free current account banking, an overdraft on the current account, etc. £28k a year is a decent salary. That should be worth something. It's about time we all stopped begging the banks to help us and started marketing ourselves as a decent proposition for them and see which one comes up with the best offer for us.

kingstreet

You can't borrow more than the discounted purchase price for anything other than home improvements. You're effectively borrowing into the council's discount and that is tightly regulated.

As to getting enough to buy the property, that will depend on your overall credit score. The defaults won't help. If they were both 2010 at those amounts, you'd have a chance, but with one from 2012, even satisfied it's going to be difficult.

You need to get hold of all three of your statutory credit files;-

Equifax

https://www.econsumer.equifax.co.uk/consumer/uk/gb_consumerletter.ehtml

Experian

https://secure.wiseconsumer.uk.experian.com/wiseconsumer/secure_index.html?data=00

CallCredit

https://www.callcredit.co.uk/stat-report-online/index.php?action=register_display&tpl=regPurchase

Which you should take along to a meeting with a good independent or whole market mortgage broker. Ask friends and relatives for a recommendation. Failing that, use https://www.unbiased.co.uk remembering to switch off "website/email only" option so you get a full list, not just the paid-for adverts.

The £2 statutory paper files will be fine. Avoid online schemes you have to pay for which give you your inside-leg measurement and call it a "credit score" as this is different to the lender's, the one which actually matters to you...

droiderm

It doesn't sound great that you had to take a 8500 loan to clear rent and council tax?