Mortgage with 5 year old defaults

longforthesun

I know this has been asked before and I have read many threads on gaining mortgages with poor credit but wanted to know if things have changed over the last year or so.

DH and I have around 6 defaults between us all from late 2008 early 2009 And all paid off.

We have a deposit of between 10 & 15% depending on the price of the house. Our joint salary is £40k, the bulk of this £33k is DH salary as I am only part time.

We have been looking at houses around £130,000 - £140,000.

We know we would need a whole of market broker and that the interest rate wouldn't be the best but can anyone advice if they think this is possible.

We could wait till next March when everything will be 6 years or older on our credit files but with house prices going up we were looking to buy now if it was at all possible.

Thanks in advance for any advice anyone can offer.

ACG

There will be lenders for this, the rates may not actually be that bad because of the age of them. There are one or 2 high street lenders who would consider it. Even if it doesnt pass credit scoring there are lenders who woulc consider this at 90% ltv for around 5.5% so not fantastic but by no means terrible.

Get a broker on board and you should be fine (assuming everything else is ok).

longforthesun

Thanks for this.

It gives me some hope that we may not be a lost cause after all

koneko

Hiya, how much were the defaults for? This does make quite a big difference.

I have 2 from late 2008/early 2009, one for £450 and the other for just over £9000 (both settled a couple of years ago), if the second one had been for a much smaller amount, we would have been accepted by Halifax, but as it is, we are going with Kensington.

Our 2 year fixed rate is about 1% higher than it would have been with Halifax, which I don't think is that awful considering the circumstances. After the 2 years the defaults will have dropped off and we should have more options.