20 Defaults - Is it possible?

Holyt

Hi everyone,

I am hoping to get some suggestions/opinions advice if allowed?

I’ve been reading through lots of threads here and have found the advice and personal experiences really helpful, so I thought I’d ask about my own situation.

Im going through a really tough time that will result in about 20 defaults across various credit accounts including credit cards and mobile phone contracts. I know that’s a huge number — I’m honestly embarrassed to even type it — but all of them are now either satisfied or partially satisfied. They’re about two years old at this point, and I’ve had no missed payments since.

I’ve managed to get everything back under control, but I’m really worried that I’ve completely wrecked my chances of ever getting a mortgage. I understand that defaults stay on file for six years, but I keep reading mixed information about whether it’s ever possible to get a mortgage before they drop off, especially when there are this many.

I’d really appreciate any insight from anyone who’s been through something similar or works in this area.

• Is there any chance of getting a mortgage before the six years are up?

• Does the number (20!) automatically make it impossible, even if they’re all older and settled?

• Do specialist lenders ever consider this kind of situation, again 20!!!! if income and affordability are solid?

• Would waiting until the defaults are five or six years old make a big difference?

• I am aware i could wait till they drop off and getting a better rate however, if my aim is to get on the property ladder sooner than later, i could re-mortgage once they drop off right?

• Im just so worried that i have about 20!!!!

I know I’ve made big mistakes and I’m working hard to rebuild, but the thought of having to wait six full years before I can even try is quite worrying.

Thanks in advance for any advice or success stories — it really helps to hear from people who’ve been through the same thing.

grumpy_codger

Holyt said:

..

• ...I am aware i could wait till they drop off and getting a better rate however, if my aim is to get on the property ladder sooner than later, i could re-mortgage once they drop off right?

Why do you want "to get on the property ladder sooner than later"? Have you done your maths? With your credit history even if you get a mortgage you are unlikely to get the best rate. Do you expect your starting interest to be lower than the rent you are paying? And this doesn't take into account big maintenance expenses that home owners face. 

Rushing "to get on the property ladder" makes sense when house prices are rising or are expected to rise, but ATM they are stagnant and the future is unclear.

So, essentially, you are gambling on the prices to rise and this bet will possibly cost you. Nothing wrong with this as long as you clearly understand this.

ACG

Yes! The number can be a problem with a lot of lenders but its not a deal breaker. 
Spin it on its head - You have 20 defaults all from the same period of time. If you look at your credit report it will be green green green - red - green - green - this suggests there was a problem at that particular time. 

Thats life, it happens. It could also just be that there was a growing problem and you drew a line in the sand. Either way with 2 years clear, it shows the problem is behind you. 

I think "my" record is 27. 

One other thing that sets you apart from most people I see - you have satisfied yours! Most people do not. 

• Is there any chance of getting a mortgage before the six years are up? - should be fine now. 

• Does the number (20!) automatically make it impossible, even if they’re all older and settled? - No. 

• Do specialist lenders ever consider this kind of situation, again 20!!!! if income and affordability are solid? Yes

• Would waiting until the defaults are five or six years old make a big difference? - It will lower the rates but you should be fine now to get a mortgage. 

• I am aware i could wait till they drop off and getting a better rate however, if my aim is to get on the property ladder sooner than later, i could re-mortgage once they drop off right? - yup. 

• Im just so worried that i have about 20!!!! - Dont be. 

You will probably need a 15% deposit. But aside from that, you should be fine. Stop worrying, speak to a broker though as its unlikely to be high street.