Any hope of mortgage? 2 historical defaults

Stitchingtime

I used to be a regular poster years ago, but lost my details etc.

Anyway, my husband and I currently rent, but our landlord has advised he wants to sell once our lease comes to an end in December. He has offered to sell it to us at just below market value (we get it for £100K rather than £105K), and we were really hopeful.

However, I've just been speaking to a broker who says that I have no hope of a mainstream lender, and I wanted to check if any of the helpful brokers on here could confirm this, or give me some advice.

We have a household income of £34,000 and will have a £10,000 deposit. The money is only being given to us on the condition that it is for a deposit as it is currently held in trust by my father-in-law (represents an inheritance). A declaration is no problem stating it is a gift and not to be repaid.

I have been supporting 2 houses for the last 2.5 years while trying to sell one of them. This meant that I couldn’t tackle historical debt from a financially abusive ex-partner. At the moment I have credit limits of £3,500 with £3,000 currently used. This will be down a further £400 at the start of September as I can now make serious inroads into repaying it and will be completely debt free in a few months.

I have now checked my credit reports, and the negatives are that I am close to my credit limit, which I know is a problem, but being dealt with, and that I have 2 defaults, one for £90 which is outstanding from 2009 and one from March 2011 which is settled in full for £73. These were oversights due to my circumstances at the time (actually didn't know about the £90 one, but now I do I will clear that one this week.)

The other negative is that back in 2010 and 2011, I had a few payday loans, back when it wasn't immediately known that these ruined your credit rather than helped it. They were all operated correctly, repaid in full etc and no late payments.

My husband has never had any debt, only a current account which is always in credit. I have a few other satisfied loans etc.

Honest opinions please, we love the flat we are in, but accept that it could be difficult due to my history.

Thanks for getting this far

ACG

There will definitely be 1 lender for this, maybe a couple more.

One for a broker though as it will depend on the property and the rest of the case.

Stitchingtime

ACG wrote: »

There will definitely be 1 lender for this, maybe a couple more.

One for a broker though as it will depend on the property and the rest of the case.

Thanks for this, so perhaps I should try a different broker to the one I've been talking to? Will see if anyone else I know can recommend a local one, I got the one I was talking to from a friend.

Wh05apk

Small defaults that old should not be a problem, funny enough I am just dealing with a case now with 2 defaults - £30 & £71 from 2009, but at 95% (might be borderline, but the lender thinks should be ok?

Stitchingtime

Wh05apk wrote: »

Small defaults that old should not be a problem, funny enough I am just dealing with a case now with 2 defaults - £30 & £71 from 2009, but at 95% (might be borderline, but the lender thinks should be ok?

That's hopeful then. I've dropped a couple of brokers a message, so hopefully can talk to them during the week. I'd be interested to know how you get on.

What do you think the impact of the payday loans in 2011 will be?

Mortgage_Mark_2

I'd be pretty confident of getting this one through, I'd find another broker sharpish based on what he/she has told you.

ACG

Has your current broker given any reason as to why he cant place it?

AS you can see on here, 3 brokers think it is possible to place this, so for yours to say otherwise means he either knows something we dont or he/she is not aware of what we are.

Stitchingtime

He said that the combination of high credit use, historical payday loans and the defaults meant no one would touch it.

I've not hidden anything on here, no point asking an opinion if I don't give all the facts as accurately as I can. I do live in a very wealthy part of the country, so maybe he isn't used to this end of the market. I have much more hope thanks to you all.

ACG

Haha... unlike me being from manchester where everyone lives on payday loans, has a football team worth of kids and lives on benefits like on shameless? (Only messing).

It could be, I suppose in the same way that if a HNW client came to me I would be starting my research from scratch, bad credit I do day in day out so already have a good idea of where to start.

Stitchingtime

Just realised how that sounded!!! Sorry, it made sense in my head.

ACG

Im only joking dont worry.

Its probably true though, you adapt to your local market and if your local market tends to pick up more of one type of client than another you get to know which lenders are best for those people - whether its HNW, adverse, families, singles etc etc.