Mortgage Bad Credit

jungleg1234

Hello everyone,

Just after some advise. My wife and I are currently trying to buy our first home. We have the deposit ready but due to mistakes made a couple of years we have a bad credit rating.
We are both in full time employment with a good combined salary and trying to get our redit rating in the green.
Is there nothing we can do to get our maortgage while we have bad credit?
I see people who are in a worse situation than us having a house so dont really understand.
I am new to the property world so appoligies if I come across clueless.

We have seen a house we want but dont want to go down mortgage route as if we get rejected this will affect our credit score in a nagative way as it already has.

Thanks very much

kingstreet

All three versions of your credit file to a broker to establish what will be possible and when.

Pay no attention to "scores" it's only the raw data which is important to brokers and lenders.

aero1

Just the other day we got an AIP with a lender for people for adverse credit.
They are out there but you do pay (much!) higher rates, higher set up fees etc.

We are still deciding if we are willing to fork out hundreds extra each month when possibly even this time next year, we would look better again on paper as it would be another year with no red marks anywhere.

Thrugelmir

What's the nature of your "bad" credit?

amnblog

aero1 wrote: »

Just the other day we got an AIP with a lender for people for adverse credit.
They are out there but you do pay (much!) higher rates, higher set up fees etc.

We are still deciding if we are willing to fork out hundreds extra each month when possibly even this time next year, we would look better again on paper as it would be another year with no red marks anywhere.

You may find the property prices rise in the interim by much more than the 'extra' interest.

jungleg1234

Hi,

We don't have any CCJ or bankruptcy. We have some payday loans from maybe 2 years ago but they were always paid off in full.

I have had issues with RBS but that is been felt with bu the ombudsman. We both have high credit amounts such as car finance etc.

Can't seem to get accepted anywhere.

At presenter both show Poor on experian.

Thanks

amnblog

What does 'issues with RBS' mean?

aero1

amnblog wrote: »

You may find the property prices rise in the interim by much more than the 'extra' interest.

I know Plus interest rates will have gone up too, almost definitely.:(
The only saving grace for staying put and saving up, is that hopefully the value of this house will have gone up too. Plus, the difference is payments would be £400 extra a month and thats' a lot - almost £5k.

Thanks Amnblog

jungleg1234

RBS have broken an agreement which we had in place and so in order for it to be resolved I have had to take it to the Ombudsman.

It seems the pay day loans are having the worse affect on our credit score.

Thanks

[Deleted User]

Payday loans won't affect your 'score' (although as has been noted, your score is meaningless), but it doesn't look great to lenders as it seems like you can't manage your money between paydays. You say they were paid back in full, were they paid back on time?

I have a history of payday loans and defaults and I've had to go to a subprime lender through a broker to get a mortgage. 15% deposit and higher interest rates, but as noted above we've decided to suck it up for two years and remortgage rather than wait as long for defaults to drop off only for interest rates to have risen anyway.

Get all three copies of your files, check for any anomalies, and get them in front of a broker. There will be possibilities for you I should think, it's just whether or not they'll be restricted.

Thrugelmir

jungleg1234 wrote: »

We both have high credit amounts such as car finance etc.

This may well impact your application. The word high suggests that it's a sizable amount.