Mortgage chances with numerous 5 year old unsettled defaults.

BubbleTea
BubbleTea Posts: 9
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edited 11 February at 6:55PM in Mortgages & endowments
Hi all.

I got myself into into a very bad financial situation in 2018. I left my stable but low paid job and went back to uni to study nursing. This was done on the understanding that my partner would support us financially during my studies. However we split at the end of my first year of studies and I defaulted on numerous credit agreements, mainly credit cards. Totalling around £15k. 

These are currently sitting on my credit file as unsettled. Around 11 defaults. They are mostly around 5 years old and are statute barred (I'm in Scotland). 

I want to buy a property for £70k (I'm I a cheap part of the country) and currently have a 20k deposit.

I'm aware I could wait it out for a year till the defaults are off my file, however ideally, I'd move sooner rather than later.

Would there be any chance at all of me getting an adverse credit mortgage? I very much doubt it however thought I'd check here as I've had useful advice previously! 


Comments

  • BoGoF
    BoGoF Posts: 6,764
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    I would imagine any replies would be the same as the last time you asked the question this time last year.
  • BubbleTea
    BubbleTea Posts: 9
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    edited 11 February at 7:23PM
    BoGoF said:
    I would imagine any replies would be the same as the last time you asked the question this time last year.
    I would imagine they wouldn't be seeing as last year's question was a different question. Last years question was - bad credit, should I wait until defaults fall off my file or go for a mortgage before that. This question is would be be likely to be accepted currently with my credit status at present, due to my circumstances changing and being unable to wait till next year.

    Do you have any useful advice?
  • ACG
    ACG Posts: 23,620
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    Ironically, you might stand a better chance with a more expensive property. 
    A lot of lenders have a minimum valuation of around £75k.

    But you should be ok in any event. 
    I am a Mortgage Adviser
    You 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.
  • BubbleTea
    BubbleTea Posts: 9
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    ACG said:
    Ironically, you might stand a better chance with a more expensive property. 
    A lot of lenders have a minimum valuation of around £75k.

    But you should be ok in any event. 
    Oh really, you think I'd have a chance? I honestly thought they'd laugh in my face with all my defaults, despite them being old. Well that's promising. I'm guessing it wouldn't be a High Street lender though and I would need in fact to go to an adverse credit lender? 

    Re the 75k valuation thing, the area that i live in has quite a few properties under that price bracket, I don't know if valuers perhaps recognise price variations nationally and adjust accordingly? No idea, it's certainly not my area of expertise. Thank you very much, you're a great source of info on these forums. 
  • ACG
    ACG Posts: 23,620
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    Scotland is one of those quirky areas, you have fewer lenders to choose from. 
    I think it probably would be an adverse lender, but it depends on your credit reports etc. 

    The £75k thing would also be in Scotland. There is a general view by adverse lenders that properties below a certain value may be harder to sell. £75k tends to be that cut off point. 

    Speak to a broker, you have a good deposit and everything is historic. Everyone has problems at some point in life, yours seems to be well over 4 years ago. You should have options. 
    I am a Mortgage Adviser
    You 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.
  • Hoenir
    Hoenir Posts: 1,220
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    edited 12 February at 1:42PM
    Credit card lenders are also mortgage lenders. Elephants have long memories. Saving for a deposit rather than settling historic debts is a sure way of burning bridges. Financial relationships being built on trust. 
  • JustMe18
    JustMe18 Posts: 67
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    Personally I don't think so...I'm not a broker though, just from my own experience...I have 1 default and settled 11 months ago at the date of the application and lender declined, as they would only accept full 12 months since it was settled. Also they are the only lender , who would take even these conditions. 
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