Mortgage - Poor credit

anyadvicegreatly

Hello
I really hope someone can help me this and I would really appreciate any advice you have:
I’m looking at getting a mortgage and I have an adverse credit rating and I am with the CCS paying off some old debts, I have never missed a payment.

kingstreet

While you have an ongoing debt management plan, this will be very difficult, if not impossible.

Could you give an indication of what that £75k will equate to in percentage terms? ie what loan to value are you looking for?

The underlying credit issues showing on your file will also be an issue. Once you've missed three payments or part-paid three times, the account goes into default and this remains on your credit file for six years from the date of registration.

So, what adverse credit entries do you have, when were they registered, how much for and what was the reason?

If you haven't already done so, get a copy of your statutory credit file from all three CRAs so you can see the data on each one. Put them in front of a broker for a proper analysis of your situation.

GMS

What is the total amount of defaults/CCJ's showing on credit file?

anyadvicegreatly

Hello, thanks for your reply

I don't have any CCJ's just 1 default showing for £928 and when i click through it (i did this on noodle) it says £3000 but i'm not sure why, i think that was the total amount to start with.

ValHaller

When does this default date from? And is it correctly dated in your credit record?

Plus with £1100/month of bills on £42000/year it seems strange that you have not cleared this lot off in 5 years on a DMP??

GMS

How many debts formed part of the payment plan? Did only the 1 default?

anyadvicegreatly

It was 4 debts and yes only 1 defaulted but i wanted to put them all together into 1 payment each month when i was really struggling

GMS

Speak to a broker. Get copies of credit files from Experian, Equifax and Call Credit.

Is the 200k purchase price able to be reduced at all?

ValHaller

anyadvicegreatly wrote: »

It is dated every month in the noodle record but i think that is because CCS is only paying part of it off. I've only just been promoted so haven't been on that salary very long and had to save and replace my car as i need it for my job and of course wouldn't want a loan for that. I guess that i didn't think I would ever be able to buy anything so just left things as they were, stupid I know.

But when does the default originate from? Because this governs when it should come off your record.

As for explaining not buying straight away - you can always say that you need to get a loan paid off to increase your affordability.

Dave_Ham

If everything looks good on your current statements and you are living within your means, with this deposit I would suggest you certainly have a fair chance of achieving a mortgage.

You are absolutely going to need your credit files and absolutely need a decent broker.

Best of luck

Thrugelmir

ValHaller wrote: »

But when does the default originate from? Because this governs when it should come off your record.

The account will continue to be scored as being in default until finally cleared.

Often causes confusion. In legalese. A default is where an account is not being paid in accordance with contractual terms.

So a lender issues a default notice. However they will also continue to mark the account as in default every month with the credit agencies. Until such time is it cleared or brought back into line.

The whole purpose of credit scoring is to warn other lenders of a borrowers conduct. Not provide an illusory personal rating which often has little real worth.