Adverse credit/broker advice?

Bifwif

Hello,

I’m new to the forum but I have been lurking for a while!

Basically, my husband and I are hoping to be able to apply for a mortgage in the not too distant future.

We both have adverse credit -

I have a CCJ that will be six years old in November, plus three or four defaults due to come off my credit file in the summer. One default from two years ago.

My husband also has a CCJ that is four years old, and defaults that are three years old.

Bad credit as a result of a sudden bereavement, subsequent poor mental health and a redundancy.

We have an £18,000 deposit, a combined income of £57,000 and no debt other than a credit card each. One balance of £500, one of £900.

Experian credit file looks better than Call Credit or Equifax.

We have all the necessary paperwork including three months worth of bank statements, but there is one returned direct debit to the value of £20. A stupid error where the direct debit was supposed to be changed to the 1st of the month to be in line with all of our other DD’s, but the company didn’t change the date in time. It has now been done.

Will this have a huge impact? Should we wait another three months before applying so our statements are clear? I assume we would be better using a broker but there are so many out there I’m starting to get confused.

If anyone could offer some advice I’d be really grateful. TIA.

ACG

You stand a better chance of getting accepted with a broker as your options will be limited. Have a look on google/ask friends or family.

Jaywood89

You might of been ok with the old adverse but with the returned direct debit you will really struggle.

Just wait until you have 3 months clear statements then approach a lender that specialises in adverse, they aren’t cheap though usually

ACG

Jaywood89 wrote: »

You might of been ok with the old adverse but with the returned direct debit you will really struggle.

Just wait until you have 3 months clear statements then approach a lender that specialises in adverse, they aren’t cheap though usually

The late payment may show on the credit report, not just the statements. Well worth getting your credit reports to check. If not, there is a better chance of high street rates, but I think the combination of everything along with the late payment might be a little much for high street lenders.

Bifwif

Thanks both.

The returned direct debit hasn!!!8217;t gone down as a late payment thankfully. It!!!8217;s just showing as a reversal on our bank statement.

Looks like waiting another three months for clear statements is the best option then.

Bifwif

And we will definitely approach a broker!