resolving bad credit to get a mortgage

monkeymoos · 17 November 2014 at 4:17PM

So in 2012 I got into a little bit of debt, which I was struggling to repay, being young and depressed about the spiralling debt, I thought I would try and use payday loans to manage it... BIG mistake!!! (duh!)

Anyways, with the help of my bf, the debt is almost cleared, albeit with a few defaults along the way. He is desperate for us to buy a house next year, he has around 100k deposit, and we would hopefully be looking at up to 300k property. What are my chances of being approved for this, or will we have to wait longer?

[Deleted User] · 17 November 2014 at 4:29PM

Well, your defaults and PDLs certainly won't help, but it depends on the whole picture.

monkeymoos · 17 November 2014 at 4:42PM

yeah, certainly not something I'm proud of, and whilst I know they will be a hindrance, I have no idea how long I should wait?

bargainbetty · 17 November 2014 at 4:52PM

Defaults will show up for six years. Depending on size and if they are cleared etc, you may be lucky and they have a reduced affect. However, PDLs and defaults will not look good for a while. You may find that you get a mortgage on less favourable terms until they are a few years old.

[Deleted User] · 17 November 2014 at 4:52PM

I would see a broker to go through the full details of your application. They will be able to advise where, if anywhere, to place it.

monkeymoos · 17 November 2014 at 5:02PM

We are planning on going through a broker as my bf is self employed, but for obvious reasons, I want to wait a while for the dust to settle! Do you think 6/8 months would be too early to go to a broker? Should I give it more time?