What’s my chances of getting a mortgage?

Lagroid

Hello,

I’m wondering if the community can offer me the best advice in my not so great situation. Below I’ll provide a bit of context.

I’m a 27 year old male working in the software dev industry. I’m on about 27k per year currently but this is frequently increasing year on year. I have a secure job which I’ve been in for over a year now (no probation periods).

I started a business before this job and to cut a long story short, it fell apart and I stupidly took out credit cards at the time to cover my living costs.

To cut an even longer story short, I fell into depression and defaulted on all 4 credit cards. 3 of them I’m now paying back (to creditors) so these show as 3 defaults on my credit file, and the other went to a CCJ (I only found this out this week, as the CCj was sent to an old address).

My credit score is poor at the moment.

I want to save up as much as I can over the next 2/3 years (based on my outgoings I should be able to save between 10/15k in that time, possibly even more) and then try get a mortgage.

I’m fully aware it’s unlikely I’d get a mortgage with the CCJ, but not sure if it’s worth applying for when the time comes, or if I should wait till my credit file is clear and apply then? It’ll be about 5.5 years before my credit file is clear, so in 2/3 years it’ll be about 2.5/3 years.

Any advice/guidance would be greatly appreciated.

All the best,

RelievedSheff

It is possible to get a mortgage with a CCJ it will just be at a higher interest rate.

We got a mortgage in April this year and at that time I had an unsatisfied CCJ and a satisfied CCJ on my credit file. (The unsatisfied CCJ has since dropped off my file)

Lagroid

Thanks for your reply.

If you don’t mind me asking,

How much was your CCJs for?
How much was the mortgage for?
How much of a deposit did you have?

All the best,

RelievedSheff

The unsatisfied CCJ was for £430 and the satisfied one for £235.

We had a 10% deposit on a new build house with a sale price of £210k.

spadoosh

You can get a mortgage with defaults and ccj's.

Itll be considerably harder and more than likely a lot more expensive than getting one without them though.

Your current plan doesnt sound that unreasonable just need to get steady with the credit file.

2-3 years can be a long time with lots of changes. Id work on making sure everythings paid and seeing where i was in a few years. All going well and the market being suitable there should be a lender for you. Worst case you just keep building your savings and buy in 6 years.

Eg if you had £15k deposit and a £27k salary and buying a house worth £50k most lenders would be more willing to take you on. And more forgiving of the bad credit. Some will still outright refuse you though.

If youve got a £15k deposit, £27k earnings and wanting to buy a £200k house with bad credit its almost certainly not going to happen.

dimbo61

So Save Save Save and make sure you pay all your bills on time to build up your credit score.
You can normally get 4.5 X your salary when you are trying to get a mortgage but having 10/15% deposit will help with your poor credit history

yksi

Do your housekeeping - go over the credit reports with a fine-toothed comb and set all the addresses to the same, current one. Get on the electoral roll. Examine your spending for ways to cut down and wipe out as much debt as you can as quickly as you can. It will have a second bonus and that is, spending less will eventually help you save a better deposit.