Possible to obtain a mortgage..?

mrcjevans

Hi all,

So in 2010 I had to stop work for medical reasons, a result of this was not being able to sort out my finances, had some defaults all in 2010(about £6,000), been working again for almost 2 years, me and my current girlfriend want to buy a flat together. It would be about a 40k joint income application. I have like £6,000 in my current account and my finances and payments have been perfect since I have been back at work (almost 2 years) . I do have three standing orders that I set up on these for £5 a month.

My partners finances are perfect, is there any chance we could obtain a joint mortgage? Looking to get a flat in the region of 120-£140,000

Thanks

Senior_Paper_Monitor

In AR / DMP (£5 pm towards £6,000 debt ?) ?


Deposit = Defaulted amount ?


Or am I missing something ?

HappyMJ

Settle the outstanding debt..offer a full and final settlement and the debt won't be outstanding any more and you'll have a better chance of being approved for a mortgage sooner.

mrcjevans

Yes, the defaults are a little less than £6k but you get the idea, I basically wanted to know if it's worth trying to settle them first? They don't contact me at all, I don't have ccjs and my score on experian has jumped to 798 this month. I'm just a bit worried that if I settle them then it will make a huge negative effect o my credit score?

HappyMJ

mrcjevans wrote: »

Yes, the defaults are a little less than £6k but you get the idea, I basically wanted to know if it's worth trying to settle them first? They don't contact me at all, I don't have ccjs and my score on experian has jumped to 798 this month. I'm just a bit worried that if I settle them then it will make a huge negative effect o my credit score?

Your score doesn't mean anything but settling them will have a huge positive affect on your credit worthiness. If you leave them outstanding and you do buy a property that might be enough to convince the creditors to take you to court and get a CCJ then if that is unpaid they can apply to secure the debt against the property which the mortgage company will not like. At the moment they are assuming you have nothing and taking you to court will get them no more. They aren't going to spend money chasing a debt when they might get nothing.

If they've been outstanding a long time they might take half the outstanding debt as settlement.

Senior_Paper_Monitor

..... and the deposit once you have paid the defaulted amounts (full or full and final settlement) ??

mrcjevans

HappyMJ wrote: »

Your score doesn't mean anything but settling them will have a huge positive affect on your credit worthiness. If you leave them outstanding and you do buy a property that might be enough to convince the creditors to take you to court and get a CCJ then if that is unpaid they can apply to secure the debt against the property which the mortgage company will not like. At the moment they are assuming you have nothing and taking you to court will get them no more. They aren't going to spend money chasing a debt when they might get nothing.

If they've been outstanding a long time they might take half the outstanding debt as settlement.

OK so how do I go about making an offer to them? Do I just use my report contact the companies with an offer?

Reason why I was curious because some have said that lenders look at the last 1 year or last 3 years for defaults, obviously these are all now over 4 years old. So want to make sure I'm not just throwing money away if I decide to settle them.

Senior_Paper_Monitor

mrcjevans wrote: »

So want to make sure I'm not just throwing money away if I decide to settle them.

Often referred to by underwriters as "demonstrating willingness and ability to meet credit liabilities"






.... and I repeat what I view as the first crucial questions (there are many more if you proceed): the deposit once you have paid the defaulted amounts (full or full and final settlement) ??

HappyMJ

mrcjevans wrote: »

OK so how do I go about making an offer to them? Do I just use my report contact the companies with an offer?

Reason why I was curious because some have said that lenders look at the last 1 year or last 3 years for defaults, obviously these are all now over 4 years old. So want to make sure I'm not just throwing money away if I decide to settle them.

You write to them and tell them you've met someone and come into some money and want to get these debts paid off and start again from scratch, your new partner has offered you some money to clear them in full on the condition they are cleared.

The bank will probably ignore defaults that are settled and 4 years old. They will not ignore a debt which has not been settled.

mrcjevans

Senior_Paper_Monitor wrote: »

..... and the deposit once you have paid the defaulted amounts (full or full and final settlement) ??

Sorry I don't really know what you mean by this

mrcjevans

HappyMJ wrote: »

You write to them and tell them you've met someone and come into some money and want to get these debts paid off and start again from scratch, your new partner has offered you some money to clear them in full on the condition they are cleared.

The bank will probably ignore defaults that are settled and 4 years old. They will not ignore a debt which has not been settled.

Ah thanks I see what you're saying, so do I make the offer? Or let them make me an offer?