First Time Buyer but Will I be able to get a mortgage?

mardiemare2008

I am 24 and am aiming to be in my own house by the end of 2014. I am single, so the mortgage would be solely in my name and i would be looking at 2 beds around £65000. Getting a 10% Deposit for the house will not be an issue as next year I will be able to sell some shares I have purchased through my employer. My only issue is whether i will be able to get a mortgage for the remaining 90% of the house.

When I first turned 18 I was a bit of a wild child and got myself into debt, I defaulted on several accounts as I did not really understand the impact this would have. A few years ago I paid all my debts off and now manage my accounts really well and regularly check my credit file and bank statements etc.

My Credit Score is only 270!!

At the moment I still have 2 defaults on my file that have been satisfied and two late payment markers from Orange from 2011. Default dates are Jan 2008 and July 2010. I am under the impression that the 2008 default will drop off my file this coming January. But I am worried about the 2010 default. I also have a £1250 Student overdraft that I am currently budgeting to pay off. (£800 left to pay, should be able to pay back within 4 months.)


I also got a high interest credit card from capitalone last May, and have used it to try and rebuild my credit. For the last 15 months I have made purchases on the card, and paid back in full every month so I have avoided the high interest. But I have not noticed any positive effect on my score?

Anyone know which Mortgage company would (if any) be able to help me.... and any ways to increase my credit score would be greatly appreciated

Thanks

Tixy

Don't worry about the score, its the actual data on your file that you need to look at.

If you will still have a default on file at the point you apply for a mortgage then you will probably struggle to get a 90% mortgage. With a default you would generally be looking at subprime mortgage lenders and so would likely need a deposit of 20%+

Your credit card for improving your credit file - are you paying this after the statement has been produced each month (some people pay back straight away before the statement and that won't help build up a positive credit history).

Once your debts are clear and the first default dropped off maybe try speaking to an independant whole of market mortgage broker. Take along copies of your credit files and speak to them about whether getting a mortgage is realistic and how much of a deposit they think you will need and how competitive a rate they may be able to find for you.

mardiemare2008

Tixy wrote: »

are you paying this after the statement has been produced each month (some people pay back straight away before the statement and that won't help build up a positive credit history).

Yes, I wait for the statement each month and then pay it in full. I use it to pay for my diesel each month..

mardiemare2008

*UPDATE*

I have paid off my student overdraft in full & have no outstanding debts woohoo!! My first default has now dropped off and my Experian is now showing my credit score as 785 .

I have opened a save2buy savings account with Nationwide and so far have around £800. (My shares are worth about £5,000 but I cannot sell them until 2016.)