Mortgage lender advice

peanuts9

I was wondering if anybody had an idea as to which bank is most likely to offer a mortgage to somebody with previous credit problems?

I am under no illusions that I am not going to be able to get a mortgage for a good few years yet due to my history, but now that I am getting things under control I am planning ahead for the long-term. So my intention is to transfer my current account to a new bank, with a view to running that account responsibly for a few years with a view to potentially applying for a mortgage in a few years time.

Thrugelmir

Why not run your existing bank account responsibly? Your history is in the past. Now look forward.

fluffpig

I think its impossible to say as banks change their lending criteria all the time. I kept my current account with Barclays and have just got a mortgage with a small local building society having previously had an IVA

_Andy_

peanuts9 wrote: »

I was wondering if anybody had an idea as to which bank is most likely to offer a mortgage to somebody with previous credit problems?

I am under no illusions that I am not going to be able to get a mortgage for a good few years yet due to my history, but now that I am getting things under control I am planning ahead for the long-term. So my intention is to transfer my current account to a new bank, with a view to running that account responsibly for a few years with a view to potentially applying for a mortgage in a few years time.

If you're thinking a few years from now then I don't see the value in finding out which lenders would offer it now.
Shifting your bank account isn't going to change the fact each lender will still have their own lending criteria - and even if they did, it could be totally different in a few years.

Better just to stick with your account as is, and run it responsibly, as suggested above.

amnblog

Crystal balls are not our thing here.

Just keep your credit file as clean as possible and you will have to see which lenders you fit with given the situation your are in when you decide to buy.

ACG

When you say credit problems what do you mean?
Late/missed payments? If so how many and how recent?
CCJs? How many, how recent, how much for and are they satisfied?
Defaults? Same as above...
IVA/Bankruptcy/Payment plan? Again how recent?

If your talking about 2 CCJs for £50 from 2 years ago its probably placeable tomorrow.

How much were you hoping to buy for and how much would the deposit be?

peanuts9

Thank you for the advice.

The reason I was asking, is that my previous credit issues were partly with my current account holder. Therefore, I didn’t know if I would be better off closing that account and starting afresh with a different bank, so that I could look after the account properly from day 1 if that makes sense.

Based on the advice/feedback though I will stick with my current bank and try and rebuild my trust with them from now on.

Just to clarify, my previous issues relate to defaults on debts/loans that I had. It never reached CCJ status or bankruptcy, however I am now on a DMP for which all payments are up to date. As I indicated earlier, I am under no illusions that it will be several years before I am anywhere near being able to afford a mortgage, but as I am about to start a new job and I feel that I am starting to get my finances under control for the first time, I was considering setting up a new account if it would potentially have a benefit in the longer run.

ACG

Do your best to pay the DMP off early.
As things stand currently, i would say you will be looking at about 2-3 years AFTER that has been cleared plus a deposit of around 25-30%.

The types of lenders who will accept you are unlikely to be high street banks so i dont think it matters where your banking is from that perspective.

Obviously a lot can change in the next few years which might make it easier for you so its worth looking at once you have cleared the DMP and got say a 15% deposit saved.