Poor Credit Rating still want a Mortgage

TikToc

Hi There,

Is there any point me going to the bank asking for a mortgage if I and my partner have a poor credit rating.

I pay my rent every month and think that it is time to start investing it in something I own instead of someone else's property.

I would not be looking for a mortgage that would cost me any more than my monthly rent so that I would be sure that I could afford it.

I know it is a general question but not really looking for a very specific answer just a general vibe from the community. Any tips from the community who have found themselves in this situation would be warmly welcomed also.

Many thanks all.

~Beanie~

What do you mean by 'poor credit rating'? Do you have any CCJ's or defaults?

How much deposit do you have?

ACG

Without knowing more about the bad credit, how much your income is and deposit its impossible to say.

In theory its possible to get a mortgage with bad credit yet - but what is available will vary depending on whether its late payments, CCJs, defaults, bankruptcy, debt management plan - how much these were for and when they are dated.

kingstreet

5% deposit - 0% chance.

40% deposit - 99% chance.

Inbetween, more lenders will appear in your potential pool the further your deposit moves towards 40%.

TikToc

Thanks for the replies.

I don't have any CCJ's but I have let a credit card and a loan from HSBC slip in to the hands of a debt collection agency where my repayments have not been regular.

Other than that, no CCJ's, IVA's, Debt management or Bankruptcy.
I think the above may count as defaulting or late payments.

thanks for the help so far.

regards

kingstreet

What is actually visible on all three versions of your credit file?

Different lenders give information to and take information from only one, or sometimes two of the CRAs.

If you do not yet have all three credit files, get them when you plan to take this idea further.

Three or more consecutive months' payments normally results in a default being registered and paying a reduced amount sees an arrangement to pay recorded.

TikToc

kingstreet wrote: »

What is actually visible on all three versions of your credit file?

Different lenders give information to and take information from only one, or sometimes two of the CRAs.

If you do not yet have all three credit files, get them when you plan to take this idea further.

Three or more consecutive months' payments normally results in a default being registered and paying a reduced amount sees an arrangement to pay recorded.

Thanks.
You mentioned 3 versions of my credit files. As far as I am aware there is only Experian and Equifax. I will apply for both but is there another agency I should be checking?

Cycrow

the other one is CallCredit.
This can get checked for free via Noddle

TikToc

Cycrow wrote: »

the other one is CallCredit.
This can get checked for free via Noddle

Many thanks I will check this out.

kingstreet

Do not pay for worthless numbers the CRA calls a credit score. They are indicative at best and misleading at worst.

Get your paper credit files for £2 a pop and put them in the hands of a good whole market broker.

Foxy-Stoat_3

TikToc wrote: »

Thanks for the replies.

I don't have any CCJ's but I have let a credit card and a loan from HSBC slip in to the hands of a debt collection agency where my repayments have not been regular.

Other than that, no CCJ's, IVA's, Debt management or Bankruptcy.
I think the above may count as defaulting or late payments.

thanks for the help so far.

regards

Has this been cleared now?

Do you have a deposit saved and whats the value of property you want to buy?