Being realistic

hanb

Hi all,


After keeping my blinkers on for far too long I'm now in a bit of a pickle.


I'd like to buy my first home next year but I have an unsettled default on my account for £1000 from August 2010 (although I have requested the default date be brought forward 12 months to tie in when I started the DMP). I'm in a position to pay this off shortly but I want to know what the chances are of getting a mortgage (with my partner with a spotless history) are before the default drops off in 12 months time. Or is it better to pay the account in full now and not even think about a mortgage until the default drops off at the end of next year?


Not sure if this makes much difference but figures are looking like:
Combined income 61k (26k for me)
Deposit 80-90k
Likely property price 280k (ish)


MY 'credit rating' is fair rather than poor and the above is the only issue on my file. Hindsight is a wonderful thing but nothing I can do now other than try and make the best of things and know I won't be that stupid again!


Any advice on what would be the best thing to do would be great! OH works for a bank so can get a great mortgage deal but I obviously don't want us to go for anything if I'll stop us getting it

ACG

There could well be high street lenders available now.
If not then there will be lenders marginally above high street rates. Maybe have a chat with a good experienced broker for some advice?

David_White

Based on what you've said I believe you would have a good chance of getting accepted by a High Street lender now, especially if you were to settle the default.

A Mortgage Broker would be beneficial to you in this scenario as some lenders are likely to be more forgiving than others.

Good luck