First Time Buyer & bad Credit

bamgbost

Hi Guys

We are looking to finally buy a place. My worry is that we have a bad credit history. late payments over the years and 2 defaults from 2010 & 2011. - for myself (after uni, didn't pay debts, etc).

Anyways fast forward to today, and I am keen to buy a place.
I have received a gift from parents and inlaws and can put together a decent deposit.

But with both of us having poor credit, what is the likelihood of getting a mortgage approved? If not by a high street lender, are there options with sub prime lenders? my initial thoughts is they would want a high deposit, perhaps a guarantor?

Does anyone have experience in this area? It would be great to hear your advice.

Leon_W

It depends on the size of the defaults and when they were registered. Also the percentage of deposit you are prepared to put down.


Obviously the larger the deposit and the smaller the defaults (and older) the more likely you'll be approved but as you give no figures there is no correct answer. On average a 20% deposit will see you in a fairly good position.

bamgbost

as mentioned above defaults were 2010 & 2011. For a normal amount of 2k & 3 k each.

Will it help if say our household salary is 35k. But we only want a mortgage of twice our salary, rather than wanted say 130k?

Leon_W

OK.


The defaults I would consider large but saying that they were quite a while ago. Lenders criteria would typically say something like "defaults accepted but none in the last two years" or variations thereof such as "defaults accepted within the last year no larger than £350 "


2xincome will always be better than 4xincome, although as long as you are borrowing within the lenders lending limits it won't have a great effect.


Without knowing your full situation, 2xincome, 15-20% deposit, no recent adverse then I would be hopeful for you. It's broker territory though as I can't see high street lenders taking it on.

bamgbost

ok. cheers Leon.

How do I do the "broker route"

Who or where exactly do I speak to about that? Any direction or websites would be helpful.

And btw... I assume we say high street lenders are not likely due to not squeaky clean history?