Mortgages, Defaults and the CRA's scores?

lloydy22

Hi there,

I read on here that people say people like experians and equifax credit scores do not really mean anything.

I messed up a few years back and have several defaults on my credit file. I check all 3 regularly and have massively turned around my credit handling. I have a few clean accounts now but the defaults obviously remain until 6 years has lapsed. The vast majority of my defaults are beyond 4 years but 2 are still there and will be passing 3 years at the end of next year. According to the CRA's my credit score is very poor because of my history.

My question is, Me and my fiance will be looking at obtaining a mortgage early next year, We will have a 10% deposit and plenty of cashflow to help us through the process of purchasing a house. Our only worry, Is my credit history. For the past 2 years all has been fully paid up, I am debt free other than the small credit building accounts i have and i pay these in full every month. With defaults that are quite old, and a clear turn around in my management of finances, how will lenders view this? Or will it be as clear cut as the CRA's make out that nobody will be interest because of my scores?

Thanks for anybody that can help.

Tixy

You may be able to find a lender still willing to lend, but usually if you have a poor credit history, such as defaults, then they are likely to want a higher % deposit and you probably won't get the most competitive rates.

Might be worth an appointment with an independant whole of market mortgage broker for them to advise on which lenders may consider you and what % deposit they would likely require. That way you can then plan accordingly and decide whether or not you might need to rethink how soon you can buy, whether to wait until your file looks a bit better or until you have a larger deposit saved etc.