How long? (Ironically a long winded post!)

amy662

Hi there
I have been in a dmp for 2 year with cccs. In April I was finally in a position to clear all my remaining debt (about 5k). During this time My credit rating took a battering and I gained 2 defaults on my credit file. These occurred within the first few months the plan was set up due to late payments.
My credit score is very poor at present(368). Although I am hoping that now I have paid all debt off and enrolled on electoral role- my credit score should slowly start to rebuild itself.

My question is----
How many years do I need to wait for my credit rating to be repaired enough to be accepted for a mortgage?
I am in a position to save £1000 a month towards a deposit-with a gift from parents of £5000 towards it.
My rent is up for renewal in January (hopefully will have 15k deposit)and I am planning on buying the house I am living in(approx £120-000). My landlord is very flexible and will extend tenancy for a further 12 month if I am unable to obtain a mortgage next January.
Am I being realistic in thinking I could be accepted for a mortgage in 1-2 years?
I earn £25.528 basic with £6k overtime
Any advice would be great
Thanks

ACG

You could probably get a Mortgage relatively soon - January may not be out of the question, but i would expect you need a good 25-30% deposit. I would also say the interest rate would not be great... i had something similar on my desk about 2-3 weeks ago and rates of around 6.99-7.99% plus a 2% fee were being mentioned by lenders.

The fact you paid it off early is potentially your saving grace here.

If your after a "normal" rate with a 15% deposit then i think you are going to be waiting more like 3-4 years.

amy662

Thanks for the reply.
I am likely to renew the tenancy until Jan 2015 which will give me an extra 12 months to save a higher deposit, however I am conscious that the landlord could change her mind and want a sale in January.
Your advice is much appreciated.