Help and advice needed, Please!!

t11cky

I am living in a rented house at the moment after a split up with my ex, I am also suffering with a couple of bits of debt, ok well more than bits!!

I am now 37 and very much want to buy another house ideally by the time I am 40 so it is realistic to have it paid off for my retirement.

My credit rating details on noodle are:-

Credit Rating 1/5

RBS Credit Cards
£ 2,390
01/03/2013
Default

Lloyds TSB
£ 2,438
31/01/2013
Default

I have not searched for credit for several months as I got told that failed searches will just do you more and more harm. I am currently just paying these debts off ata rate of £10pm through the two banks credit collection busines's but could pay about half off and have tried to negotiate with them but too no luck so far after a recent offer from myself of 25% to be repaid on the condition that they write off the remainder and am considering going in with afresh offer of 50% of the debt outstanding.

What are my chances of getting a mortgage in the next few years? and Am I doing things in the correct way to get my credit rating up??

I will be so grateful of any help and advice as I am now paying a lot more in rent than I was for my previous mortgage that was fully paid off after we split up. So frustrating as its a lot smaller house!!

t11cky

Please, any advice would be so appreciated!!!

dizzyrascal

Not an expert so hope someone else will come along and give some better replies but i think that having any defaults on your file is not great and they will be there for 6 years.
Next bit of bad news is that as you have only just defaulted and are paying your debts back, the finance companies have no reason to reduce your final settlement figure yet.
If it gets passed to a debt collection agency (where they may have bought the debt for peanuts), then you may be in a better position to bargain the f & f figure. Make sure that they mark your file as satisfied at that point, not partially satisfied though.
Main prob for your new mortgage will be the defaults though.

t11cky

I think these have already been passed onto collection agencies but please correct me if I am wrong, I am now getting letters from:-

BLS Collections for the Lloyds TSb debt
&
Wescot for the RBS debt which now seems to have moved onto 'Nelson Guest & Partners Solicitors'

Any knowledge or advice on how I can deal with this in the best manner would be so appreciated as I have upto £2500 to clear these debts which is obviously not enough to pay them both off as it stands!!!

t11cky

Its not easy to get any advice on here or am I just upsetting people, lol

krustylouise

I'm sorry most people on here do post very quickly, but seeing as its the Easter hols I'm guessing people may have other things going on and may not check on here as often as try normally would. I would suggest you post up an SOA so we can see where you're paying too much and an make cuts.

ss3n08

t11cky I doubt this help but my oh had debts which he had defaulted on and NO WAY was he able to get a mortgage. Again, someone more knowledgeable will be along sooner I don't think it will happen before you are 40 x

krustylouise

You may possibly be able to get a mortgage but it won't be from one of the big banks, and chances are it will be a higher apr. maybe worth popping over to the mortgage thread?

Sky_

You are also likely to need a big deposit. Right now you'd do better to focus on paying off debts and saving as much as you can, than worrying about future mortages. Retirement age is also going up all the time, so you should have some time to pay a mortgage off before you stop working.

What happened to your share of the equity from the fully paid off house you owned with your ex?

t11cky

Sky_ wrote: »

You are also likely to need a big deposit. Right now you'd do better to focus on paying off debts and saving as much as you can, than worrying about future mortages. Retirement age is also going up all the time, so you should have some time to pay a mortgage off before you stop working.

What happened to your share of the equity from the fully paid off house you owned with your ex?

I didn't mean the house had been paid off so we had loads of money, I meant the sale of the house had paid the amount outstanding on the mortgage so we didn't owe anything after the sale of the house on the mortgage but we also lost the majority of our deposit.
My main concern isn't getting a mortgage in the next few years even if its what I want to achieve but my main concern is paying my outstanding debts off, by paying as little as I can to them!!

krustylouise

I think I read somewhere on here that 30% is the lowest any company would go as far as final payments go.