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First time buyers
Havnt_got_a_clue
Posts: 5 Forumite
Both me and my husband are in full time employment, credit rating is poor to fair as don't know why when he only have a car on finance, only ever defaulted on an old credit card but that's all sorted. I'm 36 he's 49 we've always private rented we have a bit of savings and really want our own place but we are not sure the way to go about it and what mortgage to go for especially with credit rating and age.
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When was the default?"Real knowledge is to know the extent of one's ignorance" - Confucius0
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Dont worry about the score. But the reason it will be poor is because of the default. Despite it being satisfied (I am assuming), the default is still showing.
It sounds like you have your credit reports, so I would just speak to a broker, hand over the reports and see what they come back with. There are not many details to go off, but general rule of thumb if the adverse is a one off small, historic and satisfied, you should have high street rates open to you.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
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Thank you yes the default is now settled, 2 years since.0
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OP. Without knowing the area of the country you would be looking to buy and your joint incomes we cannot make suggestions. One thing I do know though is mortgages don't have to be 25 years. Mine for example is 18years. 18 years would take your husband up to retirement. Why not do an AIP to see what you can get on a mortgage and have a browse on rightmove.Paid off the last of my unsecured debts in 2016. Then saved up and bought a property. Current aim is to pay off my mortgage as early as possible. Currently over paying every month. Mortgage due to be paid off in 2036 hoping to get it paid off much earlier. Set up my own bespoke spreadsheet to manage my money.0
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Why would anyone trying to get a mortgage buy a car on finance? You need to save money and buying a car on finance is one of the quickest way to waste money. Was it a new car as well?0
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Why would anyone trying to get a mortgage buy a car on finance? You need to save money and buying a car on finance is one of the quickest way to waste money. Was it a new car as well?
No not a new car when we first got it and we've had it two years now at the time we desperately needed one for my husbands work and that was the only way of getting one.0 -
Well assuming that you can buy a house where you live for around £100k you will need to save 10% of the price for the deposit so around £10,000 plus the buying costs of about another £2000. If the houses where you live are more expensive you will need to save more to get the deposit.
I am assuming that you need to do more saving than you have or you would have been able to buy a 2nd hand car for cash?0 -
Unfortunately 2 years is too soon to be applying for a mortgage after a default in my experience.
I had a default (£7.69) and it has taken around 4 years of careful money management for my credit rating to be sufficient to be approved for a mortgage. I attempted around 2 years after but was refused. Luckily my partner was able to get the mortgage.0 -
Unfortunately 2 years is too soon to be applying for a mortgage after a default in my experience.
I had a default (£7.69) and it has taken around 4 years of careful money management for my credit rating to be sufficient to be approved for a mortgage. I attempted around 2 years after but was refused. Luckily my partner was able to get the mortgage.
It's not ideal but it certainly isn't a deal-breaker at all.
As one of the posters mentioned above, speak to a Mortgage Broker, be honest and send them your credit report and your combined annual income; Gross Salary, any commissions or bonuses, any other incomes. From my experience I've dealt with a great broker and I was more than happy to pay them their fee for finding my a mortgage (I had a fair rating and a default too). They earn their money and most will only charge £250 or there abouts... they only get that when they secure you a mortgage offer.0
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