Mortgage with defaults?

hippychick1

Hi

I am interested to see if you think we may be able to get a mortgage. I have an appointment with a broker but not until next Friday so just would like to seek your opinions.

My husbands bankruptcy has just dropped from his credit report and the report has no adverse credit on at all. My credit report has three defaults, all 2010. One is still out standing for £1700. I do realise this would be better off paid now, but is a mortgage possible with it still outstanding? One account also shows arrangements to pay for a couple of years finishing June 2012, the creditor refused to default me in 2010!

Our combined incomes are just over 40k, we would have a 10% gifted deposit. The properties we are looking for would likely be under 150k due to our incomes. I realise we just have to wait and see, but we have been waiting for the bankruptcy to drop from the credit report for years now and are just excited!

Thanks for any help and advice you could offer.

amnblog

This all sounds very patchy for a 10% gifted deposit.


Is your broker aware of the background?

hippychick1

Yes. The broker actually tried to get us a mortgage this time last year as our landlord had decided to sell the house. We were declined, and have waited until the bankruptcy dropped from my husbands report. We have a couple of thousand saved for fees, and my dad is willing to give us around £15000 for a deposit.

Thrugelmir

Why haven't you settled the default?

hippychick1

I entered into a debt management plan 8 years ago to deal with £30,000 of debt my ex husband left me with. I have now repaid all this debt bar the £1700 which my ex is slowly paying off. It has taken tremendous effort to get all this debt paid off and I realise the £1700 is the final hurdle. Just hoping that it wouldn't stand in the way of a mortgage.

MaebyJade

The issue you will have is a potential lender would question your decision/thinking behind choosing to save instead of pay off your debts, I think that will be your stumbling block.

missyp123

I would personally pay the debt and work from there.

I can fully understand how excitied your both feeling...i cant wait!!! But it will make much more sense to clear it to avoid another rejection. Also you wont be commiting to a mtg with any debt.

If the debt was from an ex i would also ensure you have removed any assosiation with him from your files.