Defaults and missed payments - help?

Octaben

Hi all

I have asked for help on this topic previously but it was suggested I should ask in this section instead

Basically in 2013 my partner moved to Canada with her ex partner and son, he had a lucrative job offer and family there

As it transpired, he either failed a drug test or never took one so the job came to nothing

When they moved, he told her that since he would be the only one earning (she had no visa to work) that he would take care of her current credit commitments in the UK. Unfortunately not only did he not pay the outstanding payments, he ran up a further credit card debt of around 10 grand on her card....mostly on drugs and related items

When she saw the light and ended the relationship, she came back to the uk, in around April 2014, owing the following (approx):

£10,000 on Barclays credit card
£3,000 on hsbc overdraft
£1,000 on littlewoods credit account
£900 to O2 for a previous phone contract
£62 ish on some other credit agreement

Barclays never defaulted the account, just marked missed payments every month. The other 4 registered defaults between I think June and October 2014

The o2 account was paid off in full before she then went onto a debt management plan at the start of this year. In May of this year I too out a loan in my name and settled the credit card, the overdraft and the littlewoods account (the £62 she paid off), this was on a reduced settlement with each company getting around 60-70% of the balance

Now my understanding is that the defaults begin when the accounts first defaulted, despite her credit report showing them defaulting month on month when not being paid, so in theory she is just over a year since the last account defaulted

I currently have a flat that I rent out and my partner and I, along with my daughter and her son, rent the house that we live in. I shall be looking to sell the flat next year and will release around 55k in equity. We have a joint income of just under 60k and no other debt

When she settled the debt management plan, they advised her to not attempt to get a mortgage for at least 2 years. She has recently been approved for a capital one credit card (£500 limit), purely to start showing that she can handle credit and it is only used for petrol and groceries etc and cleared each month

If you're still with me, my question is, realistically, when should we start looking at mortgages. I know we're talking October next year at the earliest, but what are the chances of us actually finding someone that will lend?

I have spoken to a couple of financial advisors and they've just said 'we'll have to look at it at the time', but I'm trying to make a decision with regard to my flat and whether I should sell it or look to remortgage and keep it for a while longer

Another option we have is looking at shared ownership properties which would then just be in my name

Any advice would be massively appreciated, and if I've missed anything out, please ask

Thanks in anticipation

Ben

Thrugelmir

Suggest you speak to a broker specialising in adverse credit. A year from settlement after a DMP is pushing the boundaries. Partial settlement will be a negative factor too. Dates of default pale into insignificance in the short term.

csgohan4

That's a lot of debt, you should contact the fraud team of the credit card if it was used without her knowledge.


Debt should be cleared asap, as above mentioned you need a mortgage broker who is good with adverse credit.


Depending on what you can save up next year it does not look good for next year.


The key thing here is affordability and if the lender will lend given the history

Octaben

There isn't any debt, as above its all been cleared

We would have around 60k deposit

Just trying to find out if anyone has any experience of a similar situation

Octaben

As for fraud, it's her son's dad, so she does not want to pursue that....it would be difficult to prove anyway

csgohan4

Octaben wrote: »

There isn't any debt, as above its all been cleared

We would have around 60k deposit

Just trying to find out if anyone has any experience of a similar situation

Probably one for ACG, he deals in Adverse Credit.

amnblog

I'm afraid the people you have already spoken to are probably correct Ben.

October is one year away and we do not know for sure what options will be available on the mortgage market until then.

In the meantime a broker can only assess your case based on current options, but if you want that assessment done properly, you will need to pay for it.

Octaben

Don't get me wrong, I don't specifically want to know what deals will be available. Just more interested as to people's previous experience with this sort of scenario. I don't really want to sell my flat and then find it'll be two years before we can get a mortgage

Looks like I'll just have to take a guess

Octaben

Sorry to bump his up again but just wondered if anyone else could give any more advice

We are coming to the end of our 12 month tenancy agreement at our rental place and deciding whether to renew for another 12 months fixed term or maybe try and include a 6 month break if we think a mortgage is in anyway viable this year

I've read other topics where people have been advised that a 15% deposit is a big help and we can easily have that, it seems the DMP was a mistake as it only ran for 3-4 months but will mean an auto decline from some lenders

Basically just trying to get an idea what our options are if anyone can help...

Thanks

Octaben

Octaben wrote: »

Sorry to bump his up again but just wondered if anyone else could give any more advice

We are coming to the end of our 12 month tenancy agreement at our rental place and deciding whether to renew for another 12 months fixed term or maybe try and include a 6 month break if we think a mortgage is in anyway viable this year

I've read other topics where people have been advised that a 15% deposit is a big help and we can easily have that, it seems the DMP was a mistake as it only ran for 3-4 months but will mean an auto decline from some lenders

Basically just trying to get an idea what our options are if anyone can help...

Thanks

Anyone?...

csgohan4

you've been given the advice, even though it's not something you wanted to hear