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Some adverse credit - exploring options

Hi All,
My financial situation was always poor, but has improved over the last year. I have saved nough up for a decent deposit. But still have some adverse on file.
CCJ: May 2018 - £900 - Drops off in a few months.
Default Mar 2018 - £2000 - Drops off in a few months.
Default Aug 2020 - £2000 satisfied Jan 23.
No missed payments in 3 years.
Last payday loan Aug 22
About 1.5k on a 0% balance transfer (Will be paid off before completion)
Income 43k
20k deposit - LTV around 82 - 85% depending on purchase price.
I spoke to a free broker, but I don't think they covered much adverse credit. They recomended Kensington 7.1%.This was a month ago, so might have dropped.
Does this sound about right? I've read many adverse credit stories where people have gotten high street rates with a 5yr plus ccj.
Could the ccj be discounted by lenders given that it will likely be off my file before completion(if I was to apply in march)
If not, would I be able to get a better rate if I wait till may when the ccj drops off, or is it negligible difference given that I still have the other default on file? In which case I'll accept the higher rate now and get moving.
Thanks, happy to answer more questions
Comments
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I would wait until drops offDon't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0
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Rates have dropped in the last month so it might be lower with the likes of Kensington. But I would like to think there are small building societies who can offer something cheaper.
The problem with high street lenders is that everything contributes to an overall score, so whilst they can accept this or that, it does not mean it is ignored. It just means it is within criteria. If you were to apply now to a high street lender, you are trying to overcome a CCJ, 2 Defaults and some arrears by the sounds of it (as credit reports go back 6 years). Individually all of that would probably get past a credit check, combined its a different story and I think it might be a tough ask. If you were to hold off until May, thenn there is only 1 default and some arrears - still not a guarantee but much more likely.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
I managed to secure mortgage with 10 CCJs [the last one was in March 2023] and 9 defaults. Not sure about the payday loan, I've heard it's a red flag as it indicates you have affordability issue, but from what you described, doesn't sound like extreme case. You might want to approach a mortgage broker that specializes in lending for people with adverse credit, as they will have access to the specialist lender, just make sure to have your up to date credit report from checkmyfile ready to send over. Best of luck0
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veronikamoneva said:I managed to secure mortgage with 10 CCJs [the last one was in March 2023] and 9 defaults.Based on your previous comments, that was with a specialist adverse lender though I think?This thread is now 5 months old , and as ACG mentioned above, with a delay until around now there may be alternatives to the adverse lenders for the OP, so let's hope that they have been successful...
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MWT said:veronikamoneva said:I managed to secure mortgage with 10 CCJs [the last one was in March 2023] and 9 defaults.Based on your previous comments, that was with a specialist adverse lender though I think?This thread is now 5 months old , and as ACG mentioned above, with a delay until around now there may be alternatives to the adverse lenders for the OP, so let's hope that they have been successful...0
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veronikamoneva said:yes, always specialist lender in these circumstances.That is the point though, this doesn't always have to go just to specialist lenders, and as ACG suggested above, with a little more time there could be other, cheaper options and this is a site dedicated to saving money.veronikamoneva said:I hope it's ok with you I reply to a 5 month old post??? I assume posts are searched for other people searching for answers, hope you prefer this than people asking the same questions over and over again???I am sure you will be able to contribute usefully to others who post in the future looking for reassurance that poor credit history isn't a total block to getting a mortgage.0
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Bumping old posts isn't always as helpful as it might seem as it brings with it older and often outdated information in the original thread, and often restarts other posts answering something that is too late to be of help as in the case of the other old thread you bumped on 'bank statements'.I am sure you will be able to contribute usefully to others who post in the future looking for reassurance that poor credit history isn't a total block to getting a mortgage.0
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