Mortgage with poor credit history but now debt free

Twinkles1

Hi hope someone can offer some advice :

Is it possible to get a mortgage with poor credit rating although now debt free? All debts were paid off at start of this year but credit report shows as poor. No ccj's from the past, just a couple of defaults and late payments. Household income is now £32,000 per year and deposit of £20,000 available. Any advice on who to approach for a mortage and what chance of acceptance is there with the above situation? Thanks in advance.

ACG

When are the defaults DATED?
How much were they for?

how much is the purchase price (roughly?)

This is probably one for a broker but if you answer those questions, we can let you know what your chances are.

Twinkles1

Thanks for prompt reply. Defaults go back over last few years (we went through a terrible financial time) but were paid in full at start of 2013. Largest default was for £2,000 although we were paying back each month through Payplan and never missed a payment. The purchase price would be roughly no more than £130,000.

Thanks again.

ACG

The payplan is going to probably cause the biggest problem here.
But we need to know when the defaults were dated - over 2 years, over 3 years over 4? Its quite important.

Also the payment plan, when did that finish? Did you pay back the full amount or partial?

Twinkles1

I will look at exact dates/figures etc and get back to you later (I appreciate your help!) . I know we finished with Payplan (our decision so we were making larger monthly payments to creditors to try and improve situation) year before we paid everything off in full. We made sure everything was paid back in full and not partial as we wanted a complete clean slate. Just checked in Experian and credit rating is a poor 631

Twinkles1

I have now looked at dates amounts etc, including my file and also husbands (who had less defaults but one huge one).

We started with Payplan in 2005 and paid them every month for them to pay off our creditors (we never missed a payment) although this eels to have done more harm than good, should of just done it ourselves.

Defaults were registered a long while after we were into our Payplan arrangement for some reason, unaware to us.

Defaults as follows:

Default Balance 2,519
Default date 22.11.10
Satisfaction date 31.113

Balance 11,418 (I am horrified at this!)
Date 17.5.10
Satisfied 31.1.10

Balance 61
Date 20.11.12
Satisfied 2.1.13

Balance 2,519
Date 22.11.10
Satisfied 31.1.13

Balance 166
Date 18.5.09
Satisfied 2.12.12

Balance 1459
Date 3.4.09
Satisfied 24.02.13

Balance 549
Date 12.6.12
Satisfied 5.2.12

Balance 336
Date 9.12.08
Satisfied 10.2.13


I feel sick and ashamed looking back at this and am so glad we owe nothing to anyone having repaid everything off in full.

No second chances with credit and very much doubt we will ever get a mortgage.

Dave_Ham

You will be eligible for a mortgage again, although without a significant deposit it will much more likely be in 2014+

Well done on paying the debt back, time is a healer.

All the best

ACG

Forget the score experian gives you, its as useful as a glass hammer.
For this sort of mortgage i suspect you will need lenders who do not credit score anyway in which case they have criteria - you either fit it or you dont.

I think you really need to get all 3 credit reports including equifax and call credit down to a decent broker (not an estate agent based broker) to chat this through with them. There may be options available to you.

Twinkles1

Thank you so much. We will continue to add to our deposit and look at mortgages again maybe end of next year. Such a relief to not worry about the phone ringing or post coming through the door. I truly sympathise with people living with debt after being there myself. One thing good to come out if it all is that my son (now an adult) has been told all about our history and it has made him very cautious with money. My heart goes out to those who are drowning in that horrible sea of debt.

ACG

Sorry, just seen your previous post.

I think with a 15% deposit this is going to be very difficult. I echo daves comments in that this is probably more one for next year (june time) although it would still be worth getting all 3 reports down to a decent broker to see if they can do anything with them.

Thrugelmir

Have you saved the £20k deposit yourselves or has it been gifted to you?