Mortgage after DMP/payday loans/defaults

Skye_2017

Hi all,

Last month I made my final DMP payment and am now completely debt free, after approx 5 years!

My boyfriend and I are now starting to save for a deposit and should hopefully have around £20k by the end of next year . Based on current house prices in our area this would be around a 10% deposit. I earn £27k a year and he's on around £30k. He has his car on finance, but no other debt.

I'm just wondering how realistic we're being. Based on my credit history, is it at all likely that we would be approved for a mortgage towards the end of next year?

Looking at my credit report, I have three defaults. One credit card default of £2k from Jan 2013, a personal loan default of £12k Dec 2012 and a credit card default of £1.5k from Jan 2013. However I have also used payday loans whilst on my DMP - as recently as last June (I know, not great. But I paid them off on time and didn't at the time realise how bad they look on a credit history). My boyfriend also has a small mobile phone default but it's from 2012 so will have cleared by the time we are thinking of applying. I should add that all the accounts have been paid in full.

I just want to make sure we don't get our hopes up too much. If it's unrealistic then I'd like to set our expectations accordingly.

Thanks in advance!

ellison007

Hi


See link below, this is a good starting point. You need to cross reference YOUR circumstances with the lending criteria. Note tho', that the lenders' criteria is FLEXIBLE and you may be able to persuade a lender to accept you even if you fall slightly outside their lending rules.


ALSO, engage a mortgage broker - don't try to be clever & do it yourself directly via a mortgage lender. They are the professionals & a good one will help. Choose one which only gets paid IF you secure a mortgage.


http://www.3-mc.com/compare-criteria/


Best of luck.

Skye_2017

ellison007 wrote: »

Hi


See link below, this is a good starting point. You need to cross reference YOUR circumstances with the lending criteria. Note tho', that the lenders' criteria is FLEXIBLE and you may be able to persuade a lender to accept you even if you fall slightly outside their lending rules.


ALSO, engage a mortgage broker - don't try to be clever & do it yourself directly via a mortgage lender. They are the professionals & a good one will help. Choose one which only gets paid IF you secure a mortgage.


http://www.3-mc.com/compare-criteria/


Best of luck.

That link is so helpful! Thanks very much

ACG

I realise a site like 3-mc looks good but do not rely on it too much. It is hard to explain why but sometimes it looks more generous than the lenders actually are and other times the lender can be more flexible than the criteria states - in short, take it with a pinch of salt. I am not saying it is incorrect, just not always accurate.

But to answer your question, there are maybe 2-3 lenders I can think of who would potentially lend to you at 90% LTV.

Skye_2017

ACG wrote: »

I realise a site like 3-mc looks good but do not rely on it too much. It is hard to explain why but sometimes it looks more generous than the lenders actually are and other times the lender can be more flexible than the criteria states - in short, take it with a pinch of salt. I am not saying it is incorrect, just not always accurate.

But to answer your question, there are maybe 2-3 lenders I can think of who would potentially lend to you at 90% LTV.

Thank you. I'll use it as a rough guide but keep what you've said in mind.

2-3 potential options is better than none, so it's a start! Do you think if we were to get a 15% deposit together it would open many more doors or would my credit history still be the issue? How long do you think we would need to wait before having more options?

Thanks again!

David_White

I'd be very cautious with that link as lenders tweak their criteria from time to time and the 3mc site doesn't always stay up to date.

ACG

Skye_2017 wrote: »

Thank you. I'll use it as a rough guide but keep what you've said in mind.

2-3 potential options is better than none, so it's a start! Do you think if we were to get a 15% deposit together it would open many more doors or would my credit history still be the issue? How long do you think we would need to wait before having more options?

Thanks again!

With a 15% deposit, I would be fairly confident there would be a lender for you out there.

Dandytf

ellison007 wrote: »

Hi


See link below, this is a good starting point. You need to cross reference YOUR circumstances with the lending criteria. Note tho', that the lenders' criteria is FLEXIBLE and you may be able to persuade a lender to accept you even if you fall slightly outside their lending rules.


ALSO, engage a mortgage broker - don't try to be clever & do it yourself directly via a mortgage lender. They are the professionals & a good one will help. Choose one which only gets paid IF you secure a mortgage.


http://www.3-mc.com/compare-criteria/
Thanks for the excellent link, are Scottish mortgages availabe?
Alernativley,where do I find a Scottish broker ahead of 5 yr fix finishing Jun2017.
I hope to go the Natwide online route to re mortgage, though would be interested in borrowing a few k if possible and clearing dmp once and for all, with some basic home improvements in mind.

Natwide flat value 72k
Mtg balance 45k
Overpayments reserve-1822
Sc. dmp 2012 until late 2019-no missed payments, multiple defaults.

ellison007

ACG & David White know far more than me, I am merely an average Joe looking to secure a mortgage. They are the professionals and have far more experience and knowledge than myself. The 3-mc site allows you to discern what the specialist mortgage lending landscape looks like. David is correct, criteria will change periodically etc.


If I were you, I would 'engage' with ACG or David White. I have been on this forum for a few months now - they know their stuff & seem genuine.


best of luck.

hopefulsoph

My two pennies worth!

Echo the above, when I compared the criteria on the 3-Mc site and then the website of the actual lender some of them differed. It gives an insight but before long I realised the most effective way to deal with adverse is to either wait until it's gone or get expert and specific advice from someone in the know!

That's what I'll be doing when we eventually sell and find another house. You'll often hear the brokers saying "the devil is in the detail". When I started examining my 'detail' it was clear that I was out of my depth second guessing...

Just the thoughts of someone not in the know! Also brokers will often have a look at your situation to make sure it's achieveable before you spend anything which saves the worry of getting too far down the line and being disappointed! If it's do-able happy days!

Broker-up

saheeda

Hi Guys
Just a heads up that I got an Aip last week with Halifax after having about nine payday loans in 2017
fingers crossed it all goes well and we get a mortgage