Getting a mortgage with bad credit

spellkitten1

Hello I'm new to the site and wondered if anybody knew if having a deposit for a property helps when you have bad credit.

My husband and I are looking at buying a new build, however during my student days I got into quite a bit of debt, which was paid off over the last year. My husbands credit file is flawless. We do have a good deposit of a 3rd maybe a bit more of the property value, will this help getting a mortgage or should we wait till they are clear something that we don't really want to do as we are in our mid thirties. Many thanks in advance.

ACG

I would imagine with a deposit of 30% plus you should be fine, but what do you mean by bad credit?

Late/missed payments? IF so when?
Defaults/CCJs? Again, when? How much for?

Thrugelmir

Why the delay in clearing your debts if you have considerable savings?

spellkitten1

I mean by bad credit that I have defaults on my file and a CCJ. We came into some money at the beginning of the year. We decided to pay all debts off with it first and use the rest on a deposit for a mortgage, so the money we pay on rent can go towards our own home and possibly be something we can pass to our twins in the future.

GMS

When were the defaults and CCJ put in place and for how much? Have they been satisfied?

Broker needed for this one most likely.

spellkitten1

The CCJ was 2007 for £4200 and the defaults are similar 07 08 09 but for smaller amounts no more than £500. I was paying small instalments to clear them until march 13 when they were cleared in full. So they have not been clear long.

GMS

Assuming affordability ok you should be able to find a solution. Broker definitely needed.

pearson27

you need a broker who is prepared to listen and is not interested in a quick sell and you need a lender who will manually underwrite it.

my wife and i were in a similar postition - small defaults, an old ccj. i had two defaults settled this year.

i applied in may for a mortgage which was manually underwritten in a branch and complete tomorrow.

dont let all the people on here preach to you as im sure they arent perfect and things do happen which are out of your control. i feel if you have a valid explanation for the debt they will listen to you

ACG

As GMS says there will definitely be a solution here due to the age of the defaults and size of the deposit. It is one for a broker though but you should be able to get decent enough rates.