Mortgages for Bad Credit History and Low Wage

SJM70

Hi, does anyone know of any lenders that will lend with previous poor credit history? I defaulted on credit cards in 2006 upon advice from CCCS and ended up with 2 CCJ's against me in 2007. All my debts were settled in July 2011. I am currently renting and looking to buy but only work part-time and get working and child tax credits. I am looking for a lender that will take tax credits into account. Anyone with similar experience who ended up getting a mortgage. My Noddle credit rating is currently 3/5 and am awaiting an experian report to come through. A mortgage adviser ran through a DIP with Halifax and I was rejected due to adverse credit but that is all they would say. Should I give up?

supermassive

How'd you get that Noddle score? I've got a 1/5 with various up-to-date perfect accounts and one 16 month old default..

I'm in a similar boat to you in that a default, which has been settled, and is in no way as bad as having a CCJ or unpaid default, is !!!!-blocking me from getting anywhere near a mortgage. It's shocking.

However, with you working part time it won't happen.

kingstreet

Adverse credit falls off your credit files six years after it is registered so there must be something more recent than 2008/9 for it to remain visible now?

SJM70

I registered with Noddle for the free report. It gives you the rating but you have to pay to get your exact score. All my debts show as settled so can't understand by I would have an adverse credit score. The only thing that I think could let me down is the fact that I am not yet on the electoral role as I have only just temporarily moved to this address. I gave them my details and they say I will be on when register is updated on 1st April. Will check my experian report when the password finally arrives to do this but I have never got into trouble with credit since I was on the DMP. I was told some lenders will take tax credits into account with a mortgage but not sure who these lenders are?? so I can approach myself.

SJM70

I have since been told that Nationwide and Santander may consider tax credits, has anyone else been accepted by them?

kingstreet

You don't have a credit score in the UK.

Each lender sets its own score and marks you against its scorecard when you apply for credit.

All you need to look at the data on your credit file to see if there are any items of concern.

SJM70

There was no items of concern, everything looked fine, all stated settled. Im hoping once im on the electoral role next month it should be ok. Just worried about finding a lender who take TC into account as don't want to apply and get rejected as that will affect my score again, hence asking for lenders who do take it into account.

kingstreet

Not something a broker will tell you on here.

It varies with some lenders taking only working tax credits, some taking both but not childcare element and so on.

Appoint a broker to act for you and you'll get the lender which best suits your needs and will lend you the most...