Getting a new mortgage with previous bad credit

JadeAlex26

Hi all,

So I got myself into a stupid financial situation a few years ago. Won't bore you all with the details but I had a sudden break up prior to a planned wedding, I was in an awful place mentally and could t afford the house I was left to deal with so I ended up with payday loans and all that fun stuff.. 

It snowballed, as it always does, and I had a lot of missed payments around 2017/2018. 

The house finally sold in June this year (long story short my ex moved back into it and refused to deal with it, I couldn't contact him etc) 

Anyway, the sale was at a good time, I got a good amount of money out of it and I am now completely debt free. I also haven't missed a payment on anything for around 2 and a half years. 

I'm wondering what are the chances of me actually being able to apply for a mortgage with my current partner..

For details, I earn £28k, my partner £18k. I have a £15k deposit and houses we can see in our area range from around £80-130k, depending on work needed etc.

I hate that I got myself into such a stupid situation but glad I'm out the other side of it now. I just know that my financial history will still affect me, but I don't know to what extent. 

Thanks for reading, and any advice would be hugely welcomed 

K_S

JadeAlex26 said:

Hi all,

So I got myself into a stupid financial situation a few years ago. Won't bore you all with the details but I had a sudden break up prior to a planned wedding, I was in an awful place mentally and could t afford the house I was left to deal with so I ended up with payday loans and all that fun stuff.. 

It snowballed, as it always does, and I had a lot of missed payments around 2017/2018. 

The house finally sold in June this year (long story short my ex moved back into it and refused to deal with it, I couldn't contact him etc) 

Anyway, the sale was at a good time, I got a good amount of money out of it and I am now completely debt free. I also haven't missed a payment on anything for around 2 and a half years. 

I'm wondering what are the chances of me actually being able to apply for a mortgage with my current partner..

For details, I earn £28k, my partner £18k. I have a £15k deposit and houses we can see in our area range from around £80-130k, depending on work needed etc.

I hate that I got myself into such a stupid situation but glad I'm out the other side of it now. I just know that my financial history will still affect me, but I don't know to what extent. 

Thanks for reading, and any advice would be hugely welcomed 

@jadealex26 From your post it looks like you have 2+ years of clear credit history and the only blemishes before that are missed payment markers (so no defaults, CCJs, arrangements to pay, etc.). Combined income of 46k, looking to borrow no more than 115k at 85-90% LTV. Based on that limited set of information, you should have mainstream options.

ACG

Were there any arrears on the mortgage? I only ask as you were not living in the property so any post would have gone to the house. Have you looked at your credit report? 

As above, there should be options. I am a little less confident than KS on high street options. I would certainly be giving it a bash, but I am maybe 50/50 on it passing. Well worth a try, but I dont think it is a given. 

K_S

ACG said:

Were there any arrears on the mortgage? I only ask as you were not living in the property so any post would have gone to the house. Have you looked at your credit report? 

As above, there should be options. I am a little less confident than KS on high street options. I would certainly be giving it a bash, but I am maybe 50/50 on it passing. Well worth a try, but I dont think it is a given. 

@jadealex26 ACG is right. I missed the part about the missed payments potentially being related to your mortgage, apologies.

JadeAlex26

ACG said:

Were there any arrears on the mortgage? I only ask as you were not living in the property so any post would have gone to the house. Have you looked at your credit report? 

As above, there should be options. I am a little less confident than KS on high street options. I would certainly be giving it a bash, but I am maybe 50/50 on it passing. Well worth a try, but I dont think it is a given. 

Thanks for your replies. No arrears on the mortgage, I made sure that was paid. Then once my ex partner moved back in, he paid all payments on the mortgage. I was still on the mortgage, but I didn't pay any money towards it. So I guess that would hopefully work in my favour? 

As for defaults etc, unfortunately there were some on the payday loans which resulted in being passed on to debt collection services. Show I forgot about this while typing earlier! These have all been settled now though, I have no outstanding debt at all. 

JadeAlex26

K_S said:

ACG said:

Were there any arrears on the mortgage? I only ask as you were not living in the property so any post would have gone to the house. Have you looked at your credit report? 

As above, there should be options. I am a little less confident than KS on high street options. I would certainly be giving it a bash, but I am maybe 50/50 on it passing. Well worth a try, but I dont think it is a given. 

@jadealex26 ACG is right. I missed the part about the missed payments potentially being related to your mortgage, apologies.

See comment above. Thanks for your help

JadeAlex26

Just to add, there were no CCJs involved at all, payment plans were set up but all payments were made on time, not sure how much that would count for 

Optimistim_13

As a wee bit of hope for you, i had a less than fantastic credit rating. I finished my DMP with stepchange nearly 6 years ago. It was 44k all in and took me 5 years to pay every penny back. I had 2defaults. We got approved for a mortgage on our dream house yesterday with santander with an 85% ltv, mortgage is 280k.
I just wanted to reassure you that there's life after debt so don't give up hope.

simon_or

OP, there's no need to get disheartened or wait for ages before applying for a mortgage. It looks like all your defaults are more than 2 years old. With a 15% or more deposit I'm sure a good broker can get you an adverse lender mortgage. Perhaps even with 10% but I don't know.

I've been in your shoes in the past, in fact with a much much worse credit history and the best thing I ever did was get an adverse mortgage early and not wait ages for my credit history to get clean.

When you're ready to buy, get a copy of all your credit reports, find a solid broker, they'll sort you out.

JadeAlex26

Thanks for the replies, all. Hoping that start looking sometime towards the end of this year or early next year. Just working hard to build as much of a deposit as we can, so fingers crossed!