Improved Circumstances - Mortgage Chances?

pnatt

I am after some advice on Mortgages. I have previous defaults which are affecting my credit score. The most recent was in September 2014. My financial circumstances have improved significantly since then and I am on track to have all my outstanding defaulted balances cleared in the next 6 months. At that point I will have a single credit card with a £2k balance (which I will then start to pay down with the money freed up by having paid off the bad debts) and my mortgage balance of approx £60k.


I had some previous advice that once the most recent default was 2 years old some lenders would become available however in September 2016 when that became the case I was turned away from a mortgage advisor (apparently specialising in poor credit cases) as one of the defaults was to a payday lender. At that time I had hoped to use some equity in my property to pay off all my other debts and get to a clean position. I am no longer interested in doing that as I can be clear of those in 6 months without extra lending but I am worried that even when I am in a debt free position I will struggle to get credit to move house.


At that point in 6 months I will be debt free (excepting mortgage balance). I was hoping to look to get a 50-60% LTV mortgage to move but am worried my credit history will have me stuck where I am for years. Am I likely to have lenders available to me in 6 months? What can I do to improve these chances that I am not already doing?

Thrugelmir

pnatt wrote: »

What can I do to improve these chances that I am not already doing?

Clear your existing debts quicker. The sooner you have a clean slate the better. As building good history takes time.

When did you settle the defaults?

Partial or in full settlement?

How much were the default for?