Declined Share2buy for 2011 missed payments - advice please!

Dparky84

Hi All


Hopefully someone on here will be able to help. I'm not seeking a silver bullet to my problems, but a bit of advice would be great.


Essentially i'm looking to get a share to buy mortgage and my first step on the ladder. the value of the share was 51k, with a 10k deposit taken off that (total value for share 61k for 25%)


Anyhow i'm 31 earning circa 40k, and whilst Ive got some credit card debt its all manageable and repayments made each month ( not full but more that the minimum)

Back in 2011 I was a bit of a prat with my money, and missed some credit card payments. about 6 in 01/11 03/11 05/11 9/11 10/11 11/11.


Im not naïve enough to think this will have no effect on my score, but the above declination for a share to buy mortgage cited the above missed payments. in short how long would something like this last for?


im concerned that the share to buy is my only real chance to get on the ladder, and ive read that the above payment missed could be a 7 year embargo on mortgages...


My plan is to clear all cc debt, and ensure nothing else is missed without fail. then use one regularly but settling it full each month, stay on the electoral register...


So in short how long would the above transgression hold me back from getting a mortgage, and would you have any other advice.


thanks for any advice in advance.


Best


Dparky84

kingstreet

For future reference, the term for your planned purchase is shared ownership. Share to buy is the outfit which has managed to get the contract to run the shared ownership portal in London.

Is this a newbuild, or a re-sale? This will have a bearing on the lenders open to you due to loan to value.

On which version(s) of your credit file do these missed payments appear? Is it a series like this 01011001011 or were there any twos or threes indicating multiple consecutive lates?

Have you spoken to an independent mortgage broker or did you go direct to the lender who declined you? Which lender? Leeds?

Dparky84

Hi,


Many thanks for your swift response, I had a few password issues so apologies for the timing of the response. and thanks for your aiding of my understanding of the shared ownership scheme.


This is a resale - is this viewed as more of a risk than a new build?


the series goes like this


1 0 1 0 1 0 1 2 3 0 0 0


Since this ive 36 consecutives 0's


The lender that was approached via the sharetobuy mortgage broker was nationwide.


My next step is a professional mortgage broker, but before I invest in that I wanted to understand if the missed payments in 2011 are a line crossed and something I need to wait 6 years for, or if cleaning up my report and to revisit the idea in 9 months is realistic.


Best Regards
and thanks in advance for any help.


Best
Danny

kingstreet

The three months' arrears isn't good. It's worse than a few 010101s.

If they are over three years' old, your chances should improve.

A resale is better than a newbuild as you don't have the newbuild LTV restrictions, but check carefully the remaining term of the lease.

I'd say you have a better chance of getting this away via a broker than you would making speculative applications and Nationwide was never likely to do this, IMHO.

If these appear on only one version of your credit file, there may be an advantage to be gained by using a lender who only sources from that one CRA so make sure you have them all when you see the broker.

Thrugelmir

Dparky84 wrote: »

Anyhow i'm 31 earning circa 40k, and whilst Ive got some credit card debt its all manageable and repayments made each month ( not full but more that the minimum)

How much do you currently owe? Lenders will look at your net position. As debt and savings do not sit in separate pots.