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First time buyer - with defaults

Options
Wisdom123
Wisdom123 Posts: 26 Forumite
in Mortgages & endowments
Hi All,

Before approaching a broker for some advice I just wanted to double check if anyone can help and give me an idea of what a likely response will be.

My credit report is 'poor' - started last year and only virgin media and a credit card, although all paid off in full.

Partners credit report is poor and there are 5 defaults still not settled! Defaults in 2009, 2011 and 2012. Largest default is around £700. All being paid of by her, albeit slowly.

Joint income at the moment of £35k.

Savings for deposit of around £57k.

I would suspect absolutely no chance in hell of any acceptance until the defaults are sorted.

Would that be an accurate point of view?

Thank you for your assistance.

Kind regards
Jon

Comments

  • ACG
    ACG Posts: 24,538 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Satisfied or not, because of the size of the deposits there will be lenders for this and at fairly normal rates.

    What is worrying it that you have less than £2k in defaults and £57k in the bank and you are paying the defaults off slowly.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Wisdom123 wrote: »
    All being paid of by her, albeit slowly.

    Stating the obvious. Why slowly?
  • Wisdom123
    Wisdom123 Posts: 26 Forumite
    Well there is no need for them to be paid off slowly. Trying to make her see sense about this :). The savings are primarily mine and defaults hers.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Wisdom123 wrote: »
    Well there is no need for them to be paid off slowly. Trying to make her see sense about this :). The savings are primarily mine and defaults hers.

    How interested is she in buying a property? As her defaults impact you both.
  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    How much are you looking to purchase for?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Wisdom123
    Wisdom123 Posts: 26 Forumite
    GMS wrote: »
    How much are you looking to purchase for?

    £150,000 ish.

    Only just started looking into this and getting things sorted.
  • Kirstyb1987
    Kirstyb1987 Posts: 282 Forumite
    pay the debt off in full....no hanging around. If the defaults are all similar in size you'll still have 50k as a deposit and a massively bigger chance of approval.
  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Should be options for you. You will need to engage a broker.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Dondaddyd
    Dondaddyd Posts: 23 Forumite
    Pay your defaults off ASAP. While they sit on your account for six years, after three years they have less impact and lenders (mortgage, credit, overdraft and loans) may even overlook it completely.
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