Bad Credit! Will I get a mortgage?

ARH1788

Hi,
I'm looking for advice or support from anyone who has either been in the same situation or works within the mortgage industry that could supply me with some information.
My husband and I have very bad credit ratings at the moment as we have been silly and got into debts in recent years. We have made the decision to turn it all around and sort ourselves out for good. The thing is that although we haven't been good with money in the past, we have always dreamed of owning our own home.
If we could buy, we would be looking to buy in about 5 years time. I know a lot of this will depend on deposit amount but I suppose I'm just asking if, in spite of our current credit rating, would it be possible for us to get a mortgage in around 5 years time? Also, does age effect whether you can get a mortgage as by this time, we will be in our mid 30's.
I'm just so worried that our bad decisions now are going to effect our future going forward. Any advice on this would be greatly appreciated.
Thanks.

ACG

What bad credit have you got? Defaults/CCJs etc?
When were they dated?
Have they been satisfied?
How much will your deposit be (as a percentage)?

DCFC79

Your credit rating wont have a bearing on it, your credit history will.

cjmillsnun

As above, what kind of adverse credit? Late payments?, defaults? CCJs? Bankruptcy?

I have 6 defaults (shortly to be 4) on my credit file, all are satisfied (paid off). I have had mortgage offers and am in the process of getting another.

Depending on how old your adverse credit is, it may be off your file in 5 years time. Be warned though, if everything is off your file, that can also be bad for you. Lenders want to see some responsible credit management.

Martin has some good guides on what will help you out.

ARH1788

Lots of defaults. No CCJ's or IVA's or anything like that. Just lots of missed payments and struggling to get straight.
Not sure about deposit yet until we get ourselves straight and start to be able to save.

Thrugelmir

ARH1788 wrote: »

We have made the decision to turn it all around and sort ourselves out for good. The thing is that although we haven't been good with money in the past, we have always dreamed of owning our own home.

Then you've already made a good start. Let your dreams motivate you. Credit history is healed with time. Tackle your historic issues first.

cjmillsnun

OK it's solvable. the defaults are registered at a point in time. The will be off your file 6 years from that date, however, you can repair things quicker by paying them.

Have a look at the Debt Free Wannabe forum on here, get a SOA done, and work out how much cash you can chuck at your debts each month. After they satisfied That money can be saved towards a deposit.

Best of luck.

Kellyanne2015

I have a bad credit history and payday loans. I own my own property, am mortgage free and looking to get a mortgage or secured loan on my property, is there any lenders out there who would accept me and my other half who also has bad credit and payday loans. We want to get out if the payday loan trap and without going into I a or debt management.

DCFC79

Kellyanne2015 wrote: »

I have a bad credit history and payday loans. I own my own property, am mortgage free and looking to get a mortgage or secured loan on my property, is there any lenders out there who would accept me and my other half who also has bad credit and payday loans. We want to get out if the payday loan trap and without going into I a or debt management.

You really should start your own thread.

What are your debts ?

Cut back on your spending.

List_Maker

I also got myself into a pickle a few year ago. 4 year old defaults, so planning to aim for getting a mortgage when these fall off. Also settled pdls that will fall off around the same time.
Saving saving saving now!!
I have seen a few posts from people who are 3-4 years into rectified bad credit situations getting mortgages through a good broker.
I got a cap one credit builder card that I pay off in full, so getting some decent newer history to go by