Will I be sub prime for ever??

hairbrain05

Help !

Err.. where to start. I basically have a bad credit history - mostly down to my ex partner's death, which left me struggling to pay all the bills for me & our son, and also shockingly I discovered a joint loan had been taken out on our house for £40K (i knew there was a loan but was under impression it was for £12). I sold the house & paid it off & basically started over again.

I managed to get a (high rate!) mortgage & buy small house. Had no chance of a switch current account, until end of 07 when i was accepted for Alliance & Leicester current account. I also took out a small loan with Welcome in hope that this would build my score.

It's over 2yrs since the difficult times - I've never missed a payment or been late on any accounts since then, I've removed my association with ex partner from credit report & check it regularly.

However I am refused for even the most basic credit cards, such as Aqua & Vanquis, which I've applied for to test the water. I'm due to remortgage after being on a fixed rate later this yr - am I likely to still be sub prime & only be offered high interest rates? Will i be plagued by this for a full 6yrs? Also, I luckily have met a new partner & we're considering buying together - he has a good credit score - is my past likely to have an adverse affect on our potential combined mortgage rate?

Any advise would be muchly appreciated!

Chickenpie

rayday2

Yes it will effect your having a mortgage together it did for me and my new husband.

But take a look at chelsea building society they are going into the sub prime market and on there website they clearly say who they will and won't lend too, the interest rates are not that bad, certainly beat what I pay now.

CLAPTON

who is your current mortgage with... if you have kept your a/c with them is good order you may find they will offer a lower rate.

hairbrain05

current mortgage is for 75% of house with Mortgages plc...

Burlesque_Babe

It will affect you for 6 years, but it will get slightly better as time goes on.

4 years ago I had 2 defaults and a tiny CCJ (£500 fro goodness sakes!) I was stuck with GMAC-RFC when I moved and split with my ex as my current mortgage company (Abbey) wouldn't now touch me. I was able to get a few CC's but, they were the high APR ones (pre- light bulb moment - now paid off) Last May I was able to escape GMAC and although I'm still classed as sub prime, apparently I'm now sub prime plus, or 'near prime'. I got a 3 year fixed deal at 5.44% as both defaults had dropped off at least 12 months ago. Since becoming debt free, I've tested the water and I'm a bit more credit worthy - I applied for an MBNA 0% card and they said yes, and here's a 4k limit (no, folks, don't worry, i'm not running it up!) but Nat West and Abbey said no.

This August the CCJ will drop of my file and I'll finally be classed as prime!

so, after rambling on, yes you will be affected for 6 years, but as time goes on and you owe less debt and then pay off the debt altogether you could find things will start to slowly improve

hairbrain05

Thanks for the info - is really helpful. What I don't understand is after nearly 2yrs of clean as a whistle accounts (& have never had CCJs - just late payments & one settled default) - I still can't even get the most basic high APR accounts... Also it's real downer that my past will have an effect on future with new partner - feels like he's being penalised too...

RAS

Hi

Whats your credit score?

moneymare

Have been in similar-ish position.
My fixed term with Mortgages PLC ends in April - currently 5.3% and broker (moneyquest) to give me a call on Monday evening to discuss what's available - Will let you know.

hairbrain05

Thanks - appreciate that - my current rate is 6.69% and I'm really hoping to get lower next time!

Last time I got my score it was 511

RAS

hairbrain

Can you pop over to the bankruptcy board and ask for guidance there. Not that I am suggestign BK, but a number of peopel there have got half way decent mortgages within 3 years of Bk, so they know how to do it when your credit rating is not good.

head it up - mortgage with poor credit rating and ask for richard S- think he is on-line at the moment.

hairbrain05

will do - thanks v muchly