Adverse credit and mortgage?

hippychick1

Hi
Our landlord is selling our house. We were looking to buy next year when most of our adverse credit has dropped off our files but my dad has now offered us a gifted deposit. We have consulted a broker and we are waiting to hear back from him as he is looking into whether we can buy with a 15% deposit.

We have just viewed a property which we have fallen in love with and my dad has now offered us 20% deposit. We are so excited but wondering if we can access a mortgage or not and would like to know what you experts think.

The house is £115000 and we would have 20% deposit. My salary is £18500 and my partners approx £23000. It is the adverse credit which makes me unsure if we would have a chance of a mortgage. My partner went bankrupt in 2010 and was discharged Sept 2010. Also has one small settled default from this time. I have four defaults also from 2010. Three are settled, one is not for £1800 as I had no idea this was on there. For the last 5 years we have clean credit records, having a credit card each which we use and pay off.

Do we have any hope at all? Or is it just going to be a no?

amnblog

You have limited options here but a good broker will most likely find you one.

Thrugelmir

hippychick1 wrote: »

Three are settled, one is not for £1800 as I had no idea this was on there.

Maybe a good idea to address this. As yet could cause you problems.

hippychick1

Thanks for your replies. I know the main problem is the £1800 default which is unpaid. If I paid this off now, how long would it be until it showed as paid on my credit report? The property has only been up for sale for 2 days and already has had a lot of interest. I know it will be snapped up. This has all happened so quickly as we had planned to buy in approximately 2 years. It is the landlord selling up that has made us consider our options.

Thrugelmir

I was also thinking that you could yet be pursued for the debt.

hippychick1

I have only recently found out about this debt, run up by my ex husband on our old joint account which I thought was closed :mad:
I have never received any requests for payment and it looks like my ex has made small payments to the debt over the years. Whereas he left me in 30 grand of debt and I've paid this off, he has managed to pay off £150 of this overdraft!! I'm so angry but will contact the bank and pay it off. With the defaults being 5 years ago do you think we stand a chance of an 80% mortgage?

hippychick1

Well our broker has got back to us saying there is one potential lender for us and he will investigate this further this week, leaving a footprint on our credit file.

To be honest I don't hold out much hope but at least we will know one way or another hopefully by the end of the week. If the answer is no we will just have to find somewhere else to rent and continue to save for the next 18months until the defaults have dropped off our files. It is such a pain our landlord has decided to sell now!!

hippychick1

Could I ask all the brokers out there....how long does it take to apply to a lender? Our first meeting with our broker was 4 weeks ago and we are just waiting to hear from him. I did speak to him last week and he said the lender he was going to apply to required him to register with them. I understand none of this process!! I think the lender was Kent Reliance. How long is it likely to be before we have any idea if a mortgage is feasible for us?

We just want to know whether we should be looking at houses to buy or houses to rent. Seems such a long wait to find out. Thanks very much for any input.

Teaandtoast0124

Wow that's a long time. I rang a broker gave him all my details. And he rang me back saying I have been accepted 2 hours later.

hippychick1

This is what I thought! I realise it is not a straight forward case but the process is taking far longer than I thought. Should I change my broker?

mboo29

Hi just wondering if you got a result in the end?