mortgage chances with settled default

firsttimebuyerscotland_2

Hello,

This is my first post, ive had a read through lots of similar posts and I know my mortgage chances are not good but I thought I'd see if anyone had any specific advice.

My partner and I are trying to get a mortgage for around £100k with a £10k deposit. I planned to get the mortgage in my name as my partner is self employed with a low income of 10k whereas I have a stable job with an income of 31k.

Problem is I have poor credit, he has good credit. Will we have more chance if we apply together?

I have obtained my credit report...I got into a payday loan spiral a couple of years ago (i know!!) resulting in a £400 settled default and an £800 arrangement to pay which I just paid off earlier this year. Aside from this I have an HP account of £13k with a perfect record, 2 closed loans with perfect payment history and a mobile phone and catalogue with perfect history.

I have sent my credit file to broker London & County but the person on the phone didnt sound too positive...understandably.

Does anyone have any advice, do I have to wait to these accounts fall off my record?

Thanks in advance and apologies for the long post I just wanted to give as much info as possible!

ACG

Being in Scotland and a 10% deposit makes it very unlikely - but you dont say how old the defaults are.

Are they under or over 2 years or 3 years?

Can you get to a 15-20% deposit?

firsttimebuyerscotland_2

Thank you for the quick reply. Thats what I thought.

One default was settled in Apr 10, so over three years and the other was an account in arrears and I made a repayment plan (as good as a default im told) in Jun 12 and just recently settled that.

The higher deposit is an option, we could save for longer or lower our expectations in terms of property value. Would a lower ltv increase our chances?

ACG

I think with how recent that default is you might struggle without a larger deposit.

Get all 3 credit reports and speak to a broker (experian, equifax, call credit). I dont really do many mortgages north of the border, but i do know there are less options - some of the options that i would look to use on a case like this do not lend on properties in scotland. I personally think you would be better with a local broker but i wouldnt say you have no chance i would just say it wont be the easiest.

firsttimebuyerscotland_2

Thank you. We may just save a bit longer but I will also contact a scottish broker and see if they have any recommendations.