Default and new mortgage

Lew602

In the last 2 years I've aquired a few pay day loans and not been able to pay them off. These have all defaulted. Lucky I've just inherited 80000. I would like to try and get a mortage. If I paid off all my depts what would my chances be of getting a mortgage. And will m credit score go up? Thanks for reading.

[Deleted User]

Settled defaults look better than unsettled ones. That's all we can tell you. You'll need a broker if you have a patchy credit file.

Anything your credit score does is irrelevant. Ignore it.

StopIt

Remember lenders will be looking for long term affordability.


Can you afford a mortgage once you've used the lump sum? Defaulted PDL loans, settled or not will be a massive "awooga" to many lenders. What is the rest of your credit history like? Any other defaults, CCJ etc? Your full history will be important here.


As above, go to a specialised broker, and do not aim higher than your means because you have a lump sum now.

Lew602

Thanks for the quick replys. I'm Def sure I could afford the repayments. I'm paying 700 a month rent at the min, and hope that if I'm able to get a mortgage the repayments will be around 500 or less. I'm always on time with rent. Would proof of this also help? I'm earning 27000 a year before tax and have been in this job for nearly 15 years.

Lew602

No ccjs either sorry nearly missed that. The defaults are all from last year. Was all fine until then

PixelPound

Get a broker who can handle adverse credit. You can do an initial enquiry with a few to see if one gives a reasonable response (I had to use an adverse credit broker and a couple I contacted initially wanted to push me into the direction of specialist lenders or give them a couple of weeks to make enquiries. I went with a broker who told me he'd recently a client in a similar situation he'd sorted with a high street bank mortgage, said he could do similar for me, and did)