Mortgage Chance With Adverse Credit.

Bastion2

Hi,

Was wondering if one of you nice people could offer any advise.
It has gotten to a stage in my life where I am fed up of renting currently privately renting and have paid over 37K in rent over the past 6 years! paid in full and on time each month. (Not on Credit File)

Unfortunately I dont have the best credit. Described as poor according to experian amongst others. I have two defaults from 2009. One for £1300 for Orange and one for £700 from Vodafone. The Vodafone one was settled in 2009 however the Orange one is still outstanding, I have no idea how they got so high! I wrote to Orange two weeks ago to discuss the outstanding debt but have not heard anything back yet. I've also had a few missed payments on credit cards from around 2008/2009, however these were settled around the same period. On a plus note I have also had two loans that were paid in full and on time each month and finished in 2008/2009.

Current credit:- Capital One Credit Card £200 that I make sure is paid off in full each month (although recently)
Three Network Contract:- £18.99 P/M (paid on time each month for last two years)

My question is have I got a chance of a Mortgage, albeit a high interest one? At the moment I have applied to be on the Electoral Roll. I have about £5k saved and I am in the RAF so I could utilise the Long Service Advance Pay (LSAP) loan of 8K which is interest free and to be paid off in the years I have left.

Sorry if this is long winded. Any help will be greatly appreciated.

Thrugelmir

You need to ascertain the position of the Orange debt first, and resolve the issue. As is going to severely impact your credit rating and any possibility of raising a mortgage in the near future. .

ACG

How much were you planning on buying for.

With the LSAP and your deposit, you would have a near 15% deposit on a £100k purchase price, which could make it possible.

If you were looking to purchase for more than that then you may well struggle.

Bastion2

Thanks for the replies. Hopefully Orange will reply by the end of the week.

I earn around 33K a year but with my credit and small deposit I'd hope 100K Mortgage would be achievable.

Dave_Ham

Hi there,

Your salary is fine, it will all be about the deposit.

If you can get to 15% of the purchase price as your deposit, there will be a solution. This will also not be at stupidly high rates, but fair rates.

Given the age of the default and the fact it is to a telecommunications provider, other things being equal settled or not some lenders may disregard this.

Your situation is complicated if you are based at a BFPO address, although the fact your mention Electoral Roll makes me think you may not be...

All the best

Bastion2

No I'm based in the UK.

Thanks a lot Dave, that sounds really positive.

Bastion2

Dave do you think I would have any chance of the Newbuy scheme where you only need 5% deposit, or is that pushing my luck too far?

Dave_Ham

I think Newbuy will be pushing it given there are only a limited amount of lenders on the scheme, for otherwise a prime product...

Couple of new lenders added in the last few months, not sure if they are treating as prime only.

Worthwhile going through in detail with a broker, but not one at a new development as they will just say go for it and chuck an application in.

All the best