First time buyer with bad credit history

houseownerwannabe_2

Hi, I'm hoping someone can help me. I want to buy my first home but have a default that was registered in 2012, it will soon be cleared but wondered if anyone can tell me the likelihood of getting a 95% mortgage in this position? Thanks in advance

ACG

When in 2012?

Who was the default to?
How much for?
Has it been satisfied?

houseownerwannabe_2

Hi, thank you for replying.

The debt was passed to a recovery company in 2012 after it defaulted due to a marriage breakdown. It's being settled in full next month. The default date is Feb 2012 so I'm confused as to if it's classed as a recent default or over 3 years old as some of the lending criterias I've looked at say it's still possible to borrow if it's over 3 years old?

[Deleted User]

Lending criterias who allow defaults over 3 years tend to request that the defaults be settled, so it could be you'll have to wait until then.

Get all three copies of your credit reports (Equifax, Experian and Call Credit) and take them to a mortgage broker who will be able to tell you what your options are.

houseownerwannabe_2

So once it's settled will that open the market up a bit?

ACG

It will form part of your score, 2 high street lenders in particular who accept defaults after 3 years from registration would have wanted it satisfying within 6-12 months of registration.

There will likely be lenders but at 95% LTV I think you would be wise to invest in a broker to give you the best possible chance.