Mortgage advice

Scaff

Hi,

Is it true lenders only really look at recent credit history? Recent as in the past 3 years. Hoping to get a mortgage end of the year/start of next and my credit history for the past 3 years is clean as a whistle but the 3 years prior to that is pretty shambolic, made up of defaults, plenty of arrears and a debt management plan resulting in a poor score but I am aware that lenders don’t actually see the score. The debt management plan will be removed from November this year as it’s satisfied and that is the 6 year anniversary so to speak.

I was under the impression that it would be fine once the debt management plan was off but having recently spoke to a mortgage advisor I was informed he didn’t share my confidence so just looking for any advice from anyone been in a similar situation.

Thanks

[Deleted User]

Correct - history and data only.

Not the score.

If your broker or advisor is telling you to improve your score specifically then look for another broker or advisor.

boo_star

It's certainly not true that all lenders only look at recent history, with some lenders any adverse information will be the kids of death, others are much more lenient.

With a DMP in your past (and all the defaults that come with it) you should look for a broker specialising in bad credit clients, more mainstream brokers will have little experience in this or less inclination to deal with it.

Scaff

boo_star wrote: »

It's certainly not true that all lenders only look at recent history, with some lenders any adverse information will be the kids of death, others are much more lenient.

With a DMP in your past (and all the defaults that come with it) you should look for a broker specialising in bad credit clients, more mainstream brokers will have little experience in this or less inclination to deal with it.

Thanks for the reply!

Ok, only one account is in default and that was satisfied in December 2014.
Another two with arrears on them of 6 months or more but no default registered - satisfied and closed in feb 2016 with late payment first registered in November 2013 - one of these has a DMP in the credit file only through one CRA but same again satisfied in Feb 2016.
And the last is an arrear of 6 month or more satisfied September 2014.

Think the reason they are 6 month arrears rather than defaults is through the debt arrangement scheme but unsure. The scheme was a bit of a sham and I ended up cancelling it and paying the debts myself when I had the money as they were taking around 30% to themself.

boo_star

Scaff wrote: »

Thanks for the reply!

Ok, only one account is in default and that was satisfied in December 2014.
Another two with arrears on them of 6 months or more but no default registered - satisfied and closed in feb 2016 with late payment first registered in November 2013 - one of these has a DMP in the credit file only through one CRA but same again satisfied in Feb 2016.
And the last is an arrear of 6 month or more satisfied September 2014.

Think the reason they are 6 month arrears rather than defaults is through the debt arrangement scheme but unsure. The scheme was a bit of a sham and I ended up cancelling it and paying the debts myself when I had the money as they were taking around 30% to themself.

Just have a look for a broker specialising in bad credit. I suppose some people just can't be helped but whoever you have used recently seems to have been unusually dismissive.

PixelPound

boo_star wrote: »

It's certainly not true that all lenders only look at recent history, with some lenders any adverse information will be the kids of death, others are much more lenient.

With a DMP in your past (and all the defaults that come with it) you should look for a broker specialising in bad credit clients, more mainstream brokers will have little experience in this or less inclination to deal with it.

kids of death :rotfl:

PixelPound

Scaff wrote: »

Thanks for the reply!

Ok, only one account is in default and that was satisfied in December 2014.
Another two with arrears on them of 6 months or more but no default registered - satisfied and closed in feb 2016 with late payment first registered in November 2013 - one of these has a DMP in the credit file only through one CRA but same again satisfied in Feb 2016.
And the last is an arrear of 6 month or more satisfied September 2014.

Think the reason they are 6 month arrears rather than defaults is through the debt arrangement scheme but unsure. The scheme was a bit of a sham and I ended up cancelling it and paying the debts myself when I had the money as they were taking around 30% to themself.

How urgent is the mortgage and how much deposit do you have lined up?
As you file is the last six years, things will fall off the longer you wait, so there can be an argument of waiting another 18 months.
A linked factor is also your deposit. When going for a mortgage LTV can be key, especially with less than stellar credit history. That is the bigger your deposit (in LTV terms) the less of a risk it is to creditors and so you may be more likely to get some high street lenders (rather than adverse credit) willing to accept you. If your LTV is high (low deposit) then the argument for waiting another 18 months to build up a larger deposit whilst the default falls off becomes stronger.

Of course most people asking about mortgages are wanting to apply soon, so it can be a question of whether you want to wait or accept a higher APR now to get a house sooner.

Definitely get a broker, and sound out several before choosing. You might not need to go for adverse credit loans and many that say they deal with poor credit just go straight for adverse credit lenders. Why pay 15% or 20% when you could get a standard mortgage for a lot less.

boo_star

nic_c wrote: »

kids of death :rotfl:

I didn't even see that. Thank you autocorrect for making me look like an idiot