First time buying assistance

JCollins91

Hi all,

After some advice here if possible.

I'm 22 years old and trying to buy my first flat/apartment. Have the usual issues of a poor credit history (credit score around 750 but I have a defaulted payment of a few thousand).

The places I'm looking at are valued 80-90k; I've just under 10K as a deposit at present, but in a few months should be able to raise that to 12-13k. The monthly repayments are no issue financially (I currently earn 30K without bonuses and should be getting a 10-15 percent rise in the next few months). That defaulted payment is making it a nigh on impossible to get anywhere with this and it's so frustrating.

I feel like I'll never be able to get a mortgage. Might it be the case that I'll have to wait until I have a 20-25 percent deposit before I'll be considered? Been thinking about asking my father to buy it in his name and I'll make the payments, but I'm sure that brings its own complications.

Does anyone have any suggestions or advice?

Thank you

Keekles

JCollins91 wrote: »

I'm 22 years old and trying to buy my first flat/apartment. Have the usual issues of a poor credit history (credit score around 750 but I have a defaulted payment of a few thousand).

That is more than likely your problem with most lenders. A lot of them will consider defaults but given the value is 4 figures it will be incredibly difficult for you.

When was it settled? In simple terms, the older it is, the better.

kingstreet

Obtain all three versions of credit file and place them in front of a whole market broker. You will then be able to establish your options and add a timescale to them...

JCollins91

Thanks,

It defaulted last year. Incredibly frustrating situation. Took a phone contract out for a friend with the guise that he'd take it over (he was away at the time), then never does so and orders more phones under that contract...hence the debt. Explained to phone company in question, but they're uninterested and firmly pointing out that it was in my name. Which, I understand but really empathise with them.

If I'm to pay off the defaulted payment, will this still be a glaring black mark? Don't see much option really

kingstreet

Settling a default makes little difference.

The amount and date of registration are the big issues for mortgage lenders.

Thrugelmir

Delaying settlement of the default won't achieve anything. Has to be the number one priority. How one deals with a situation is equally as important as the raw credit data.

Keekles

Unfortunately not much of a friend.. even more unfortunate that ultimately, you did take on the responsibility and when it comes to debts and repayments; that's all that concerns the business / lender in question.

It's unlikely you'll have the default removed even if you paid the outstanding in full. There's a small chance I'm incorrect but as far as I know; it sounds like you're going to have to take a pretty significant hit here.

Kingstreet is right (as ever) in his advice to take your credit reports to a broker however. There's always a possibility that lenders will consider against one default. Your problem is the numbers / facts are in black and white and the back-story will have no bearing on the situation. Harsh reality...

JCollins91

Thanks all, suspected as much.

Just out of personal experience, if I start looking towards a 25-30 percent deposit is there perhaps a chance then as it'll be relatively low risk?

Have been in talks with an independent adviser. Contacted CIFAS as well, seeing as - in my naive opinion - taking phones out in someone's name without their say so is fraudulent, but they also disagreed.

Nothing like a firm kick in the teeth from life is there...

Thrugelmir

JCollins91 wrote: »

Have been in talks with an independent adviser. Contacted CIFAS as well, seeing as - in my naive opinion - taking phones out in someone's name without their say so is fraudulent, but they also disagreed.

Nothing like a firm kick in the teeth from life is there...

Entering into a legally binding contract on behalf of a third party is best described as foolish. There was only ever going to be one loser if anything at all went wrong. Learn and move on.

ACG

Speak to a good broker (not one in an estate agents).

Im just in the process of getting an offer on a case where a client has a £10k default from 4 months ago. It was satisfied about 6 weeks later.

Interest rate is around 6%, it needed a 15% deposit but it does not look like your a million miles away from that.