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Postive mortgage story after credit woes
Yorkie1974
Posts: 62 Forumite
I was looking in the forum for anyone with a situation similar to mine a few weeks back, and couldn't find anything, so now our situation is resolved, I thought I'd post our experiences.
We've been in rented accommodation for five years after selling our last home to settle all our debts - we'd been with a debt management company for six years and made little inroads into paying off (the company we used collapsed this year), despite their promises that we'd be debt-free in five. Towards the end of our time with them, when they knew our plan to pay off, they reduced payments to two of my creditors, which meant that I got two more default notices - just as all of the others were about to 'expire' their six years on my credit record.
When our landlord told us he was selling our property and gave us two months notice, my credit record was still showing the two defaults. We have no other significant debts (more than enough in savings to cover the overdraft we dip into each month). I was terrified that we wouldn't be able to get a mortgage... but we did!
We're completing the purchase of a house on Friday, with a 95% LTV mortgage.
We went through a mortgage broker to find a decent deal - not the best, but still below 4% - and despite my concerns, we were offered a mortgage within about 10 days.
So, if anyone else has been put off applying because of adverse credit history, this is a positive message - I'll have a 'clean' credit record in November 2017, and then we'll look to remortgage on a better deal, but for now, we're happily awaiting the keys to our new home.
We've been in rented accommodation for five years after selling our last home to settle all our debts - we'd been with a debt management company for six years and made little inroads into paying off (the company we used collapsed this year), despite their promises that we'd be debt-free in five. Towards the end of our time with them, when they knew our plan to pay off, they reduced payments to two of my creditors, which meant that I got two more default notices - just as all of the others were about to 'expire' their six years on my credit record.
When our landlord told us he was selling our property and gave us two months notice, my credit record was still showing the two defaults. We have no other significant debts (more than enough in savings to cover the overdraft we dip into each month). I was terrified that we wouldn't be able to get a mortgage... but we did!
We're completing the purchase of a house on Friday, with a 95% LTV mortgage.
We went through a mortgage broker to find a decent deal - not the best, but still below 4% - and despite my concerns, we were offered a mortgage within about 10 days.
So, if anyone else has been put off applying because of adverse credit history, this is a positive message - I'll have a 'clean' credit record in November 2017, and then we'll look to remortgage on a better deal, but for now, we're happily awaiting the keys to our new home.
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Comments
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Well done and congratulations! It helps to read a good news story after all the bad ones we hear. We are still looking after being rejected by NatWest. Who did you go with please?0
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