Buying a house with bad credit rating

toughgreenmonkey

No I didn't otherwise I wouldnt have done it

redcard

Road_Hog wrote: »

Another saddo. Small willy syndrome.

You're not projecting, are you?

AdrianC

ValHaller wrote: »

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

toughgreenmonkey wrote: »

No I didn't otherwise I wouldnt have done it

You still haven't answered whether you have now settled those defaults and exited the plan. Please can you answer that question?

If you haven't done so, then put yourself in the position of a lender. Would you want to lend a substantial amount of money to somebody with such an apparently flagrant attitude to repaying money they owe? Somebody who would rather save money and then borrow a huge amount extra, than repay the money they already owe?

redcard

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.

You only meet affordability criteria because you're not paying off your debts .

toughgreenmonkey

Forgive my ignorance but is satisfying a default paying it off in full? If so no I haven't don't this, I could pay one of the two off in full and probably reduce the outstanding amount on the other one but will reducing the outstanding amount do anything for me?

I also don't quite understand what the default is? Is it the whole amount outstanding or is it the defaulted payment value I.e. If you missed X number of payments on a loan is that the defaulted but or is it the whole loan?

And yes, I can completely see a lenders perspective but as the majority of lenders only see a credit score and don't actually know the factors they wouldn't necessarily think anything as the computer would make the decision for them

toughgreenmonkey

redcard wrote: »

You only meet affordability criteria because you're not paying off your debts .

That's where you're wrong, I am paying off my debts otherwise I would probably have a ccj but I don't, I pay them every month

toughgreenmonkey

AdrianC wrote: »

You still haven't answered whether you have now settled those defaults and exited the plan. Please can you answer that question?

If you haven't done so, then put yourself in the position of a lender. Would you want to lend a substantial amount of money to somebody with such an apparently flagrant attitude to repaying money they owe? Somebody who would rather save money and then borrow a huge amount extra, than repay the money they already owe?

If you owe money on a dmp you can save up to 60% of the outstanding amount by paying off in full instead of chipping away hence in some aspects it is better to save enough to clear one in full rather than paying a lot more over a longer period of time

kingstreet

A default is registered by the lender when you fail to make three or more payments on a credit agreement. The amount owing at the time is the amount of the default.

Once the outstanding debt is settled, the account is marked as "satisfied" and the debt disappears from your credit file, repaid or not, six years from the date of registration.

Do not repay these defaults in full, or part, until you have obtained all three versions of your credit file and put them in front of a broker. Reducing your deposit, when a lender can clearly see the default, can be counter-productive.

toughgreenmonkey

kingstreet wrote: »

A default is registered by the lender when you fail to make three or more payments on a credit agreement. The amount owing at the time is the amount of the default.

Once the outstanding debt is settled, the account is marked as "satisfied" and the debt disappears from your credit file, repaid or not, six years from the date of registration.

Do not repay these defaults in full, or part, until you have obtained all three versions of your credit file and put them in front of a broker. Reducing your deposit, when a lender can clearly see the default, can be counter-productive.

Thank you! Finally someone can see where I'm coming from! It's not that I don't wish to pay these off it's just I don't know what is the best decision to make and I am struggling to find someone who can best advise me!

When you say 'amount owing at that time' do you mean 3x whatever payment was or full outstanding amount?

When you say 3 copies of my credit file - from who? Experian, Equifax - I thought were one and the same!? And who else?

Thank you

toughgreenmonkey

Scrootum wrote: »

Nobody will lend you money whilst you are still on a DMP.
You need to pay your existing creditors before even considering getting a mortgage.

Would you savings cover this?

The dmp doesn't show on my credit file (or at least I sure as he'll can't see it) but the default does and that's what's making my score so bad

And savings would cover the 2 defaults (I think) but not the entire dmp, there is one other thing on there which I couldn't cover in one shot