adverse credit mortgage help required please.

dreamcometrue

3 years ago we got into financial difficulty when I gave up my job in order to bring our child up. We had a very good credit record, no problem getting credit/store cards loans etc, and we had these whilst I was still working and we were fully able to pay them. When I stopped, we started to slip and ended up robbing Peter to pay Pauls credit card etc and basically ended up in a mess. We eventually went to a DMC - held our hands up and since then, things have become a lot better, we are a lot more careful with money, we pay the DMC every week without fail and are getting back on track. However, we do have 8 defaults. We are currently living in a small mobile home which is now far too small for our family and we have decided to move. We can raise about a £40 thousand deposit so would only be looking at 80% mortgage. The idea being that we continue paying the DMC as all the companies are quite happy with the current arrangement, and that we re-mortgage next year in able to do full and finals and clear the debts (approx.K47). Can anyone recommend some mortgage companies that would be able to help in our situation? I have searched for adverse credit mortgages but there are so many, and obviously we do not want to keep on applying and have many rejections logged on our credit history. I am hoping that the fact we have made all the payments on time will stand in our favour - we were advised by the DMC that it can help repair the credit history as it is showing no late payments now, but we have been advised the defaults may be a big problem although we do not have any CCJ's against us. I would be grateful for any help you could give. Thank you.

Joe_Bloggs

How are you going to raise the 40K for a deposit. A sale of an asset I presume ? You say this is for a 20% deposit but this would make the total house price £200K. This implies a mortgage of 160K. This would require 3.5 x gross earnings, around 45K per annum. You then hint that the mortgage would also cover existing debt of 47K so that makes a total mortgage of 207K. For the same 3.5 income multiplier you would need 60K per annum to qualify and near perfect credit.

Have you contacted your local council and nearby housing associations. The smart move may be to move into social housing and repair your credit history. You may also avoid a housing price decline.

It's not what you wanted to hear but you could have got into more trouble with a massive mortgage at an uncompetive rate and lost the property.
J_B. (Only my view and in no way financial advice).