Bad/No credit, but large deposit. Any hope?

jmd4211

Hi There,

Was looking for some advice for the multiple experts that reside on these forums!

I am 28, from the UK, and have lived in Ireland for 4 years. A have recently come in to a considerable sum of money (£150000) which I want to use for a deposit for a flat in London (I am moving back to the UK next year.)

I have 2 concerns - I had very poos credit before I left - lots of defaults, collection agencies etc, though no CCJs. Also, I haven't 'existed' in the UK for 4 years. I have perfect banking record in Ireland (if thats in any way significant?)

When I can show that I have a decent permanent contract of employment in London (Should be around £30000 pa), surely the risk to any lender would be minimal enough to make it OK for me to get a mortgage of around £75,000. (Given that they willm effectively own a £220,000 property in return for lending £75.000).

What do people think about this situation?

Thanks

James

herbiesjp

Hi James

You should have no problems at all in getting a mortgage.

I would suggest getting an up to date copy of both Equifax and Experian credit reports - recently had several cases where lenders have asked for extra information as the details held on each credit file differed, and potentially could have caused problems for the clients, if not addressed straight away.

Depending on the information on your credit file, it may impact on the rates available, but I would thik you should have a good chance of getting standard high street rates

Dan_Collins_2

herbiesjp wrote: »

Hi James

You should have no problems at all in getting a mortgage.

I would suggest getting an up to date copy of both Equifax and Experian credit reports - recently had several cases where lenders have asked for extra information as the details held on each credit file differed, and potentially could have caused problems for the clients, if not addressed straight away.

Depending on the information on your credit file, it may impact on the rates available, but I would thik you should have a good chance of getting standard high street rates

Nice post!

jmd4211

Thanks for the re-assurance. I was dead worried about this! I suppose that, worst case scenario I could get a bad credit mortgage, rebuild my credit history over 3-4 years, and then re-mortgage.

Dan_Collins_2

Try the Coventry BS, on some of there schemes adverse of 3 years or more ago are normally ignored, if you are up straight you may get high street rates!

herbiesjp

jmd4211 wrote: »

Thanks for the re-assurance. I was dead worried about this! I suppose that, worst case scenario I could get a bad credit mortgage, rebuild my credit history over 3-4 years, and then re-mortgage.

Nobody can really tell without seeing what your credit file looks like, but there are lenders that are more sympathetic to adverse history before applying "sub-prime" deals to the applicant

I would suggest running the credit file past a fee free whole of market adviser, to see what they can find for you - most should explore high street deals for you first. Make sure they discuss verbally with the lender first, before carrying out credit checks, as too many credit checks can impact on your credit score, and if it is already low, may impact on deals that could be offered to you

fistfullofdollars

I'm confused re the debt. Is it still outstanding i.e. have you settled all your accounts and the ones with the DCAs?

If not, why not use some of the money to sort out full and final offers with your creditors.