First time buyer - right to buy - previous credit problems.

CherylOB

Hi all,

I am looking for some advice.

I was declared bankrupt in 2006 and discharged the following year. This is no longer on my credit file.

I have 4 credit cards, all with small balances, which I obtained to help rebuild my credit. Vanquis, Capital One, Aqua and Barclaycard Initial.

I have the right to buy on my flat. As I am in inner London, I will receive £100k discount, bringing the cost of my flat to around £80k.

Can anyone advise me regarding firstly whether I would have any chance of getting a mortgage and realistically how much deposit I would need.

Thanks

Thrugelmir

Why the need for 4 credit cards if you previously had credit problems?

ACG

You would have a chance definitely, but i think your best speaking to a broker to make sure you go to the right lender. A lot of lenders say they will consider once its 6 years old - but not all will accept it.

CherylOB

Thanks for your replies.

Thrugelmir - Do you think I should close some of them?

ACG - I know you can't recommend a broker, but I am pretty clueless with this and would hate to get caught out. Any ideas where I would find a good one?

Dave_Ham

Additionally, it would be worthwhile prior to engaging a broker (which you will require and a good one) obtaining all of your credit files.

These are Experian, Equifax and Call Credit to ensure no nasties are left over from the bankruptcy days.

Additionally, dig out the bankruptcy paperwork so you can be clear which creditors formed part of it as this will be useful.

This is likely to be achievable, although dependent upon the detail of your case as many of the "adverse lenders" will not accept the Right To Buy discount

Ensure if you go Google etc. that any broker you engage only charges a fee that is refundable if they cannot achieve a mortgage offer for you, or payable at mortgage offer.

Good luck

somethingcorporate

IIRC the RTB discount should be able to count as the deposit.

Key question, how much do you earn? You missed this key bit of info out!

Good luck

Dave_Ham

somethingcorporate wrote: »

IIRC the RTB discount should be able to count as the deposit.

Key question, how much do you earn? You missed this key bit of info out!

Good luck

With main stream lenders yes, many adverse credit lenders will not accept Right To Buy/Acquire or will accept only if the client can provide their minimum deposit levels for such a purchase.

CherylOB

Dave Ham - I 'cleaned up' my credit files when I was discharged from bankruptcy. I checked them earlier this year and they were all up-to-date. I will check again though, as it never hurts..

Regarding the adverse lenders and right to buy discount, You are saying that I would require a deposit? How much would you think that would be?

somethingcorporate - That would have been helpful wouldn't it! I earn £26855 per annum. I receive £205.70 per month child maintenance (not sure if that is taken into account) and currently £72.70 per month tax credit.

ACG Thanks for the recommendation.

Dave_Ham

Good work, not necessarily essential to have a deposit; just need to be aware that not all lenders will accept this as the source.

I would assume this is achievable subject to the details. Employment will fit.

Another item for a broker to sanity check is the actual address; some lenders have issues with certain parts of London and the various Estates where Ex Local Authority.

Not being negative, just letting you know the variables that will need to be managed.

Good luck