Help to Buy Mortgages and missed payments

Jambo5

Hi guys,

Basically this HTB scheme seems a good deal.
But I'm reading that your credit file has to be squeaky clean.

As it stands;

I have 1 x defaults which falls off in Jan 15
And 1 x CCJ which falls off July 15.

I am aware that when they go that's it there gone but I have up to 5 late/missed payments on one account that has been paid in full and satisfied since June 2010.

Me and wife have combined wages off 44k and her credit is just about as good as it gets.

So as off Jully 2015 I will have lots and lots of upt o date and green accounts....no adverse credit but.......

●22 pay day loans (last one taking out may 2012)
●and them 5 missed/late payments which by July will be 5 years old.

can anyone help?

What effect will these pay day loans have on me as by time of application the last one I had will be over 3 years ago?

What effect does missed/late payments have when they are over 5 years old?

I have been debt free since June 2010 and all accounts have been up to date since then. I am on electoral roll and have a credit card with a limit of 1500 and has been raised twice since Iv had it.

What's my chances of getting a HTB mortgage next summer?
Or are we waiting another year for these missed payments to fall off just like the defaults and the ccj?

As I am reading around I see that missed payments are looking just as much a thorn in my !!!! as the defaults were?

Thanks guys hope you can help me;)

jacobtheamish

Which Help to Buy? Newbuild 20% equity loan or secondhand Mortgage guarantee?

Jambo5

Either really just want on this property ladder....but its so hard especially when I was young and daft and made mistakes

Dave_Ham

Chances are (subject to the details) you may achieve a non new build 95% now and certainly the equity loan help to buy in the Summer and maybe even now

Get your credit files to a broker and talk through options formally

Good luck

Jambo5

Is so hope you are write Dave Ham......
It will be next summer when we apply.

Has any body been in similar situation and been successful?

Thrugelmir

Forget your previous history. Focus on saving for the deposit. As it's this that will ultimately open doors.

Jambo5

Well we probs only have 12k deposit by then, I just hope thats enough as waiting 6 years to redeem myself has been painstaking!

jacobtheamish

Help to Buy 1 - Equity Loan of up to 20% on new build properties only - Even with little scrapes on the credit file, a mortgage is still possible.

Help to Buy 2 - Mortgage Guarantee - Even a minor blip on a credit file will throw this out with most lenders. Aldermore are probably the most flexible but there rates reflect that.

Until you know what property you are looking to buy, and without view of your credit file it is really not possible to say. As Thrugelmir said save your deposit and if you do decide to buy secondhand try and save enough for 15% deposit. You'll then not need H2B MG with its strict credit scrutinising and crap rates

Jambo5

Probably looking for a house around 110k or a one for 90k to fix up.....
I have posted very similar post in different forums and most people say go to a mortgage broker!

For some reason and Im not sure why....a high street lendersl appeals more to me, maybe its this bug I now have about my credit rating and maybe think when I get high street I cracked it.

Can anybody tell me more about brokers and if they are better?

Also maybe its the high street lenders that offer HTB.....
which by the sounds of it have poor rates anyway?

kingstreet

A broker will place you with the best lender possible, based on your circumstances. If it can be placed on the high street, it will be.

As I said previously, if you don't like what you are offered, seek alternative advice elsewhere.

Yorkie1

Jambo5 wrote: »

Probably looking for a house around 110k or a one for 90k to fix up.....
I have posted very similar post in different forums and most people say go to a mortgage broker!

For some reason and Im not sure why....a high street lendersl appeals more to me, maybe its this bug I now have about my credit rating and maybe think when I get high street I cracked it.

Can anybody tell me more about brokers and if they are better?

Also maybe its the high street lenders that offer HTB.....
which by the sounds of it have poor rates anyway?

Your circumstances are not straightforward, and some lenders will be less happy than others to lend to you because of this.

A broker will know which lenders to avoid. You could wreck your already fragile credit score with ill-judged speculative applications to high street lenders direct. Too many declined applications and you risk a) losing the property, and b) getting to the point where the potential lenders now say no because of the number of declines.

A broker may well be able to find you a mortgage with a high street firm, without risking declines.