Mortgage with defaults

wannabe1

Good afternoon,

Would appreciate hearing from anyone with experience of getting a mortgage despite defaults.

Our financial situation dipped dramatically after losing several key clients in a space of a month. I used to work with my partner as we were both self-employed in the same industry, so the lose effected us both.

We had a few large loans that we made arrangements to pay as we were basically unemployed and lived on our savings until they run out.

We are both now in full-time employment (earning approx £60K), after moving to a larger city to find work a couple of years ago.

Now we are ready to buy a house but some of these loans have recently shown up as defaults, even though we have stuck to the agreed arrangements. There are two defaults dating from 2011 (one fully paid and one soon to be paid off of £990). I recently paid a third one off (my final payment was £2800 to clear it in full) defaulted 5 1/2 years ago during another self-employed crisis.

We recently inherited £100,00 (the deposit) and are looking at a house worth £230,00. We haven't built up much savings as we are using all excess funds to clear debts and help my grown-up children.

Would the high deposit we are able to pay help us to secure the mortgage despite the defaults? Because of our ages we are looking for a 15 year mortgage.

Any advice would be much appreciated.

amnblog

This lending is placeable.

OneEngland

The value of the defaults and the length of time will work in your favour, but you are unlikely to find a lender on the high street that will help. You would be best speaking to a mortgage broker who specialises in sub prime/adverse lending. You should not have a problem in securing a mortgage but you will pay a higher rate than the 'norm'
I don't specialise in adverse, so you may be better waiting for a response from a more experienced forum member but thought I'd throw in my 2 pence.

Thrugelmir

Use the inheritance to sort yourselves out financially. Then allow a period of blue sky. An inheritance doesn't make you a better borrower. Time does.

Dave_Ham

This is certainly achievable although it is likely the more experienced the broker, the more competitive the terms agreed are.

Engage a broker and would expect a solution

Good luck