First Time Buyer with 25k deposit and a default on account

ryan87

Hi guys iv been reading a lot on here over the years so helpfull

I signed up to get a few questions specifically answered if you could help me in any way would be great.

Finally settled 2 Default on my account 1 was 1.5k and 1 was 7k and some change both was with NatWest and i always kept a payment plan with them but was under what we originally agreed.
The default have been there since 10/2012 so just over 2 years old now

I settled these this week In Full as i have intentions of apply for a mortgage soon as they show settled on my credit file end of this month or next

My score is 810 but i know this dont mean much at all these days

I also have around 25k for a deposit and the houses im looking at are 100k so this would give me a 75% LTV

I could go for a cheaper house to bring the LTV to under 70%

But my main question is based of haven't them debts settled and only needing 70-75% LTV with a nice deposit will there be anyone out there who would give me a mortgage

Im also self employed with who earns over 30k a year

Thing is i cant wait another 3 years to move out till the defaults drop off worst case is i have to rent and waste my money for 3 years which is far from ideal :[

Hany help would be great many thanks for your time

kingstreet

If the default was registered less than three years ago, I see you struggling to get a high street rate, unless it doesn't appear on one of your credit files and your broker can place it with a lender who won't see it.

If you haven't already done so, obtain all three versions of your credit file (yes, they are different) and put them in front of a good independent broker. If they can't find a high street solution, they should be able to provide options on near-prime type products due to the loan to value.

amnblog

If you want to buy now this should be placeable it is not a high street case.

Engage a good broker with experience of adverse cases.

Expect to pay a broker fee.

ryan87

Thanks guys that is good news really thanks

I would wait 3 years if i could but i would then be 30 and still at home which is far from ideal now i have the deposit i need to start my own life

Ya im going to get all 3 credit reports now soon as the default is marked as settled where can i find the other 2 i have the Experian one ?

Also lets say i do get a mortgage based on a 70% LTV with a slightly higher interest rate than would normally expect would it be a good idea to remorage in 3-4 years time to get a lower interest rate.

Thanks

kingstreet

Equifax

https://www.econsumer.equifax.co.uk/consumer/uk/order.ehtml?prod_cd=UKSCR

CallCredit

https://www.noddle.co.uk

If the default isn't visible on one of them, waiting for it to show as satisfied is going to be a waste of time!

ryan87

Good thinking king street thanks i will check them now :]

Also because as i have just settled the defaults would the mortgage company's care when they where settled or do they just look at when default was placed on account

Thanks agine

kingstreet

It's mostly about the amount of the default and when registered.

The satisfaction date can be of secondary importance.

ryan87

I see thanks i just checked Equifax and CallCredit and nothing is hidden so all accounts have the defaults on there.

Is it just a case of waiting for them to get settled now and trying to get a mortgage with settled defaults on the account

They where registered in 31/10/2012 so are only just over 2 years old now so wont drop off the account till 2018 :[ which is sad i don't even mind paying a slightly higher interest till this time if its a possibility

Iv seen some lenders do allow 2 defaults in 24 month period what kinda rates do these guys offer as i cant seem to find anything on their sites Precise Mortgages and Simply Adverse are these companys safe to use ?

I will try thro a broker tho to see if they can help in my situation as hopefully the LTV of 70% and 30k a year wage will show them i can afford it and have sorted myself out since then

Kapaxiana

On personal experience speak to MANY independent brokers. I was in a similar situation, had a 20% (gifted) deposit and 3 settled defaults the most recent from 16 months ago although this most recent was for the most stupid reason of forgetting to pay a bill before going on holiday then coming home to a letter from a collection agency which I paid straight away. Anyway I can not tell you how many times I put the phone down in tears after hearing nos after nos and being told that it was impossible and that I had to wait until the defaults were older at least to try.
We we turned down by two lenders and one broker got a an AIP with Kensington which was not great but we jumped to it. However I did not give up and while the ball was rolling with the kensington application once we put an offer on a property I kept speaking to other (there were many) brokers until a colleague recommended me her broker at first came back with nothing but kept trying and managed to liaise with a high street lender and who got a us mortgate with Natwest. So in 7 months I basically went to hell and back but it was so worth not giving up as we are now about to exchange and should be moving in the next couple of weeks.
I think the main thing is to find that one broker with the right connections.
Good luck! It is very harsh out there if you were ever in debt as they don't seem to care if you have paid off and kept on word on an agreement. Just keep saying to yourself that there is light at the end of the tunnel..