Bad Credit Mortgages

Nicolette83

Hi,

I have two defaults on my credit file, one in 2007, one in 2009 which were both paid off in full in 2009. I am wondering whether I have any chance of getting a mortgage and if so, where I should even start looking.
I have no debt at all anymore but only have approx. £4k of savings. Should I just forget the idea of ever having a mortgage and just rent?? I only earn £22k a year and so I probably wouldn't be able to borrow much if anything!!

Any advice would be gratefully received as I'm desperate to have a realistic goal!!

Calfuray

You will have a chance, but do you have a deposit yet?

The bigger deposit the better, it will help you get a better rate and will help to overcome the defaults.

Nicolette83

I only have £4k in savings at the moment so I'm guessing I should probably just get my head down and save as much as possible!!
I've been looking at shared ownership homes which have a 40% purchase price of £66k just as a means of getting on the property ladder but I'm not sure if it's not a realistic goal for me!

happycamel_2

It's possible but you need a bigger deposit because you need money for solicitors and an emergency fund for housing maintenance.

I'd suggest posting an SOA on the DFW board and get some advice about cutting back. See of you can raise your employment income (promotion, further training etc) and save up. In a couple of years time your defaults will drop off and you'll hae a decent deposit and can go for it.

Not possible now doesn't mean not possible ever, you can make this happen but it'll take dedication and a bit of patience.

ACG

You will be able to get a mortgage. The lower rates will probably be unlikely though.

I would be looking at s 15% minimum deposit.

I would also say you could borrow around £80k, possibly a little more or less depending on the lender, your deposit and your circumstances.

So you would be looking at a maximum purchase price of around £95k give or take.

Im not sure if thats possible in your area or not. Im in Manchester, you can get a terraced house or even a semi in some areas around here. In London though i imagine you might be able to get a shed or a garage if your lucky.

Hopefully that spurs you on or atleast helps one way or the other.

Nicolette83

Thanks for the advice!! I'm definitely jut going to keep saving and build up a larger deposit, then go from there!! A year from now, I think I'll be in a much stronger position! Thanks again!!

prin1113ci

Compare the best bad credit mortgage deals available side by side using our poor credit mortgages comparison .

addyboy1982

Although there are products out there for 90% LTV the rates only start to get decent when you borrow 85% LTV which is 15% deposit.

I got my first mortgage 2 years ago with a good, but not squeaky clean history (one default as opposed to your two) - my mortgage advisor said that I would be likely to get 3.5x salary as a maximum, and back then 90% LTV was out of the question.

I borrowed my maximum of £75k, you could get £77k + 15% deposit which would give you a budget of c. £90k.

Good luck!