Advice please on buying with previous bad credit history

DEADBIRD_2

I am hoping that someone in the know can give me some advice.

My husband and i accrued a significant debt (around £50,000). We have had a DMP with the CCCS since 2002, recently paying £1,187 per month, with only £3,000ish left to pay (last payment due in October but have money to clear this now if appropriate). We own our own home worth approx 85,000 and we have not defaulted any payments on mortgage since 2000. We made some reduced payments to cccs (arranged) in early 2006, which i now know count as defaults.

We have seen a house we like for 169950, which is more suitable for our needs and more accessable for work etc and we are really keen to move (and have a potential buyer for our house already). I know we wll have no problems meeting the mortgage payments as they would be far less than our cccs payments.

My question is will anyone lend to us now our cccs dmp is (potentially) finished. Will we still be classed as sub prime?

Any thoughts would be helpful.

Cheers

Lil

homer_j_3

it is more than likely that you can be helped as people can be helped 1 day after bankruptcy.

You would need to disclose income and deposit that you would have from your sale.

JoeK_3

Unfortunately you will still be classed as sub prime but subject to your incomes you should be able to have a mortgage.

JoeK

MortgageMamma

Whether you would be classed as sub prime depends very much on the state of your credit reports, and until someone has had a look at the reports nobody is really in a position to comment.

There could be one or two of the more sympathetic high street lenders that I know of that would be prepared to consider this.

It seems you will have a healthy deposit upon the sale of your existing property, and income permitting you should have no problem securing a mortgage if you take professional advice.

I just want to make you aware not to approach lots of lenders on the offchance that they will accept you. They will all leave a footprint on your credit report and too many checks can reduce your credit rating and put other lenders off from lending to you. It can very quickly become a catch 22 situatoin.

mon1o

hi there!

My husband an i were in a similar situation to you last week. We have a plan with CCCS at the moment and my husband has 1 default on his credit file. This caused the bank we are currently with for our mortgage to decline our application. However, the mortgatge advisor said because we had been with them for almost 5 years and never missed a mortgage payment she would refer the decision to the head office and let them decide. On friday we received a call from them to say that despite the default and the plan with CCCS they would give us a mortgage but only a certain amount. They told us that they can see that we are trying to sort our debt out and get rid of it so that counted for us along with a good record of mortgage payments.

Sorry i ramble...have a word with your lender and see if they can help you. i think that the fact you last defaulted on your mortgage was in 2000 that default should not be on your file anymore because it stays on for 6 years (from what ive read, i may be wrong)

Good Luck,
Monica