bad credit mortgage advice

abacus2017

Hi there,

I am after a bit of advice.

myself and my husband are hoping to get a mortgage within the next year or so but our credit scores are less than perfect.

I've just checked on Equifax and a rough run down is:

myself: got into a mess around 2013, have 2 CCJ's as a result (both which are now paid off but don't fall off totally until 2019) I also have 3 accounts in default, which defaulted around the same time, the total is left is around £2500 and I pay these off monthly. Everything else since then has been paid on time, phone bills, utilities etc.


My husband: his score is better but still on the lower end and he has no defaults or CCJ's but some late/missed payments around 203/14


We've both been trying together really hard to improve our scores by keeping everything paid on time over the last few years, but obviously the past has impacted us massively and continues to do so.

Do you think there is any way a mortgage broker can find a deal for us? I know if we did have a chance we would be paying over the odds and this is to be expected, but I'm just worried we will go to the mortgage broker and be told no laughed at!

please no judgey comments, yes we are idiots for getting into debts and not paying things on time, but obviously we are trying to rectify these mistakes since! :mad:

ACG

Percentage wise how much is your deposit?
Assuming you have 5-10% there may be a lender it will fit with but it comes down to the details.
If you have 15% I would be confident you can get a mortgage, possibly not high street rates but northing too bad, maybe 4-5%.

abacus2017

yes sorry i should have said we are saving and should have around 15% deposit. We are looking into help to buy schemes (Wales) which would mean we could pay less deposit but not sure how they fair with bad credit applicants

ACG

The lenders that typically accept adverse, do not usually accept HTB, although there is a possibility you would be able to get high street rates (only a slim chance) but in that case you could potentially use HTB.

abacus2017

[FONT=&quot]ok thanks so much for the reply, at least I can meet with the broker with some kind of hope next week! [/FONT]

abacus2017

Hiya just another quick question, my dad pointed out the new Barclays springboard mortgage which allows parents to use their savings as the deposit for their children - do you think thereabouts any point us even trying with Barclays? He wants to make an appointment but I'm afraid it will just be a let down. It would be around a 15-20% deposit. Thanks in advance

ACG

Im not sure you would fit Barclays criteria, you would need to check.

But if you have a 15% deposit, I do not know why you need to worry or look for alternatives elsewhere as there will/should be options for a mortgage.

abacus2017

Ok thank you, just exploring all options but I guess the mortgage broker can give us more guidance next week, thanks!

Thrugelmir

If you have savings why haven't you simply repaid your debts. Your profile will look greatly improved. Says a lot about you as a potential borrower if you don't.

abacus2017

Thanks or the the info, I didn't not know whether it would make much difference paying them off in full as opposed to monthly amounts because essentially the defaults will stay on my record until they drop off completely anyway, but it's definitely something I will consider now

abacus2017

I didn't know*