Mortgage with bad credit

Ettaylor

Hi,

Can I get a mortgage with bad credit and little or no deposit?

kingstreet

I'd say very, very unlikely.

As it's impossible to get a mortgage with a very good credit history and no/little deposit, a poor credit history is not going to help the chances.

jucee84

Looking for a bit of advice on this also.

My current credit score in 761 which is regarded as fair.

I have 0 missed or late payment in the last 12 months and 0 accounts overdue. (No missed/late payments since I had some personal problems in 2009)

£1800 on credit card (70% of my card limit)

I have 3 defaults on my credit file, all in 2009, which have all been settled in full.

My girlfriend & I are looking at putting an offer in for a house we've viewed. The property is on the market for £115'000. We have a deposit of £15'000 between us.

She has no credit cards and only has a mobile phone contract with no missed or late payments.

Will we have any problems getting the required mortgage of £100'000 over 25 or 30 years? We are both first time buyers.

Thanks in advance

kingstreet

Three visible defaults and a 10% deposit will be very difficult.

Can you buy in her name alone?

If you buy for closer to £100k and put down 15%, you might find life a bit easier.

Put your case to a broker.

Dave_Ham

Spot on.

This is likely to only work on a sole name basis or with a 15% deposit.

Best try and speak to a broker (and not the Estate Agent ones)

All the best

jucee84

Can't buy in her name alone as her salary is only £12k, mine is £30k.

My parents are willing to act as guarantor's if needed, would this help?

How much of a deposit would you say we'd need? 15% ?

Dave_Ham

15% deposit makes this issue manageable, but the lenders in this sphere will be checking your last 3 months bank statements inside out.

You will need a broker too, as you are extremely unlikely to find a solution on the highstreet

jucee84

So if we had a deposit of £17-18k you think it would be manageable?

How much are the likey broker fee's?

kingstreet

If you buy for £115k, 15% is £17,250.

You need to work out how much you are prepared to pay for the property, then work out 15% of that...

jucee84

We have around £17k saved but was keeping £2k back for any buying fee's.

jucee84

We also had an agreement in principle which ran out around a month ago, for a mortgage for £108'000 with our 15k deposit. (£145k was mentioned as the most we could borrow, but not looking to borrow anything like that)

So if we had this is it likely to go through if we had an offer accepted on the property?