Will my credit history stop me getting a mortgage

kris_715

Hi there,

looking for some advice...

im 25 years old and have a somewhat jaded credit history/rating, it is on the rise and all my debt is practically paid off, i have about £500 outstanding.

i earn good money and in the past six months have shrunk my debt from £4000 to the a fore mentioned £500. i do however have 3 accounts on my credit record regarded as defaulted but the status at the end of this month will read on them all as "settled" i am about to start looking for a property and my question is this will my credit history affect me getting a mortgage.

i will be taking out a mortgage with my father who will be putting around a 50% deposit on the property, will this help my chances of getting a mortgage.

any information you can pass my way will be greatly appreciated.

GMS

How much were the defaults for and when?

Is your Dad planning to live in the property with you or just giving you the deposit?

kris_715

the defaults varied between £700 and £2000. my dad would not be living at the property full time as he works abroad.

kris_715

the defaults were from 2010ish but have only recently been settled

GMS

What income do you have? How much are you looking to borrow?

kris_715

my dads income who i would be taking the mortgage out with i.e. he'd be putting his name on the mortgage as well, if that makes sense, is around £120k-£150k and mine is £20k would be looking to borrow around about £100k

choppy1

I'm not going to lie to you mate, but defaults are a massive issue when it comes to mortgage applications. If you want to avoid a usurious interest by going for a bad credit mortgage my advice would be to wait a good while until your credit history settles down, and make sure you manage your payments well (perfectly!), for a good period of time.

Having said that, there are high street lenders who will look at you given that your defaults are (or soon will be) 3+ years old. Without naming names, you could try some of the bigger building societies.

The fact that your dad will be on the mortgage will be of no importance whatsoever if you ultimately have responsibility for any part of the loan.

Overall the advice is: settle down, get your credit files, manage your finances, fix the problems, be patient. You will ultimately be a lot better off than if you rush into something before you are fully prepared.

kris_715

how would the bank know that im ultimately responsible for the mortgage payments, why would they not view it as we're both putting down a 50% deposit and from then on in everything will be split 50/50?

leereni

How long do you think he should wait until looking seriously?

lovinituk

kris_715 wrote: »

how would the bank know that im ultimately responsible for the mortgage payments, why would they not view it as we're both putting down a 50% deposit and from then on in everything will be split 50/50?

If your dad did a runner you would be responsible for 100%, not just 50%.

curious_

Kris, as far as I am aware by making a joint application with your father you are both ultimately responsible for ensuring that your mortgage payments are made on time, regardless of what percentage of the deposit each of you contributes.