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Bad Credit - Good Mortgage obtained

edited 30 November -1 at 1:00AM in Mortgages & Endowments
15 replies 1.5K views
scotgal30scotgal30 Forumite
72 posts
edited 30 November -1 at 1:00AM in Mortgages & Endowments
Before I applied for my Mortgage with my partner I was going through hundreds of threads trying to work out my chances of being able to obtain a mortgage, stressing out due to our not so perfect credit history past. I thought I would update so anyone who is in a similar boat to us can have some hope!

My partner and I put a reservation down on a New build in Scotland and arranged a meeting with a free brokers. They were fab, super helpful and very informative.

Our credit history. We both have not had perfect Credit History between us:
x1 Credit Card default: Registered & satisfied 2015 = £400
x1 Telecoms default: Registered & satisfied 2015 = £350
x1 Mobile Contract Missed payments: Registered 2015
x1 Telecoms default: Registered & satisfied 2016 = £210

Current: partner has CC balance of £740 on it and I have a loan i pay back monthly £1995 outstanding. (this is the only credit we have now)
My partner also had not been registered on the electoral roll register for 1 year!!

We managed to obtain a mortgage with a 15% deposit on a home worth over 200K. With a 1.69% interest rate. The only condition we have is to clear the CC debt.

It was stressful, it was worrying but we got there! :T
We applied on the 1/10/18 and had our offer back to us by 10/10/18.

If you have any questions, please do ask. And Good Luck!! :beer:
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Replies

  • Congratulations and thanks for sharing.



    Which mortgage company is it?
  • Thank you! It was Nationwide Building Society.
  • Well done.


    Did you use a broker?
    Thinking critically since 1996....
  • Yes, we used First Mortgage brokers :)
  • That is good to hear. I have applied through Nationwide myself. Got a DIP accepted after referral for £370k a few months ago (someone beat us to that place) so having to apply again for £385k on a place where we have had an offer accepted.

    My credit record isn't perfect, mainly due to a Vodafone work contract getting into areas in 2016 - I had no details so I cancelled direct debit assuming they would get in touch and forgot about it until I checked my credit report - amount was about £150.

    I have a £100k deposit and I believe my affordability is good: £105 - £110k salary (90 basic and rest profit share) so I am hoping that'll help get me through.

    Do you have to send them proof of the cc debt being settled?
  • edited 12 October 2018 at 1:34PM
    kwame41kwame41 Forumite
    168 posts
    edited 12 October 2018 at 1:34PM
    Congratulations on getting the Mortgage. Im sure your both very happy.
  • Frankel17- I’m not entirely sure but we will pay it off and ask the CC company to send a statement showing this. And if the mortgage company wish to see proof we will have our solicitor send this to them.

    Good luck with your process :)
  • scotgal30 wrote: »
    Yes, we used First Mortgage brokers :)


    That's good to know. I only asked because it's good for other people to see how useful they can be, especially if it's a complex/difficult/unusual case.
    Thinking critically since 1996....
  • My husband and I have been in debt for a number of years and it got to the point that I had to take out a DMP which is currently ongoing. Since this my husband has taken ill and has been unable to work, we are just about scraping by on my salary and continuing to meet our commitments however we are tired of how tight it is every month and don't have any fallback for emergencies, literally all my salary goes on bills so there is nothing left for anything else.

    We feel the answer would be to sell the house - this would mean we could pay the remaining debt off in full and also have equity remaining - the big question is - would we be able to get a mortgage again? I know the credit rating is cleared after 6 years but I am 46 and my husband is 52. We are concerned we will never get on the market again.

    Should we just carry on so at least when the debt is paid off we have our house or should we just cut our losses? The big concern is we don't have a pension either so the house was our back up for the future. Any advice is welcomed!
  • Hi Boooin, I think you would be best advised by going to a mortgage broker, they will be best placed to recommend you. Go with someone who covers whole of the market. I’m not sure where your bases but we used First Mortgage who we didn’t pay for their services (mortgage companies pay them for the introduction) so their really going to try and work hard for what you need.

    Good luck and I wish your hubby a speedy recovery! :)
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