Does an adverse history credit tend to significantly affect maximum mortgage loan amount offered?

edlondon

I recently posted asking for some advice on whether I would have any chance of getting a mortgage with my adverse credit history:
https://forums.moneysavingexpert.com/discussion/comment/79330689#Comment_79330689

I am very grateful for the helpful responses I received, which suggested I might be fine with a specialist lender like Precise or a building society. There is one other thing I should have asked: Does having adverse credit (in my case, 2 x defaults from 4 years ago and 1 default from 5 years ago (all part settled / satisfied), a DMP completed two years ago and payday loans from 5 years ago) tend to affect how much lenders will lend you?

In my case, I do have a decent deposit (20%), but I would need a loan amount of 4 - 4.5 x salary in order to buy a property in the area I want (my deposit represents 20% of a property price assuming I could get a 4.5x salary mortgage). From calculations online, I do not think affordability would be an issue due to my current outgoings. Do you think I would stand a chance of getting 4 - 4.5x salary, or do lenders tend to offer lower maximum mortgage loans in cases like mine?

thanks again.

MovingForwards

It doesn't make much difference whether it's mainstream or sub-prime, especially with aged blips.

I still could have gone for a property 4.5x my salary with my sub prime lender and that was with a satisfied CCJ and defaults etc.

ACG

Up to 4.5x salary should be doable in the same way it would be with a "normal" lender - ie if you are on £20k and are paying out a grand a month on credit cards, your not going to get 4.5x income with anyone. If you are on £20k with no debts, no kids and are under 40, you are probably going to get 4.5x income with bad credit/no bad credit.