Broker help !?!

gemstar28

We are first time buyers with 9 defaults ranging between 17-24 months old. Some satisfied other still being repaid.  They can all be attributed to a life changing event. No late it missed payments since that date.

 We have £30,000 deposit (Saved over last 12 months) with potential to be gifted up to £5k more from parents.

We’re looking to buy our rented house which will be valued at no more than £230,000.

Income combined is £105,000pa both relatively secure industries.

We’ve spoken to 3 brokers and all have said there’s nothing for us unless we can raise 25%

Are all doors really closed for us? 

[Deleted User]

you are looking at less than a 15% deposit which limits you to probably about 5 lenders at the moment and none of which are interested in any adverse beyond maybe a single small mobile phone default perhaps.   If you made it to 15% then you have a couple of lenders who run on overall credit scoring so dont have any specific requirements on defaults satisfied or not. Saying that, i cant see you getting through the increased scoring requirements with 9 defaults. 

Best option would be to use a lender who doesnt credit score and might take an explanation for the adverse and see past it.  You are going to have to go a long way to explain how you are earning over 100k a year, have saved 30k deposit but havent paid off your debts though.   I cant see them being overly keen on that. 

The real specialist lenders have had to cut their cloth at the moment and wont do anything near what they would 6 months ago. 

I would expect you to have to:

1.  clear the debts
2.  wait a few months for lenders to return
3. Get at least a 15% deposit together

haras_n0sirrah

The main issue will be that the defaults are not paid off. As a minimum you will need to settle them and have a 15% deposit
basically agreeing with Deleted_User above me

gemstar28

Thanks both that makes sense. We will now focus on clearing the defaults, we haven’t always had this level of income as during 2017/18 I needed to take a career break to be honest we never paid them off because a year ago we were told it wouldn’t matter and to put all our money into saving a big deposit.

So... it looks like yes doors are closed but we have a few months to try and resolve some of these issues and hopefully when market comes back we can proceed.

haras_n0sirrah

It was unfortunate you were given that advice. lenders want defaults satisfied prior to application unless looking at really heavy adverse lenders who have pretty much pulled out