best time to apply for a mortgage - bad credit history

whittlewhittle

Hi
I am looking for some advise on when will the best time to reapply for a mortgage.
My credit history is good.
My husbands is not so good.
1. He missed several mortgage payments from 2010 - 2012 not every month but quite a significant number so he had to take out some equity from the house to repay this debt. it shows on his credit report as missed payments. Since May 2012 to date he has paid in full on time, every time.
2. he had a current account default now satisfied in 2013. £1300
3. he has a loan default from 2009 still outstanding. £15000

Do we need to wait till all of the above is off his credit report i.e 6 years from 2013 > 2019.
Or just till the mortgage missed payments are no longer showing > 2018? Or will a main stream lender not look beyond 3 or 4 years good history? any help greatfully recieved.

Thrugelmir

whittlewhittle wrote: »

3. he has a loan default from 2009 still outstanding. £15000

Amongst all the issues this stands out. What action is the creditor taking to recover the debt?

ACG

If your looking to do this with a 5-10% deposit then I think your going to have to wait until the late mortgage payments drop off your credit report.

If you have say 25% deposit then it could be possible now or within a year or so.

I think you need to get your 3 credit reports down to a broker if you do have a sizeable deposit.

A £15,000 default is not going to look great and its a bit worrying that you are not paying this off but actually looking for more credit but thats down for the underwriters to assess.

whittlewhittle

ok thank you both.

The defaulted loan is a grey area, my husband has no recollection of taking out this loan and is in conversation with the lender regarding this. We only became aware of this loan after downloading his credit report last week, he has no other documentation on the loan hence why it remains unpaid.
We have 10% deposit only.

ACG

With the loan and the missed mortgage payments I dont think 10% will be enough.

Assuming he did not take the loan out and its a mistake then I still think this will be a tough ask. If you can get to 15% then there may be a lender or 2 who would look at it but rates are unlikely to be great - I would say 6-7%.

laurieballard999

You know whether you took out a 15k loan, its hardly something you could forget about.

Assuming its a mistake and he did not take out a loan then he will be able to get this removed after following the appropriate procedure.

I would get this removed as a first step.

Points 1 and 2 will likely mean he has very few lenders that will go anywhere near him and as mentioned, you will likely need a sizeable deposit to even be considered.

2012 is only 2 years ago and missed mortgage payments are likely to bring up red flags with any lender.

You/He have to be realistic and take some advice from a good broker but don't get your hopes up too much.

Thrugelmir

laurieballard999 wrote: »

You know whether you took out a 15k loan, its hardly something you could forget about.

Hoping it might just disappear and be written off is a very long shot.