FTB Poor Credit History

theerroll

Hello all,

I am an occasional poster on other boards all though I haven't been on for some time.
I need some general advice and was hoping you people maybe able to offer some....

I am 28, married 1 child (2yo) and my income is the only one we have at present.

I earn £28k a year (sometimes more, dependant on time away from home) I live in subsided accomodation from my employer.

I applied for a mortgage of £130,000 on a house worth £145,000 and I was declined by the Halifax.

This I believe due to the fact that I have 4 defaults against my name, all of which are approcahing the 5 year mark.

I am incredibly keen to get onto the housing ladder sooner rather than later. I have put in an offer for another house of £113,000 and I'd be looking for a mortgage of around £98-100,000.

I don't want to hinder my chances with wasted applications.
My recent credit history is good, I have even been granted mainstream credit from my bank as well as other lenders, Cap One, Vanquis and Barclaycard. I currently have outstanding balance of around £4000 which is on my Lloyds Credit Card.
I was thinking about cancelling my Vanquis account. as it has a very low balance. (around £40)

Can anybody recomend a lender that I may stand a good chance of acceptance with? If I have to go Sub Prime then I have to, in a couple of years time I will hopefully be able to remortgage with a mainstream lender and reduce my intrest rate.

After many google searches I am struggling to find anything, and I know how difficult it is to obtain a mortgage at the moment.

While I do owe some money, my payments are always on time and my job is incredibly secure.

I llok forward to hearing from you.

Thanks very much!!:beer:

Yorkie1

The brokers on here aren't allowed to recommend specific lenders to you because it breaks the forum rules and their professional rules too.

Do you propose to repay the CC debt before you get the mortgage?

I suspect the brokers on here would need to know the details of the defaults (amounts, and dates of when satisfied) to indicate whether this is likely to be a mainstream lender case.

To be honest, you will probably do best by getting in touch with a local broker who can minimise the number of searches on your record.

ACG

At 85% it wouldnt be a problem getting you a mortgage.
The problem you have is that you have defualts and your looking at 90% products... for those products you really need to have a very clean history.

You firstly need to stop applying for credit until you know you have a lender who will accept you.

I would suggest getting all 3 credit reports and sitting down with a broker. This could end up being very difficult to place unless you can get the deposit to 15%.

theerroll

So if they accept my offer of £113,000 (it's a repossesion, with asking price of OIRO of £119,000)

I maybe able to muster close to £18,000 but that would be my maximum, you think I should be ok getting a mortgage?

None of my 4 defaults are over £1000, all are satisfied and range from very late 2008 to very early 2009. (I was very stupid.)

Thankyou for your advice so far!

Thrugelmir

Clear the credit card debt first. As this may well impact any application at the LTV you are applying for.

ACG

I still think you will need a broker with 4 defaults, but i would be confident providing everything else fits of getting the mortgage through at 85% LTV.

Senior_Paper_Monitor

This is going to be about the detail and I reckon you are an 80% case at best (based in the very limited info provided).

If you are looking at repos then the difficulty increases exponentially in terms of getting the offer accepted - competive tender / validated client etc.

I know its a boring and repetitive answer - and one which many will suspect has a personal perspective behind it (and 'no' we don't want the case) - but you need a good broker on the case deciding what is possible and 'stage managing' any application.

.... and expect to pay a fee (this one will be hard work)

kingstreet

If you are looking to pay £113,000 you need at least £16,950 deposit, 15%, but £22,600 or 20% will open more doors for you.

theerroll

Well thanks everybody, don't quite know where to go from here, they way I see it is it will take me about 6 months to raise my deposit to plus £20k so I may as well speak to a broker and let them apply to at least a couple of lenders, see where I get with a %15 deposit. I am seething at myself for those 4 defaults. especially as they do not have any reflection on my current situation or indeed the last 2-3 years. But time can not be undone.

Many thanks all

ACG

If your broker cant place this within 2 attempts find another broker.

There are lenders who do not credit score and ignore defaults over x years old. So presuming you have had no defaults CCJs within the last couple of years and generally speaking you have no missed/late payments and pass affordability this should be placeable all day long.

swanny78

I have been waiting for my application to be decided upon with Natwest. Its been in a week now and im nervous as hell. Would like some experts to tel me if they think it has a good chance of being accepted (or not). Obviously its only your opinion I wont hold you to it ;-).

Facts:
House Price : £346000 (New Build)
Deposit : 5%
HTB : 20%
LTV : 75%
AIP: Accepted
Mortgage : Natwest (FTB)
Equifax Credit score : Good
Salary: £75,600
CC Debt £8k (could pay off £4k if it helps, but just have paid £4k since applying to get ot to £8k)
2 Loans: Car Loan £288 p.m. (3 years to go) Personal loan £108 p.m.(18 months left)
Dependants: 3 children oldest is 11, and wife (works part time but not included her salary for mortgage)