Buying a house with bad credit rating

toughgreenmonkey

Hi

Please dont judge me.

I would like to buy a house, i have my deposit secured but....

18 months ago when i was expecting my first baby I was financially worried as i had a credit card and a loan outstanding and the repayments together were quite high and would have been impossible for me on Statutory Maternity Pay and so i spoke to a debt management plan who falsely advised me and took on my debt etc. I didn't realise this would lead to defaults etc as previously my credit rating was really good. They also didn't tell me that it would affect my chances etc....foolishly at 4 months pregnant i believed them

So 18 months later i am in this debt management plan (which i'm pretty sure doesn't show up on my credit file) but the defaults do, i have 2 of them.

I have a deposit and i want to buy i house but i am being declined. I earn a good salary and could easily afford the mortgage payments.

What is the best way for me to get a mortgage? Are there lenders that would consider me? If so who?

And yes, i could pay the debt off but considering the amount of time taken to save it i need to know whether they is a route around as doing this would keep me in limbo for at least the next 6-7 years

jamie11

Sorry, only yourself to blame. Keep saving, in six years time all the defaults will go away and you'll have a nice big deposit.

toughgreenmonkey

jamie11 wrote: »

Sorry, only yourself to blame. Keep saving, in six years time all the defaults will go away and you'll have a nice big deposit.

!!!! off, no need to be rude to people

Shiloe

toughgreenmonkey wrote: »

!!!! off, no need to be rude to people

lmfao ... and !!!! off is in no way rude :rotfl:

redcard

toughgreenmonkey wrote: »

!!!! off, no need to be rude to people

You screwed up. Be angry at yourself.

And don't blame it on your pregnancy!

esj13

6 Years and your defaults will be history. Just keep saving until then. The bigger your deposit the better your chances and also a shorter term mortgage or lower monthly payments.
Every cloud and all that.

Jason_Bourne_2

Depends on the value and the dates of the defaults. There are some lenders who would lend to you with defaults that aren't satisfied.

You would probably need 20% deposit and pass affordability for them.

Expect to pay around 6% and have a large product fee. A broker will be required if it's possible.

Lenders like GE money may touch you but depends on the whole picture.

All 3 credit files & no secrets to a broker. Good luck.

Kynthia

When you have at least 10 to 15% deposit saved plus enough savings to pay for all buying costs, take copies of all three credit agency £2 each) to a reputable independent mortgage broker. As long as there's been no other defaults or problems and everything is paid off they might be able to tell you which lenders would consider you.


The Mortgages & Endowments section of the MSE forum might give you better advice if you give them specific details of your income, savings and defaults.

ognum

toughgreenmonkey wrote: »

Hi

Please dont judge me.

I would like to buy a house, i have my deposit secured but....

18 months ago when i was expecting my first baby I was financially worried as i had a credit card and a loan outstanding and the repayments together were quite high and would have been impossible for me on Statutory Maternity Pay and so i spoke to a debt management plan who falsely advised me and took on my debt etc. I didn't realise this would lead to defaults etc as previously my credit rating was really good. They also didn't tell me that it would affect my chances etc....foolishly at 4 months pregnant i believed them

So 18 months later i am in this debt management plan (which i'm pretty sure doesn't show up on my credit file) but the defaults do, i have 2 of them.

I have a deposit and i want to buy i house but i am being declined. I earn a good salary and could easily afford the mortgage payments.

What is the best way for me to get a mortgage? Are there lenders that would consider me? If so who?

And yes, i could pay the debt off but considering the amount of time taken to save it i need to know whether they is a route around as doing this would keep me in limbo for at least the next 6-7 years

OP your post start with 'please don't judge me'. You must know having written this that people would do just that!

I am afraid I just don't understand why you don't pay your debts off? Why would a lender choose to lend to you when clearly you haven't managed your finances well in the recent past.

Why should someone or a company suffer your debt when you have money in savings, sorry I just don't get it.

You may well have to wait until the defaults are struck from your file, should it be like this, well IMO it probably should. You need to demonstrate you can manage your money.

Sorry if this is harsh and not what you want to hear, good luck for the future.

Road_Hog

jamie11 wrote: »

Sorry, only yourself to blame.

Crawl back under the rock, from where you came from.

Road_Hog

redcard wrote: »

You screwed up. Be angry at yourself.

And don't blame it on your pregnancy!

Another saddo. Small willy syndrome.