Mortgage chances with defaults

Actual

It is my intention to visit an independent financial advisor in the next few days, but before I do (and to check I am not wasting my time), what do this board's IFA's think about the following.

I earn £31.5K p.a.
Wife earns £21K p.a.
(both full-time, secure employment)

Wife has 1 credit card default from January 2011 £4,000 (credit card).
We both defaulted on our Barclays overdraft (join account) £3,747 January 2010.
I defaulted on a credit card, amount £1,849, July 2011.
I took out about 5 or 6 Wonga loans in 2010-2011, none defaulted, all paid back on time. I had no idea this was adversely effect my credit file at the time of taking them out.

In December 2009 I lost my job. I eventually became a civil servant in 2010, but the damage to my finances was already done (hence the defaults above). My employment is now secure.

With the above in mind, do IFA's here think I would be able to get an adverse mortgage? I would be looking for a mortgage no bigger than £100K. What about Help to Buy? Would these defaults mean I would not qualify for Help to Buy?

We would, ideally, want a joint mortgage. Our current house (we are in negative equity), is in my name solely. I have a 10% deposit.

On the upside, I have had my Halifax mortgage since 2006 and have never missed a payment. We had a secured loan on the house (£15K) but I paid this off in October 2012 (never missed a payment on that either).

All the above shows on our credit files. Appreciate some honest opinions about our chances. 90% LTV do-able?

Thrugelmir

Have you settled the defaulted accounts?

Dave_Ham

Hi - help to buy almost certainly a non runner as is a 90 percent LTV deal to be honest.

15 percent deposit is a game changer.

Is your current property an Nram mortgage and are you selling property or renting it out, if you can sort a mortgage

Actual

Thrugelmir, the accounts are not settled. I am in a payment plan with the debt agencies.

Dave Ham, I have no idea what a Nram mortgage is (I am with the Halifax and it is a normal residential mortgage. I came out of a 5yr fixed deal with Halifax in December 2011 and reverted to their fixed rate).

About 1 year ago I contacted Halifax to see if I could port my mortgage across, but their rules required a credit score before they would even consider a port. I failed that credit check.

I have purposely NOT tried to get any more credit since then, since I did not want a lot of refusals on my credit file.

I will sell the current house and pay the negative equity amount from savings. It's not a massive amount of negative equity, I'll probably end up selling for just about the outstanding mortgage amount (perhaps £2-3K less).

ACG

I think Dave has summed it up pretty well.

In order to have a chance your really going to need a 15% deposit.

Have you looked at all 3 credit reports? It might be worth getting them infront of a broker to see what they can do but i think your going to need to increase your deposit really.

Actual

Thanks for your opinions guys, exactly the reason I posted here.

I have 2 out of the 3 credit reports and they pretty much say as per my initial post. All those defaults are showing with the dates I posted.

Once again, thanks for your thoughts.

Thrugelmir

Actual wrote: »

Thrugelmir, the accounts are not settled. I am in a payment plan with the debt agencies.

Then to state the obvious how can you afford the mortgage and all the costs of moving.

The ARP is damaging your credit profile. So don't consider it to be an interest free loan. The longer the ARP continues the longer before your profile will mend. This will be years not months.

Your creditors would also take a further interest in your finances I should add. Should you move.

nottoolate

Actual wrote: »

We both defaulted on our Barclays overdraft (join account) £3,747 January 2010.
I defaulted on a credit card, amount £1,849, July 2011.

those defaulted accounts will be off your credit report after 6years.

Thrugelmir wrote: »

The ARP is damaging your credit profile. So don't consider it to be an interest free loan. The longer the ARP continues the longer before your profile will mend. This will be years not months.

not on defaulted accounts. aps dont apply and everything comes off after 6 years