Buying a house with bad credit rating

freeisgood

Talk about coming down on people like a ton of bricks!

jayss

If you've managed to save a deposit are the defaults now satisfied?

mildredalien

As others have said there are lenders that may consider you:
- if you have satisfied the defaults
- if you have a relatively large deposit
- if you meet affordability criteria
- if you have no other adverse credit

The more time that passes and the nearer to the 6 year mark you get the easier it may be. You'll probably have to pay a premium though, so it might be worth waiting another few years.

If it makes you feel any better I'm in a similar position due to a stupid mistake on my part - got a default, even when I could mostly afford repayments, after I moved and didn't make sure that the address for a credit card had changed. As well as being sometimes too skint, I was a bit lazy about repayments back then and sometimes waited for a reminder - and when one didn't come I forgot about it. Just over 4 years later and my credit rating is still a bit rubbish, I'm waiting for the 6 year mark to eventually buy. Live and learn as they say, I'm now a million times more proactive and sensible about my money!

kingstreet

toughgreenmonkey wrote: »

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

Debt management plan or not, if you did not meet your commitments in full, you would have no alternative but to arrange your own reduced payment plan, or have someone do it for you.

The end result would still have been defaults and arrangement to pay markers.

Your credit situation is due to non, or reduced payments, not because of advice from elsewhere.

As as has already been mentioned order all three credit files so a good whole market broker can see what is visible on each and build your deposit as much as possible.

toughgreenmonkey

Thank you to those of you that have offered some sound advise. I will get copies of all 3 files and find a good mortgage broker to speak to.

I have 15% deposit saved and can meet affordability criteria but I agree I may need to wait a few more years for my credit file to pick up.

For all of those offering negative advise I genuinely hope that you never find yourself in a situation (financial or otherwise) where life isn't a bed of roses......

toughgreenmonkey

Are there any mortgage companies now a days that look at individual circumstances in addition to credit files etc?

AdrianC

toughgreenmonkey wrote: »

I have 15% deposit saved... but I agree I may need to wait a few more years for my credit file to pick up.

Given that you've saved enough for a 15% deposit, can you confirm that you have indeed paid off the defaults? If so, then why are you still within the debt management plan?

If they are satisfied, then lenders will be much more likely to lend than if those defaults are still outstanding.

Fishingtime

If you have such a big deposit then why not pay off your debts first?
Other wise you are just getting deeper into debt and you say you can afford the mortgage repayments now.
But what happens if things goes t**s up for you in the future

Jason_Bourne_2

toughgreenmonkey wrote: »

Are there any mortgage companies now a days that look at individual circumstances in addition to credit files etc?

Plenty do.

You are best to take your files to a broker. He should know which lenders fit your circumstances before making any applications.


Settle the defaults then save, save, save.

ValHaller

toughgreenmonkey wrote: »

Thank you to those of you that have offered some sound advise. I will get copies of all 3 files and find a good mortgage broker to speak to.

I have 15% deposit saved and can meet affordability criteria but I agree I may need to wait a few more years for my credit file to pick up.

For all of those offering negative advise I genuinely hope that you never find yourself in a situation (financial or otherwise) where life isn't a bed of roses......

15% deposit saved and in a DMP? Did you have savings when you went into the DMP?