Mortgage on poor credit score help

R1876

hi I have a very poor credit score below 250 on transunion. It is because I have 6 - 8 defaults/ unknown status and 2 CJJ. they are all from 3 years ago. I was briefly out of uk and these are all small credits had then. They add up to roughly 3000 pounds. If I pay all of them in full, how long until I can expect at least a fair credit score and maybe apply for mortgage?

I don't have any loans or credits now except my car insurance which I pay regularly. If I pay all my debts on credit score, can I expect my score to be fair in few months? anyone with similar experience?


I have deposits and want to buy a house next year with 80% L to V ratio. If i pay and clear all my defualts and CJJ how likely can i get accepted? I am appying with my partner who has a good score.

Mortgage_Adviser

If the income is sufficent you should have a reasonable chance although probably not with a high street.
You would havea few options now as well, based purely on what you said.

RelievedSheff

Speak to a mortgage broker. You may find that you can get a mortgage now although it won't be at high street rates.

This is what we did. I had one unsatisfied and one satisfied CCJ on my credit file from 2013 and 2015. We got a 2 year fixed mortgage at not a great rate to secure the new build home that we really wanted.

We are over 6 months into this deal now and by the time we come around to remortgaging in March/April 2021 we should be able to get high street rates again and significantly reduce the mortgage term while still keeping the same mortgage payment.

Retired_Mortgage_Adviser

Based on the limited information in your post and assuming affordability (income/exp/loan size) stacks up, you might be able to access an 80% LTV mortgage through a handful of lenders.

As ever, the devil lies in the detail and you would be best advised to make an appointment with a whole of market broker who can consdier the whole of your circusmtances and give you an idea of where you stand.

ACG

I would expect you to be able to get a mortgage now. Hit and miss as to whether you are looking at normal rates or circa 3-3.5% but nothing too horrendous, you probably need a broker though.

Electech

Hi all ,

Looking into a residential mortgage in the name of my limited company that i’m the soul director . Can someone shed some light on whether this is possible and what tax implications there could be ?

Many Thanks

Thrugelmir

Settling your debts will at least enable you to move on. Should be actioned as soon as possible. Your credit history is what it is. Ignoring the issue for 3 years reflects on you as a potential borrower. Financial relationships are built on trust. You need to start the process by showing responsibility for your own actions.

ACG

Electech wrote: »

Hi all ,

Looking into a residential mortgage in the name of my limited company that i’m the soul director . Can someone shed some light on whether this is possible and what tax implications there could be ?

Many Thanks

I cant think of how to answer your question other than with a slightly sarcastic question back....

How can a limited company take out a personal mortgage? Is the limited company going to live there?

I really hope someone doesnt come back now and say it can be done and make me look like a right tool.

MovingForwards

Electech wrote: »

Hi all ,

Looking into a residential mortgage in the name of my limited company that i’m the soul director . Can someone shed some light on whether this is possible and what tax implications there could be ?

Many Thanks

Start your own thread and people can give you advice.

daniele9390

I had the same issue and wrote up a letter saying "I'm trying to get a mortgage, please, is there anyway you can remove the bad history that I have with your company", and I sent it to every company that I had a defult from a while ago with, and 5 out of 7 removed all history, and made my credit score go up by 450 points and it only took around 4 weeks for this so I'd give this a try first

Follow this link and it has the template on there, it's definately worth a try! https://www.clearpoint.org/blog/how-to-write-goodwill-letter-diy-credit-repair/

KeepOnKnitting

ACG wrote: »

I cant think of how to answer your question other than with a slightly sarcastic question back....

How can a limited company take out a personal mortgage? Is the limited company going to live there?

I really hope someone doesnt come back now and say it can be done and make me look like a right tool.

I will make you look like less of a tool. Electech, do you have a jazz director, and a rock 'n' roll director, and maybe a classical director as well? Can they not help with the application?