Bad credit mortgage options

Sprigg

Hi all. Long story but will try to keep short as possible!

So when I was 18 i let my mother take some stuff out in my name, she missed payments and had some stuff default. I was dumb and didn't know what credit even was. Due to this, I found out that my credit score was very low. I paid every one off a couple of years ago. Or thought I did till we went to mortgage broker last year and found out there was another of around £100 and paid that last Feb.
First broker was useless really, we got reject from high st banks and jist told us to re apply every 3 months ... I've got my score from the very poor bracket to fair on Experian (812) but it is now stagnating.

Recently went to a high street broker that was offer free advice and they tried a specialist lender at a rate of 4.8% though I don't think they tried anywhere else.

Do you think it would be worth going to a specialist broker, would there be potential for a better rate mortgage for us? (Partners credit is good) for what we're looking for we could put down around 17% deposit. 

I'm aware due to my credit we will need to pay higher rate, but was wondering if there was anything better than that one? I also seen some places are willing to look at individual cases, but idk how likely that is.
Thanks 

ACG

How many defaults are still on your credit report? 
When was the most recent default registered? 

A 15% deposit is generally regarded as the minimum for more than the odd blip. It sounds like your adverse has been registered a good few years so I reckon you should have options. 

4.8% seems maybe a touch on the high side, but probably not significantly - although I am working on the assumption there are maybe 3-4 (if not more) defaults registered over 3 years ago. The devil is in the detail. 

There is no harm getting a second opinion if you are not sure about the broker you have recently visited but making a few assumptions it does not sound like they are a million miles out. 

K_S

@sprigg There isn't enough information in your post to express an opinion on whether the broker has found you the "best rate" for your circumstances. If you think that that may not be the case, then you should consider getting a second opinion.

[Deleted User]

Your credit "score" is irrelevant, no lender ever sees it and it is never used on any decision to lend. The data on your file is used by lenders to score you using their own system. If all the bad credit was taken out when you were 18 and you're looking to mortgage, how old are you? They will all disappear when you are 24 (6 years after the default) so why not keep saving and wait until then

Sprigg

Hi everyone. 

So there was several from the age of 18, sorry for not being clear. I'm 26 now. But I wasn't aware of some money being owed so these lasted longer than the end term

Virgin media had several late payments. It say it was closed in 2018 on report.

Tesco mobile has several missed payments, was then defaulted. I paid this off when I found out and was closed in 2019.

I had another payment defaulted and only seen this last Feb unfortunately and paid this, and this was settled in Feb 2020. So, annoyingly they are recent in terms of being settled.

Thanks, I am currently trying to find some brokers for adverse credit!

ACG

The settled date is not important. It is the registration dates for defaults. 
It is still not clear what is on your credit report, assuming the only thing in the last 6 years are the late payments with Virgin then the rate you mentioned is high. 

I think you need to just put your report in front of a broker as they can then just look for the bits that are relevant. 

scoey8

My partner had bad credit (5 defaults all unsettled 3-6 years old) and we managed to get a mortgage through Vida at 3.69%. I know a very helpful broker but not sure if I can recommend on here. 

amnblog

Your posts suggests this is a more simple situation that you have been led to believe.

The Broker who told you to apply every 3 months was clearly a certified idiot.

As stated above what is key is:

• When the defaults went on your file
• What they were in connection with
• How much they were for

If and when they were settled would be a factor but not a key one.

Consult a good Broker and this could be sorted in a few days putting your mind at rest.

You would do well to consult ACG above.

Sprigg

ACG said:

The settled date is not important. It is the registration dates for defaults. 
It is still not clear what is on your credit report, assuming the only thing in the last 6 years are the late payments with Virgin then the rate you mentioned is high. 

I think you need to just put your report in front of a broker as they can then just look for the bits that are relevant. 

Sorry I was not aware of this.on my Experian report it says time since last default was 4 years 4 months ago. Have put some feelers out. Thank you