First time mortgage - 'adverse credit', advice needed!

MaxH1991

Hi,

I am looking to buy a place in January, I'll have around a 10% deposit.

However, I have two defaults - 1 expiring in March 2025, and the other end of June. Stupidly, they were payday loans - and I haven't cleared them as I have been in the process of unfair lending claims etc, and they contain obscene interest amounts in the balance.

However, I am now wondering, if I offer settlements to clear them, will I be able to get a mortgage? 

A default was removed from my credit account recently, and my score dropped massively - I have been building it up for a while with no missed payments etc.

Advice needed on whether I will be eligible for a mortgage with the above conditions needed please, if anybody has any experience.

ACG

You should be fine.
Dont worry about the credit score, its a made up number. 

You might need a broker as it probably wont be for every lender. All being well I would like to think you should be eligible for high street rates, but failing that I reckon there will be a building society or 2 who would consider you. There should be no need to look at the adverse lenders. 

Speak to a broker, it will set your mind at ease I think. 

MaxH1991

ACG said:

You should be fine.
Dont worry about the credit score, its a made up number. 

You might need a broker as it probably wont be for every lender. All being well I would like to think you should be eligible for high street rates, but failing that I reckon there will be a building society or 2 who would consider you. There should be no need to look at the adverse lenders. 

Speak to a broker, it will set your mind at ease I think. 

Thank you for your response, I appreciate it (getting very worried I wont get a mortgage!).

Sorry to sound stupid, as I've never had a mortgage before, will a broker charge for discussing my circumstances / am I best to wait nearer the date or can I speak to one any time?

Appreciate any advice.

ACG

Most will have an initial chat with you for free. 
The main thing I would say is that because you are not straight forward, I would probably avoid the brokers based in the large corporate estate agents and also the call centre brokerages like L&C. Its not to say they cant help, but generally smaller broker firms are the most experienced.