First time buyer, default and feeling like theres no answe

browneyes121

Hi,

This is my first time I have posted asking a question like this, after reading this board for many months.
I am after some advice, from people who really know or who have been in my situation.

My husband and I would like to buy a house. We are looking at having a 10-15k deposit, and are thinking we would like a house around 150-170k.

I have a settled default. Its literally eating me up inside now. I feel like I have ruined our lives, over such a stupid thing. The default is from Jan 2011, with capital one and for £989. I missed two payments with them when I had our daughter (no excuses, just letting you know that this was not a normal thing). My credit limit was £800 but had gone over due to the late payment fees and over limit fees. I did stick my head in the sand in nov and dec, but in Jan for the new year I decided to man up and tang them, tro be told it had defaulted and there was nothing I could do.
I set up a payment plan with the debt company and paid it off by Oct 2011.

Other than this, my credit history is good. No other defaults or late payments.
My husbands is better, as he has a credit card and a loan, both which are always paid. The loan will be cleared in three months and the credit card has a balance of around £500 on it. He has no defaults and no late or missed payments.

I feel so sick at the thought that we may not be able to own our own home. My daughter starts school in sept 2015 and I'm desperate to have us in a house and settled so she can start school and not have to worry about being moved around.

My husband earns £35k a year and I earn £10k a year.

Please can anyone give me any advice on where would be the best places to try or if this is even possible? Has anyone been in this situation? I feel like such a failure to my husband and children :-(

welliesrgreat

Don't be silly, we all make mistakes. You need to get some advice from a financial advisor or more specifically a mortgage broker. There are banks willing to lend but you may need a lower LTV and more deposit. Others will be better placed to advise on specifics I just wanted to reassure you.

FTB_Doll

Get a broker dont panic but dont blindly apply xx

ACG

Payment plan and a low deposit, this is going to be difficult with that deposit.

I think your going to need a 15% deposit to get this through. Get your credit reports down to a good broker and let them see as it might not appear as bad as it sounds on those reports.

Thrugelmir

Can you build your deposit up over the next 12 months?

At least you faced the music. That's the hardest part. If you channel your energies into something you want , amazing what can be achieved.

browneyes121

Thanks for your advice everyone.

Can I ask, does anyone know if my husband would be better off applying for a mortgage on his own? Is that even possible when we're married?

Dave_Ham

As stated, you would be better armed with your Experian, Equifax and Call Credit files although I suspect this will be either 15% deposit or in sole name for your Husband.

Be very careful on the second option and do take advice. There are many a pitfall including some lenders not liking this and specifically ownership rights and where the deposit is coming from.

Get some advice, crude numbers suggests he earns enough.

Experian_company_representative

Check the qualifying criteria before applying anywhere - many lenders are clear about the sort of customers they're looking for, including whether people with CCJs, defaults etc needn't bother - or better still use a good mortgage broker. I'm sure you'll find a lender that wants your custom.

James