Buying a house with bad credit rating

ValHaller

toughgreenmonkey wrote: »

Well done to you for such an articulate response...... I can see by the number of posts you have made on here that perhaps 'life' or even 'hobbies' are alien words to yourself so why not go investigate their meaning and leave those of us with genuine questions on this forum to receive genuine replies.

Well, bluntly, you are deluding yourself if you think you have savings. It doesn't come more genuine than that.

Tigsteroonie

I'm sure that however is managing your DMP would be interested to hear that your income has been sufficient for you to save money - I think they'd like to see that money going into the DMP.

This has to be a weekend wind-up, no?

paye

About three years ago I had one default which was satisfied totalling £800 but with six months to go before it dropped off. I tried my luck and applied for A mortgage application which got accepted by the post office.

At the end of the day if the defaults are satisfied for long period of time you may have a chance. But if they were satisfied for a short period of time then I'm afraid you won't have a chance. I hope I am wrong and you find a lender that will lend to you but you need to ensure you pay off your debts before applying for mortgage.

ethank

Make an offer to all of your debtors to repay in full and final settlement if they agree to remove the default from your file. Make sure they confirm they will do so in writing before doing so. Repay your debts, and then start saving for your house.

Guest101

ethank wrote: »

Make an offer to all of your debtors to repay in full and final settlement if they agree to remove the default from your file. Make sure they confirm they will do so in writing before doing so. Repay your debts, and then start saving for your house.

Might be wrong but once it's reported I think it's very difficult to remove, ie if it was a mistake

AdrianC

toughgreenmonkey wrote: »

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

Great. You've saved enough to pay one of the loans off in full, and reduce the amount you owe on the other.

You've clearly done enough to your budget to save substantially in a short period of time, so you can surely continue to stick to that budget, and continue to save?

So why not do that? Pay one off. Pay the other off asap. THEN, and only then - once you no longer owe money to those lenders who you've already defaulted on - that's when you can start to actually count yourself as having savings.

At the moment, you still _owe_ money. Your debts to lenders are greater than the assets you call your savings. The fact you're clearly being less than honest to the debt managers is not in your credit, either.

toughgreenmonkey

AdrianC wrote: »

Great. You've saved enough to pay one of the loans off in full, and reduce the amount you owe on the other.

You've clearly done enough to your budget to save substantially in a short period of time, so you can surely continue to stick to that budget, and continue to save?

So why not do that? Pay one off. Pay the other off asap. THEN, and only then - once you no longer owe money to those lenders who you've already defaulted on - that's when you can start to actually count yourself as having savings.

At the moment, you still _owe_ money. Your debts to lenders are greater than the assets you call your savings. The fact you're clearly being less than honest to the debt managers is not in your credit, either.

I have the letter on the way to pay one of them off completely I will call the other one when they're open tomorrow to discuss options

jayss

You're not meant to take on more credit when on a dmp.
With the defaults not satisfied its unlikely a lender will see you as a good candidate.

ethank

Guest101 wrote: »

Might be wrong but once it's reported I think it's very difficult to remove, ie if it was a mistake

I actually did this with Lloyds TSB and Orange - so I know it works.

I had no right to request it, but I told the debt collection agencies/providers that I would be borrowing the money to repay the defaults, and therefore I would only repay in full and final settlement if the adverse information was removed. If they did not wish to do this, then I would not borrow the money and would continue on the original payment plan.

They are businesses after all, and they took a pragmatic view - they wanted the debt repaid, and were prepared to remove the data.

toughgreenmonkey

Ethank did you go direct to Lloyd's and Orange or had the debt been passed on?