Defaults what date to go off + mortgage advice

pma13

Hello
I've worked really hard paying off debts yay to me. Just rang a mortgage advisor to book appt to look at if we could get a mortgage we have £6500 deposit just applying for right to acquire house approx worth £90000 with discount . Again this is all approx so depending on final no.s may be a 5% or 10% and due to length of time it takes to go through process will aim to get closer to 10% deposit. Have ftb account with nationwide as well
I earn £35000 and hubby £23000. So rang the mortgage advisor and I advised about my poor credit history and how I'd been on dmp and therefore some accounts had defaulted. He asked when these were and Iwasn't sure what date u go off. The last time they defaulted or first time.Anyway he's advised me to get a couple of copies and send over before booking appt as may be waste of time and he doesn't want to get my hopes up as most mortgages aren't going to consider me.

Anyway just found a couple of old ones ie February 2015 and nothing negative should be on since last year now. Ive got a default listed for my barclays current act 09/11 and Barclay loan default 11/11 . But even when on the dmp they still continued to be listed as defaults until paid off may and April 2014.

My husband has 4 defaulted accounts the last one being 08/13 and again continued be listed as default until paid off and the last was august 2014. So my question is what date do I go off? Does anyone think I have a remote chance, or because I have less defaults would I have a better chance go for a mortgage alone
Any constructive feedback please

ALIBOBSY

Any defaults fall of your credit file 6 years after the date of the original defaults.

I would suspect you would struggle with any defaults to get such a high amount of mortgage on such a low deposit.

Please don't be offended but I would expect on your income for you to have a massive deposit. We managed to save 10% off half your income in the 90's.
Although I realise you may have been throwing money at your debts-well done you :T.

I would say concentrate on saving as big a deposit as possible as this opens up more options for mortgages even with defaults as I understand it.

Get a copy of your credit files and see what the advisor says, if he says no go as things are ask would a bigger deposit help, he may say with 20 or 30% you stand a chance. Worth a shot.

Good Luck.

Ali x

pma13

No thank you for the feedback we have been concentrating paying off debts and have only saved that amount recently but have 2 children and childcare cost to add to the mix , x

David_White

If any of your defaults were registered within the last 3 years you will need at least a 15% deposit.

If between the two of you you have more than 2 defaults in the last 24 months you are potentially going to struggle finding a lender.

solentsusie

Hi pma13


I agree with David White, if any defaults are within the last three years you will need a much higher deposit and will definitely need to go through a broker to get the best deal.


From reading your post the last defaulted account was August 2013? Which makes it only just two years old. Have all of your defaulted accounts been paid off?


Once you have paid everything I would suggest saving as much as you can, and wait until the youngest default is at least three years old before applying.


Your personal circumstances will be taken into account when applying for a mortgage, so make sure you have as little outstanding debts as possible such as credit card balances, loans or overdrafts. Regular costs such as childcare will also have an effect on how much you will be able to borrow.


Well done for getting your debts sorted this far, but perhaps you may want to consider waiting a while until you have a decent deposit and the defaults are older before taking on the commitment of a mortgage. With your current history and such a small deposit available you will be offered higher interest rates if a mortgage is available to you.


Good luck.