Mortgage after defaults

Stuh

Hi Gang,

This is mainly directed at the mortgage advisors on the forum please, i have 2 defaults that will drop off my file in June 2014 and am currently negotiating f&f settlements with the final 5 of my creditors, my questions are will the partial settlements hurt my application and also how long do i have to wait until the defaults disappear before i can apply please? Any advice would be appreciated...many thanks:beer:

ACG

What is the purchase price?
What is the deposit?
Im assuming defaults are dated 2008ish?
Is there anything since then? Any arrangement to pay markers, late payments etc?

Stuh

I am looking for houses around £100K mark i can access £5K as a deposit with the help to buy scheme, (my salary is £21K) defaults are June 2008 and nothing else on the file, except a few partially settled accounts in 2013...there is currently ap markers on a few of the accounts and no late payments at all since early 2012 (only a few 1,2 ) before that tbh! I am with payplan but will be self managed next month with a view to settling all via partial payments v soon hope that helps thanks!

amnblog

Payplan will be the issue here.

Get all of that behind you (and a larger deposit) before you attempt to buy anywhere.

ACG

I dont think this will go through on 2 counts:
The payment plan is there and ongoing, that means there is no space between the bad marks on your account and your application. If you have £5k you need to clear the payment plans and that will then mean the bad markers stop and time will help to improve your credit score... but i dont think you will be in a position to buy with a 5-10% deposit any time soon.

The other issue is affordability, £21k x 4 = £84k. If you are using help to buy then i dont think you are going to get much beyond that. But i think that is a smaller issue. the biggest one is the credit report.

As a broker i only get paid if i get a mortgage offer. I tend to work a lot with adverse and i would not take this on as i think i would do a lot of work and not get paid.

Are the ap markers showing on all 3 credit reports?

Stuh

thanks for your time on this matter, the £5K is from a family member and will be for a deposit only, the other monies are from another family member to clear this mess off asap, i am going to ditch payplan next month and deal with all creditors direct, my noddle report is not showing the ap markers but the last time i had a experian one in 2013 they were there i will apply again, looks like i need more time to repair things, pity....!

amnblog

You are a long way from being ready to buy.

Thrugelmir

F&F settlements will do you no favours at all. Why would a lender wish to advance you money when you don't repay what your borrowed previously.

Stuh

amnblog wrote: »

You are a long way from being ready to buy.

How long would you think please are we talking months or years?? I am focused on sorting everything asap......!

Yes i understand the best case scenario would be to settle all in full but at my current rate that would take 3-4 years sadly.