Mortgage with satisfied defaults

robboa

Hi guys im looking for details on if you think a mortgage is possible for me, possibly advice from brokers would be great.

Ok so a bit more detail

partner: excellent credit
me: 3 satisfied defaults from 2016/2015

£52 satisfied june 2016 defaulted November 2015
£3980 satusfied august 2019 defaulted feb 2016
£350 settled jan 2017: defaulted jan 2016

Probably looking at maybe 25k deposit and applying in March 2020

ACG

Approximate purchase price?

Chances are if the £25k represents 10% or more, you should have options at normal rates.

spadoosh

You can get a mortgage with defaults on your credit file.

Whether or not you specifically can get a mortgage will depend on a mix of the lenders criteria surrounding those defaults and you meeting their affordability criteria.

As an example if youre buying a £50k house youre probably in with a good shout (assuming a basic level of income). £500k, youll have no chance with that kind of deposit unless you earn 6 figures.

Defaults arent typically a case of being rejected for a mortgage (unless that specific lender doesnt lend on defaults) its more a case of charging you a higher interest rate. A bit like the bad credit credit cards, youll probably get one unless your financial situation is dire but youll pay over the top for that line of credit.

When your applying just make sure you use an independent mortgage broker and give them all the details.

robboa

Really no idea was hoping maybe something 250-300,000

MortgageMamma

Robboa

A good starting point for you is to see a broker. We have software that identifies the lenders who can offer you a loan. Your defaults may not be a deal breaker, but you will have better rates available to you if you wait until the one satisfied this month has been repaid for a whole year. If you can't wait that long you'll have to be prepared to pay a slightly higher rate for a couple of years.

Another factor to consider is what the defaults were for. Some lenders disregard certain kinds of defaults such as telecommunications ones.

If you see/speak to a broker, they will be able to look at your income and outgoings in detail and tell you how much you can borrow. This is known as an affordability assessment. During this process the broker will be able to give you estimates of how much it will cost per month and advise you of the longest term over which your mortgage can be taken.

Even if you are not quite ready to buy a house yet the advice would be very useful to you. I have first time buyers come to me and sometimes they don't actually buy for 1-2 years after the initial appointment. What I do at this stage is appraise them of the entire process, educate them a bit on the options they have and, if they are not quite mortgage ready yet, I give them an action plan of what they need to do/save to be in a position to buy.

I hope this helps a bit,

MM

robboa

Is help to buy available for people win satisfied defaults?

ACG

Yes, in line with lenders criteria.

Dandytf

Interesting

Am I the only one waiting until Early 2021 for last default to drop off before considering options.
Good luck OP -seems you've got some excellent choices