Bad credit

daniejam

I have a decent job and a good sized deposit and I want to buy a house. However a few years ago I defaulted on a phone contract while I was in Australia. I paid it off and its been settled for 4 years now. I also have some missed payments in last 12 months so my credit is a rubbish.


Does a Guarantor help with this? Or does it only increase the amount of money you could borrow if you had a good credit rating??

amnblog

A decent deposit will mean a settled default is not a deal breaker.

A guarantor does not help cases with credit issues.

Engage a mortgage broker

daniejam

I am looking to book a day off to go down to my bank to see one, however I doubt a mortgage would be given to me so don't want to waste one!


My credit score is really low (like sub 500) so I might try to have to convince a parent to buy house in their name!

Nayth93

Ignore the scoring.
Banks/lenders really have no interest in experian/equifax/call credit numbers. I have heard they cannot actually see them too? Not 100% sure though.

Notice of correction explaining any missed payments if you have any reason (British Gas ruined my credit file by forgetting to inform me about owed debt but Notice of Correction seems to have helped).

Engage broker to assist and make sure they are aware of the problems first. Probably better than getting your parents to buy it... Sounds complex!

kingstreet

You need an independent broker who can access the whole market, not a bank employee who will be able to comment only on his employer's products and services.

All you'll do is get a speculative credit search which may just be wasted.

ACG

Speak to a broker. You have not given enough information to say for sure but I would be pretty confident there is an answer - it might not be with a high street lender however (which does not necessarily mean higher rates).