What are my chances?

amy662

Hi there
Hoping somebody on here can give me a realistic idea of what to expect regarding attempting to go for a mortgage.

I have had a poor credit past...however I have made it though the other side :j.

I have spent 2 years in a DMP with CCCS and completed the plan in May of this year.
I have no existing borrowing and I currently have £4000 savings towards a mortgage deposit.
During my time on the DMP, I have acquired 3 x defaults, they are;

1) Halifax £299 March 2011
2) Capital one £178 March 2011
3) Natwest £450 March 2011

All of which are off in March 2017.

I am not hoping to go for a mortgage, certainly until April at the very earliest although if the landlord wants to extend tenancy it will be January 2015. I am hoping to buy the house in which I currently rent-once the landlord has settled in his new life in Australia.

Should I expect to be turned away for a mortgage?

The house is valued at £122,000 and I currently earn £29,998 P/A.


Thankyou

amnblog

you are nowhere close on deposit Amy.

you are likely to need at least £18,500 unless new products come on to the market in the next few months.

Dave_Ham

I concur. 15% deposit, March 2017 or a brand new unexpected product/criteria change; whichever comes first.

Best of luck

amy662

Thank you for your replies.
I am due a rebate in April taking my deposit up to minimum £9000. If I am in the position to buy prior to when the defaults are off, then my father will be gifting me the rest of the deposit.

Dave_Ham

If Dad will gift you at 15%, you potentially can buy now..

amy662

Ok great- I was concerned that deposit aside the defaults would prevent me from obtaining a mortgage. Thank you for your replies.

jacobtheamish

What about the Help to buy mortgage guarantee scheme, 5% deposit is a tad over £6,000. Hopefully lenders will have products out in next few days. Although your credit history might rule that one out.

amnblog

no H2B with that credit file Jacob.

jacobtheamish

amnblog wrote: »

no H2B with that credit file Jacob.

What about waiting post April 2014 when the defaults are over 3 years?

Dave_Ham

Nope, 3rd guess or it goes to the studio audience

kingstreet

95% is a non-starter with three defaults while they are still visible, HTB, or no HTB.

If there's a chance of a parental gift to get the deposit up, the situation may be different. Get all three versions of your credit file, see what's visible on each and put the case in front of a whole market broker for his/her opinion.