Morgages with a bad credit history?

AberdeenKev

Hi all

Just registered today and hoping someone can help me out. I'll try and keep it short and sweet.

When i was at uni i racked up just under £2,800 in debt, to a bank (overdraft) and 2 credit card companies. Basically i ignored there letters and had debt collectors letters (in the hundreds) sent to me. However i went off to work in USA for a year and when i came back i moved in with my girlfriend at the time. Now im 31 and a lot more responsible, make a decent salary £26,000 and in a position to pay the debts off as i now want a morgage (tired of throwing away money leasing flats)

When i contacted Experian about my credit report they advised me that the debts were about to be taken off my report due to the 6 year time limit (one in July 2007 & the other 2 in November 2007)

So i guess my questions are as follows

1 ) Is it worth paying the debt as they will be taken off my report and i'll get the chance to make a fresh start

and 2) How easy/complicated will it be in getting a morgage with my past history. Does anyone know the process that happens when people who have been previouly blacklisted apply for a morgage.

I hope the above is clear and i would really appreciate your comments/suggestions.

Kind Regards
Aberdeen Kev

Burlesque_Babe

All mortgage applications will be credit scored and a credit search will be done. Even if you pay the debts, they will still remain on your record until the dates you mention, although they will be marked as Satisfied.

You will probably get good advice on the MSE Mortgages board, but as I was in a similar position, I was advised to speak to an all of market advisor as any offer will be subject to your own personal situation.

It seems there are mortgages out there for just about everyone, but it will be the interest rate and any strings attached which you will need to decide if it is worth going for now, or waiting until December/January when your credit report gets cleaned up.

rayday2

We have a special mortgage because of defaults no CCJ's and we pay about 8.1% so you can get special mortgages but you pay for it.

AberdeenKev

Hi Keren29 / rayday2

Thanks for your quick responses.

Keren29, i was wondering if i wait till next year, even if i dont pay the debts and its "not satisfied" it wont make much of a difference seeing as if a morgage lender does a credit score my past history wont show up anyway and they will be non the wiser. Therefore im assuming if i wait till next year i wont need to pay any higher interest rates or be expected to put down a ridiculously large deposit.

Rayday2, i was wondering if you knew what rate you would be paying if you never had any defaults. Any ideas what the industry average is??

Will also give the MSE morgage board a go.

Thank god its Friday, hope you guys have a nice weekend

Cheers
Kev

kydon

this is an interesting question! (I mean the last post from AberdeenKev)

Burlesque_Babe

AberdeenKev wrote: »

Hi Keren29 / rayday2

i was wondering if i wait till next year, even if i dont pay the debts and its "not satisfied" it wont make much of a difference seeing as if a morgage lender does a credit score my past history wont show up anyway and they will be non the wiser. Therefore im assuming if i wait till next year i wont need to pay any higher interest rates or be expected to put down a ridiculously large deposit.

Rayday2, i was wondering if you knew what rate you would be paying if you never had any defaults. Any ideas what the industry average is??

If you have had no contact from the companie for 6 years they will drop off your record, but if you can pay them off, at least they will be marked as satisfied if you want to get a mortgage sooner. It will still depend on your circumstances though, although saying that, i've got a tiny satisfied CCJ that drops off in 11 months time (woohoo!!!) and I'm literally just about to move to a mortgage which is fixed for 3 years at 5.49% - so they can be found.

The mortgage gang will be able to help you, there are some mortgage advisors 'living' over there.