Want to buy a house......

207uk

Hi all, first post on here and I hope you can help or offer some advice. I am 27 and currently living in rented accommodation. I earn good money and can get my hands on a decent deposit for a property and easily afford the mortgage repayments on a 180 - 200k property. However my credit score is terrible. Around 516.


This is due to me piling the money I had into an unsuccessful business in 2008 - 2009 rather than buy a house at the time, taking out business loans and personal loans to try and keep the business afloat. This failed and according to my credit rating leaves me owing around £14,000 to various banks.


From the day of the first default which would be around the end of 2009 to today I have not acknowledged any letter from any bank, debt collector etc and have pretty much buried my head in the sand. I know this wasn't wise but I really did not know what to do for the best.


I'm now privately renting, have never defaulted on anything since and am earning a good salary but I don't know what to do for the best? I would really like to buy a house nearby but fear I will never get a mortgage.


Any help or advice will be gratefully received.

anna_1977

I'm sure someone with more knowledge will comment soon but...
Defaults drop off files after 6 years from the default date.How many are on your credit file and what are the dates?

Pixie5740

First of all, forget about your credit score. It's meaningless. You don't have a universal credit score and Experian, Equifax and Call Credit don't lend money so any score they assign to you is like a broken pencil....pointless.

If you haven't acknowledged your debts since the tail end of 2009 then they will probably become statute barred very soon.

The issue you will face is that whilst your credit file shows 6 years of credit history banks and building societies also keep their own records. For example if one of your creditors was Halifax and you owed them £6k, defaulted and the debt became statute barred even though that debt may no longer show on your credit file Halifax would still know about it which could make it difficult for you to obtain a mortgage with Halifax. Someone posted about a similar scenario on the Mortgages board a few months ago. She had a state barred credit card debt with a lender, applied for a mortgage with them years later and they told her to Foxtrot Oscar.

That said, it's not impossible to obtain a mortgage. You should sit down with a whole of market broker and probably avoid and lenders that you will have statute barred debts with.