AIP declined

Pixie5740

Hammath wrote: »

Also weather my defaults drop off in Jan and improve my credit rate and open me up to better rates with a high street lender is basically guess work.

It's not guesswork. Defaults remain on your credit files for 6 years, after that they no longer show. No defaults on your credit files looks better to lenders than defaults on your credit files....fact not guesswork.

Your credit history is just one part of the equation though. Lenders will also assess you on affordability and past dealings with them.

spadoosh

Hammath wrote: »

100% I should have cleared them sooner. Buried my head in the sand when I was younger and I won't deny that.

The only reason to try and progress sooner than when the defaults drop off I'd the house we have seen. I may well find a suitable house in 6 months time but not in this location at this money.

I'm looking to borrow 135k with 15k deposit and currently pay £550 a month rent.

Usually better getting an AIP before you start looking. Round here most estate agents are reluctant to deal with you if you dont have one. They will but theyre awkward about it. The main reason though is it stops you building your hopes up without having at least an informal agreement suggesting its doable.

Hammath wrote: »

Also weather my defaults drop off in Jan and improve my credit rate and open me up to better rates with a high street lender is basically guess work.

Not really. Youre default will drop off your credit report after 6 years from the date of default (give a few months for updating the records). The numbers youve given dont seem to work. If your last one was at some point in 2014, itll drop off at some point in 2020.

A default is a known obstruction with getting a mortgage. You remove the obstruction you increase the likelihood of getting approved.

Its upsetting being told you cant have a mortgage. We found out we couldnt get one due to a default on my OHs credit file. We made the same mistake of not getting an AIP before picking the house. And the first we knew of the default was when we said we wanted to make an offer and sat down with the broker. The default was a result of fraud so we where completely oblivious to it.

we got the default removed within 6 months but was more conservative going forward. A year after the dissapointment we found a house that was much better. Helped by the fact that we where in a better financial position as we had longer to save and recieved pay rises during the year. We where so nervous when applying we assumed we wouldnt be accepted again. It went through without the slightest hitch.

Youre history shows you tend not to handle money very well. Not trying to say this to put you down but to show the reality of how lenders see you. Even ignoring the lenders view point for your own personal benefit you should be looking at getting yourself in the best financial position before buying a house. If youre stretching yourself at the start it only compounds the problems going forward.

I would be looking at using the deposit money to pay off any debt that is charging interest and doesnt have much in the way of early repayment charges. The credit cards and store accounts can almost certainly be got rid of immediately. Ok you wont then have the deposit to buy the house but you dont have the mortgage to buy so cant get it anyway. From there use the money that youre saving each month not paying debts to rebuild your deposit. By the time youve got the deposit built back up the defaults will be gone, youll have little in the way of debt and youll have your 10% deposit. At that point your someone applying for a mortgage in a healthy financial position with no defaults and little/no debt. Youll be attractive to most lenders.

Dont be too disheartened by it. Theyve said no for a reason. As dissapointing a reason as it is, its done to prevent you being in a bad position. Ok the main reason is to prevent the bank being in a bad position but if it gets to a stage where theyre in a bad position, youll be a in a terrible position.

Carrot007

Hammath wrote: »

£2500 owed over 2 shop accounts (very + next)

At a very ;-) minimum pay this off yesterday. (and close the accounts to stop it happening again).


Probably the credit cards too. Or at least to under 50% utilisation (otherwise you are looking desperate).


Then save up a deposit again.


Your mortgage is probably going to be around £800 with your history so be aware of that.