Reasonable deposit, Iffy Credit history

DiscoBiscuit_2

Hello All,
treat me gently please, I'm a newby!!

I am not normally used to open forum discussions but here goes;

I am in a reasonably well paid job C£40K with a small deposit of £150K. However I have a paid CCJ from June 2010 and a paid Default from Oct 2011 due to company problems. I have now been employed for nearly 2 years and want to get a Mortgage at a reasonable interest rate. Looking to purchase a house at £300 to £325K. Am I being realistic? Where do I begin to look? I did some applications before Christmas and had either, 'get lost' (in nice terms) to 'you're a first time buyer' (live in rented, having sold family home at good price) and 'we don't lend on properties next door to pubs'! Interest rates were in the region of 6.5 to 7%.

Many Thanks for your time.

holly_hobby

How much were the CCJ and default for ?

When you say paid, do you mean satisfied (if so how long after registration of the accounts did you satisfy the debt ?)

Holly

Dave_Ham

Exactly the killer questions from Holly above...

When were the default and CCJ actually registered and for how much?

DiscoBiscuit_2

CCJ for £5300 July 2009 satisfied by Feb 2011. Default £3500 (Bank Account) Oct 2011 settled at £2K with AIC end of 2012.

Thank you for your prompt replies.

holly_hobby

IMHO they are too large and recent in my opinion (esp the default its only just 12 mths old) for the high st, plus the fact that your default will only be recorded as partially settled - whether it was by agreement or not, you did no satisfy the actual debt incurred and defaulted (which I'm guessing was for an OD).

Of course a huge deposit of 150k giving circa a 50% ltv will help as this can make it a mandate decision, but the UW will be looking at a demonstrable change of circs (which appears to be you have gone from SE to employed) and why you didn't settle the whole defaulted amount (was this because a reduced payment was offered by the bank to encourage your settlement OR was this because there had been an error in the original amount recorded ?)

Dave Ham who is a advsere and current adviser will give you a more accurate evaluation of whom may be in the market for you if anyone.

As the LTV is low an adverse broker would of course also be of benefit, whom will be able to bounce this off their lender contacts and BDMs to try and place this given the issues to hand.

Hope this helps

Holly

Dave_Ham

My school of thought is that where there is that sort of equity, there will be a solution.

Could easily mitigate the CCJ, although the default will be harder work. It will be easy at 6%+ range, challenge is trying to get it on more standard rates.

Get your Experian, Equifax and Call Credit reports and hunt down a decent broker. Ensure you only pay a fee on a successful placement on fair terms.

holly_hobby

Thanks Dave

H x

Thrugelmir

DiscoBiscuit wrote: »

Default £3500 (Bank Account) Oct 2011 settled at £2K with AIC end of 2012.

Why not full settlement? Will be a huge negative on your credit report.