Bad Credit Mortgage / High LTV

London32

Hi there,

Due to a particularly difficult point of my life, I took out various payday loans and defaulted on these. I also received a CCJ from a previous credit card. This was all around 4 years ago and I've now paid off pretty much everything. As you can imagine, my credit rating right now is pretty low. I'm waiting on the satisfied CCJ and defaults to drop off my report (2018/2019) and then I'll be pretty much debt free. I have a couple of credit cards with decent limits and I'm obsessed with making every payment on time every month. I've not had a payment problem in around 60 months so I've learnt an extremely valuable and important education on how to operate my finances.

Now, here is the dilemma... we have put down £200k on a £550k new build property, we could potentially put another £50k down if we need too. With my credit problems that are still showing, is it likely I'll be able to get a mortgage? My husbands credit report is completely clean and we both earn very good salaries. Would high street banks accept us?

Any advice is greatly received. Thank you.

ACG

Potentially. But it wont be for every high street lender. Some lenders do not like to see any pay day loans, others do not like to see CCJs/defaults etc. But there are some who subject to scoring of your application will accept defaults/sight of pay day loans.

I would suggest speaking to a broker who specialises in adverse. They will know the high street lenders where it is most likely to fit.

On a positive note, its a pretty LTV. You have a healthy deposit there.

David_White

London32 wrote: »

Now, here is the dilemma... we have put down £200k on a £550k new build property,

Have you parted with any money before getting a mortgage agreed or finding out if a mortgage is possible?

London32

Yes but if I cannot be accepted for a mortgage then we will borrow any shortfall from family and then remortgage in the future. My partner will get a mortgage in his name solely but I'm hoping we do not have to go down this route. I'm aware of the risks of parting with a large deposit before having a mortgage agreed. We will have the option to flip the contract if, god forbid, we couldn't raise enough funds.