Adverse credit lenders

Mum2Boys_2

Hi All
my sister and myself are looking to sell my property and buy a larger one. 

I have recent defaults and am currently going through a DMP. 

The information below is our situation 

Wages- 

P1-32000

P2-30000

Child related income- £5200

Deposit-£50k

Dependants-3 (14.13.10)

Debt

P1-£45000 (to be cleared on completion)

P2- £25000

Credit scores

P1- poor with recent defaults and missed payments

P2-good but near to maxed out. 

We are looking to borrow £250k (give or take)

I will be selling my current home and consolidating debts so I will have none, this will leave us with £50k deposit (minimum) taking our purchase price to around £300k

What are the chances with my credit rating even though I’ve never missed a mortgage payment (in 10 years) and will clear all debt I owe? 

Any information or recommendations on adverse credit lenders would be kindly received. 

ACG

Can you expand on this:
P1- poor with recent defaults and missed payments?

When were the defaults registered? 

K_S

@mum2boys_2 With an ongoing DMP, significant levels of outstanding debt and recent defaults, you are looking at a lot of important criteria with respect to the mortgage.

Respectfully, I would strongly recommend against trying to DIY this. Consider speaking to a couple of experienced specialist brokers and see what they say, there is a lot more background detail to be considered before you can get a realistic idea of whether a mortgage is possible and if so is it at a cost that you can stomach. Good luck!

Mum2Boys_2

The defaults are recent, the past few months, this is due to covid. 

I am definitely not wanting to DIY this and am aware I need to go to a specialist broker, I’m also aware I’m likely to pay a higher interest rate. 

I currently have around £100-£110k equity in my current property and am looking to clear my debt so I’ll be starting a fresh with just my mortgage going forward rather then having a dmp for 10+ years. 

K_S

Mum2Boys_2 said:

The defaults are recent, the past few months, this is due to covid. 

I am definitely not wanting to DIY this and am aware I need to go to a specialist broker, I’m also aware I’m likely to pay a higher interest rate. 

I currently have around £100-£110k equity in my current property and am looking to clear my debt so I’ll be starting a fresh with just my mortgage going forward rather then having a dmp for 10+ years. 

@mum2boy_2 Unless the very recent defaults (last 6 months) are small and/or related to phone, utilities accounts, etc, it's a really tough ask.

As of today, you are likely looking at maybe a couple of lenders who may consider at quite high rates. Even for that you will likely need the defaults to be satisfied.

Mum2Boys_2

Even though I intend on clearing all debt once my house has sold to buy the new one?