Mortgage - Bad Credit

david120282

Afternoon All !

I have a mortgage question...

I have previously been on a DMP and have 3 defaults showing on my Experian credit file , defaults are from February 2012.

My Equifax file looks significantly better.

All defaults were settled in full during 2012.

I am on the electoral register and have been running a post office credit card paying off the balance in full for the past 10 years.

My girlfriend is also on the electoral roll and is doing the same with her credit card and has been doing so for 18 months.

I have a £10,000 - £13,000 deposit and am looking to 'buy' a shared ownership property this year, one around the £130,000 mark and with us having a 25% share.

My income is £20,000 and my partners is £14,000. I have been in my job for 10 years and my partner has been in hers for 18 months.

We have no outstanding credit other than my girlfriends car finance which is £160 pm.

We are currently putting £1000 a month into our savings.

Do you think that there would be a lender for this?

kingstreet

Your chances will improve when the defaults are more than three year past their registration dates but the amounts involved and the shared ownership thing will have a potential impact.

When did the DMP end? How long since the AP markers stopped?

Are the defaults visible on all three versions of your credit files?

Foxy-Stoat_3

Why not wait another year and save up another £12,000-£13,000 and buy your 25% share outright?

david120282

The defaults are on all except Equifax

3 years takes it to the end of Feb.

Only Barclays out of the 3 defaults showed as AP, these stopped when the DMP was paid off in September 2012.

david120282

Foxy-Stoat wrote: »

Why not wait another year and save up another £12,000-£13,000 and buy your 25% share outright?

Another year of my current living arrangements would put a fair amount of strain on our relationship to be honest, its not easy.

kingstreet

Foxy-Stoat wrote: »

Why not wait another year and save up another £12,000-£13,000 and buy your 25% share outright?

It's very difficult to buy on shared ownership without a mortgage. All the affordability is geared towards the applicant funding as much of the purchase as they can afford.

If they can afford 25% outright, they would be expected to purchase 50% or more with a mortgage instead.

kingstreet

david120282 wrote: »

The defaults are on all except Equifax

If you have a clean Equifax file, talk to an independent broker about choosing a lender who sources data from Equifax only.

I can think of one in the SO sector, so I'm sure your broker can do the same...

david120282

kingstreet wrote: »

It's very difficult to buy on shared ownership without a mortgage. All the affordability is geared towards the applicant funding as much of the purchase as they can afford.

If they can afford 25% outright, they would be expected to purchase 50% or more with a mortgage instead.

Thats just what Homeshub said too you have to buy as much as you can afford really.

david120282

kingstreet wrote: »

If you have a clean Equifax file, talk to an independent broker about choosing a lender who sources data from Equifax only.

I can think of one in the SO sector, so I'm sure your broker can do the same...

Excellent news ! Thank you Sir !

I live near your neck of the woods at the moment by the way.

kingstreet

Yes. We're panel members of our local HTB Agent's mortgage broker panel and do a lot of shared ownership business.

The HCA want to see Government money spread as widely as possible, not 75% used on someone who can pay 25% of the purchase price outright.

The only way such a case would be permitted is if the broker and Housing Association made representations to the HCA HTB Agent that it would be impossible for a mortgage to be obtained.

kingstreet

david120282 wrote: »

Excellent news ! Thank you Sir

You're welcome. However, I am not here looking for business.

There are plenty of good brokers on the Orbit panel list if you contact them.