Mortgage for bad credit

Dizzybee_2

Hi there,
I have just sold my house and have 50 k deposit for a new property. I have seen a lovely new home for 350 - with the help to buy scheme I need a mortgage of about 250 ish.my problem.is - I have only secured a well paid job and have 2 outstanding pay day loans and mortgage arrears. As soon as I complete on my house sale I will pay off all of these and will have no debt whatsoever. I have no ccjs or other debt. What is the likelihood of me finding a decent mortgage. I am hoping to pay all my debts in November and buy the house in March. I will be renting until it's ready to move into. My current credit score is a pathetic 425..if I pay off all my current debt and maintain my monthly bills etc ..will my credit score go up ? Will I be eligible for some sort of mortgage x many thanks in advance x

ACG

When were the Mortgage arrears cleared?

Dizzybee_2

Because I have only just secured a better paid job - my mortgage arrears will be cleared in 3 weeks time when I complete (as my mortgage will be paid off ). I will thrn have 3 or 4 months of no debt and will pay everything on time so my credit score improves. I seperated from my husband which was the reason for the arrears.

Thrugelmir

Dizzybee wrote: »

Because I have only just secured a better paid job - my mortgage arrears will be cleared in 3 weeks time when I complete (as my mortgage will be paid off ). I will thrn have 3 or 4 months of no debt and will pay everything on time so my credit score improves. I seperated from my husband which was the reason for the arrears.

You'll need to have a clear window to demonstrate to lenders that the management of your personal financial affairs is now under control. No one is simply going to take your word. Time heals as they say.

PKaurK

Honestly, I think it's unlikely for you to get a mortgage so soon, I think you'll have yo give it a year or two. You need to evidence you can manage your finances. Having payday loans coupled with mortgage arrears makes you incredibly high risk to a lender.

Dizzybee_2

I was hoping that once I'd cleared all my debt..I may be able to use a mortgage company like precise or tml .. surely there must be an option out there somewhere. If not...I guess I'll have to wait .

YHM

Dizzy

As stated on previous. Use a broker and allow them to guide you

ACG

Im not sure you will have options using the Help to buy, but there are potentially lenders who will consider you with a 15-20% deposit - but rates will not be high street.

Dizzybee_2

Hi - I've already been accepted for the help to buy scheme .I've contacted a broker and he seems to think precise will be able to help in my case.

ACG

I am assuming you are not paying the broker any upfront fees?

I dont do help to buy, which is why I was not sure about help to buy and Mortgage arrears.

Dizzybee_2

Hi..I've not given the broker any fees yet. With help to buy..my deposit will be 25 per cent. He has.confirmed after looking at my credit file that he is.confident I am eligible.for a mortgage..so I'm really pleased. I'm just waiting to.complete then I am going to give myself between 3 - 6 months of having no debt..and lots of money in the bank..before I apply.