Likelihood of finding a mortgage

dubzp

Hi,

I'm currently renting a flat whilst saving for a deposit, in around 4-5 months I'll have around £20,000 saved. I'm 22, PAYE £50,000 year, employed with the same company for the last year and a half.

I'd like to move out as soon as possible as the money I'm paying for rent is paying someone else's mortgage! But I'm concerned that I'm going to find it extremely difficult to find a mortgage.

In the past I guess you could say I was slightly naive (and less informed) about the issues with pay day lenders and money management.... I've had 3 loans from Wonga.

- First was settled in full with the agreed time in Aug 2012 (no default).
- Second settled with a payment plan in Dec 2012 (no default).
- Third.. this one defaulted, it was settled satisfactorily in March 2013. If I'm honest I'm not sure how it defaulted, I wouldn't of let it default if I knew about it.

Anyway, that's in the past and as far as I know there's nothing I can do about the default (unless I can ask them for a record and proof that the payment terms weren't met, unrealistic?).

My money management is really good now, all my bills are paid on time. I've been using a credit card and making sure it's paid off each month to increase my credit 'rating' etc.

If I have a £20,000 deposit saved, am I going to come close to finding a lender that'll approve me on the basis of a 90% LTV mortgage? I'm in Surrey and that's just about going to find me a 1 bed flat.

Given the default and my age, even though the affordability isn't a problem I'm not holding out for any luck. Can anyone give any advice?

Thanks.

amnblog

Your post suggests you defaulted on a payday loan early in 2013?

Not the kind of profile attractive to 90% lenders.

I suspect you might need to increase your deposit to 15%.

Consult a broker in the first instance.