Mortgage Advice - First Time Buyer with Defaults

poots182

Hi All,

I do apologise if this information is readily available but I am in completely unknown territory.

I'm looking for some advice with regards to acquiring a mortgage with bad credit.

I'm 26, been with my wife for 5 years but previous to this I made some mistakes, got myself into debt I couldn't then repay and then, ignored it for around 18 months until I had a wake up call and contacted the now debt collection companies to set up a payment plan.

I am aware that on my credit file, each account which defaulted is now defaulting every month even with the payments and will continue to do so until it is paid off and then will remain on my file for a further 5 years I believe?

My question is, what is the likelihood of getting a mortgage ? I know absolutely nothing about mortgages and have for the last few years just dismissed the idea of having our own home assuming I'd get nothing, I've looked into 50/50 ownership and other things but don't know what to look for or what to do to be honest and don't have anyone with experience to ask, the only person I asked said a mortgage advisor wouldn't speak to me unless we had the deposit ready.

Again I apologise if this question has been asked a million times before, a point in the right direction would be greatly appreciated.

Many Thanks,
Patrick

ACG

Most (if not all) lenders go off the original date of registration for defaults, so it sounds like your defaults are all at least 3-4 years old?

If so, that gives you a good chance of getting a mortgage.

The issue you will have with high street lenders is how you have a deposit but debts that you are paying off slowly. If you have a 5-10% deposit I would think rates of 6% ar achievable.

If you have a 15% then maybe rates of 4.5% or under would be possible.

ap1985

Just speaking from my experience, I had defaults and a CCJ, when i applied for a mortgage some were 5 years old and some were just over 5 years old. The mortgage company took this into consideration. Have you finances been clean over the last 2 years?

I also had a good deposit which helped in my case. Mortgage companies will also look at your bank statements for affordability so I would also limit your spending in any way possible.

poots182

Hi thank you for the replies, just checked and they are actually 6-7 years old, I had 9 accounts defaulted, I have paid 7 of them off and are now satisfied, the last 2 amount to about £3000 and were opened on 2010 and 2011.

Your comments are greatly encouraging, what kind of habits do they monitor on your bank statements? Does the fact my wife has an excellent credit score & history help at all?

Many thanks again

ACG

If you go to a credit scoring lender both credit reports will be scored but it is not really a case of one pulling the other up. A good or atleast average score is expected so you do not get bonus points for that as such.

Speak to a broker with some experience in bad credit mortgages. You may have high street options available to you.

erin110

poots182 wrote: »

Hi All,
I am aware that on my credit file, each account which defaulted is now defaulting every month even with the payments and will continue to do so until it is paid off and then will remain on my file for a further 5 years I believe?

If this is the case you may find it a bit harder, but it does depend on what type of arrangement it is, such as a phone bill or utility. You are best getting a copy of all your credit files and speaking to an experienced broker.

ekumi00

You Can Get A Mortgage. There is a lender out there for everyone. I have recently done a case which involved 4 defaults and 3 CCJ all within 24 months and they were still offered a mortgage. Not the best rate but they now own a property. As long as everything is clean in the last 6 months, you'll be ok. Make sure you see a 'good-whole of market' broker they can help