3 defaults , multiple PDL and missed payment mess

Mending_and_hopeful255

Hi I'm looking for abit of advice . After reading what felt like every post on MSE of people in the same issue, I am.aware it's very much on personal circumstances and history and probably abit of luck! Just looking for some general advice on my situation. 

Previously had no credit issues in the past . Until 2020 when my now ex husband started taking loans in my name without me knowing . This lead to multiple missed payments . We split up and I.moved out zero savings with not one piece of furniture and 2 kids to pay for. Had to furnish a full flat also.  Basically to cut a long story short I have ended up with a horrendous list of ; 

3 defaults- capital 1 - 200 
                    Eon- 700
                     Loans2go- 400

Countless missed payments on PDLs, 5 pdl in total highest being £400 which are all paid fully and special arrangements on very which is now all up to date and defaults all settled and was also living in my -800 Overdraft permanently.  

I got a sum of money in march 2022 from my ex buying me out which I used to clear debts. 

The only debts I have now are;

Very - £150-  paying to have some sort of regular payment record 
Credit union loan-@ £50pm- £1024 left to pay total and never missed a payment 
Mobile phone bill. 

I hate the situation I've ended up in but only time will heal this.  I am wanting to know that with this history which ws all settled fully March 2022. What are the liklihood of me obtaining a mortgage with my partner in 1 year. Is this achievable  ? Obviously with no missed payments or issues goijg forward. I don't hold much hope . 

My partners credit rating is great his only debt is his phone contract and car finance. Never missed a payment for anything.  Both renting and would have a deposit of up to 30k looking to buy around 200k max. Our joint income is 50k

Appreciate if anyone can help. Sorry for the length! 

K_S

@Mending_and_hopeful255 If I've read it correctly, you intend to buy after April 2023, by then you'll have a 1+ year clean credit history and a 15% deposit.

Based on the limited info in your post (and assuming lender criteria is similar to what it is now), you *should* have options at that point.

In the meantime, just take extra care to make sure you keep your credit files squeaky clean, avoid taking out short term loans (it's not alway easy to identify what a lender may consider as a pdl) and try to come out of permanent OD usage.

Good luck!

ACG

A lot depends on when the defaults were registered. 

Assuming you are buying next year and they will all be 3 year +, I would say you stand a pretty good chance at normal rates. If they will be less than 3 years old, you should still be able to get a mortgage, but you may find rates are higher. 

As you say, the details matter. the arrears could come into play also and affect the options. You really need to just keep doing what you are doing and then a little closer to the time, get your credit report and speak to a broker. I think a lot will change between now and the end of the year, things could tighten up. 

Mending_and_hopeful255

Yes that's correct around April next year. No longer have the Overdraft now as I paid it off. Never ysing.payday loans again and want to try mend my file back to pre 2020 status ovet time.

The defaults are registered from Aug sept Oct 2021 and were settled March 2022. Now showing on my credit file as settled . 

At this point I don't even know if I would get any mortgage. I'd be happy paying higher rates if it meant I was on the property ladder as over time I would eventually to get better rates. I just feel things are that dire they wouldn't even consider.  

ACG

Ah sorry, I misread or misunderstood.

I think normal rates are unlikely. With a 15% deposit, I agree with KS, there should be options but its not a given and if there are any other issues or quirks you might struggle.

Mending_and_hopeful255

I feel I've gave all the information on this post and no other quirks. All the mwss was cleared in march but just now sure if 1 year clesn record is enough proof for mortgage companies! I suppose time will tell. My plan is just to continue with no late payments, and to only have very account , mobile phone and the credit union loan. 

simon_or

OP, I think most people overestimate how bad their mortgage chances are.

The only non-negotiable is usually the deposit size, as long as that's large enough and rate isn't an issue, you will find that the right bank will lend to pretty much anyone.

At least that was my experience from 2015 when my file was absolutely dire and I was fairly newly self employed. I was shocked to hear that this bank Together would lend to me, even though it was at an usurious rate. I never went ahead as my partner refused to countenance it.

Mending_and_hopeful255

Thanks for the insight Simon! This is what worries me also if they ask for scary big deposits.  I suppose its something at the time I would need to see. 

I really hate myself for the whole situation but doing everything I can to mend it. I suppose in these circumstances time really is a healer . Just hoping a year /year and a half will be sufficient time . 

MovingForwards

Even if you do end up with a sub-prime lender / less favourable rates, it's not forever. Remortgage after a couple of years to someone else.

I took a 5 year fixed rate sub-prime mortgage, 2 years have flown by. I didn't think about the rate when taking the mortgage, main thing was I got it and the property I wanted. I could remortgage to a mainstream lender and pay the ERCs.

Mending_and_hopeful255

Yeah even a sub prime lender I would be happy if I was able to get a 15% deposit considering my circumstances. 

My fear is being told no my credit is too much of a mess and having to wait a long long time until I can buy. 

sammyjammy

Get the Very account paid off, interest rates horrendous, if you want some kind of credit get a credit card and pay off in full every month.