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Could I have some advice please - one for the brokers maybe!
LindyLoo1
Posts: 1 Newbie
Hi,
I'd just like some advice on my situation if anyone has time.
I earn £23,000.00 and in my area of Manchester I could get a decent property about £100,000.00. My plan really was hopefully apply to buy in January with the mortgage guarantee scheme. I already have a 5% deposit which I will continue adding to before January 2014 when the scheme kicks in.
However I have a default which although it is very small (£200.00), I never paid. This was because I was disputing it but the catalogue company concerned won't accept my version (which was true!) and I wouldn’t on principle for for goods that I hadn't received. I still believe that I shouldn’t have to but in hindsight, it has played such havoc with my credit file I would probably have been better paying it, unfair as this would be.
The default will come off my credit file in November 2014. Aside from a couple of late payments from when I changed jobs, my file is otherwise clear, I have credit such a mobile phone and a credit card which are up to date with no problems.
So my question really is would this default stop me buying with the scheme in January 2014? I know it would be a good thing to leave it until November 2014 when the default drops off but I am really worried that in January the properties are going to shoot up in price and I will be effectively priced out of it.
I feel in a bit of a catch 22 and would love to know if I had a chance in January with the scheme carrying a default or really if there was any way. Basically any advice on this situation would be appreciated!
I'd just like some advice on my situation if anyone has time.
I earn £23,000.00 and in my area of Manchester I could get a decent property about £100,000.00. My plan really was hopefully apply to buy in January with the mortgage guarantee scheme. I already have a 5% deposit which I will continue adding to before January 2014 when the scheme kicks in.
However I have a default which although it is very small (£200.00), I never paid. This was because I was disputing it but the catalogue company concerned won't accept my version (which was true!) and I wouldn’t on principle for for goods that I hadn't received. I still believe that I shouldn’t have to but in hindsight, it has played such havoc with my credit file I would probably have been better paying it, unfair as this would be.
The default will come off my credit file in November 2014. Aside from a couple of late payments from when I changed jobs, my file is otherwise clear, I have credit such a mobile phone and a credit card which are up to date with no problems.
So my question really is would this default stop me buying with the scheme in January 2014? I know it would be a good thing to leave it until November 2014 when the default drops off but I am really worried that in January the properties are going to shoot up in price and I will be effectively priced out of it.
I feel in a bit of a catch 22 and would love to know if I had a chance in January with the scheme carrying a default or really if there was any way. Basically any advice on this situation would be appreciated!
0
Comments
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There is no way of knowing if a visible default will be acceptable on a 95% scheme which does not start for six months.
I suspect not, but you'll have to wait until then to find out. If you carry on saving, by the time January comes around, you'll be in a better position anyway.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Get all 3 credit reports (equifax, experian and call credit), take them to a decent broker and they may be able to get round it.
At 95% you usually need to be squeeky clean, but due to the age it might not cause a massive problem. The late payments if more recent may though.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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