advice needed plse

pomp

I know its certanly not the best time to buy but I am in a position of needing to buy a house - Im in the forces and due to leave in just over a years time.

we have been acepted by the key workers scheme - which has recently been altered to cover MOD employees.

My wife currently has a debt management plan and i have had one in the past.
Neither of us have defaulted or missed any payments on those loans. Although when checking with experian i do have a "bad mark" against my name from Natwest even though it has all been cleared - they still have not amended my credit history.

We have been searching for mortgages - so far with no luck, i realise the more mortgages we have declined the worse it looks on the credit front (catch 22 situation isnt it)
can anybody please advise on where i could possibly get a "bad credit" mortgage, or better still had anybody any actual dealing with "bad credit" mortgage companies they could recommend?

thanks

dunstonh

go to a whole of market mortgage broker. Let them look at your situation and tell you who will consider you.

herbiesjp

Dont keep going direct to lenders and get declined, as all those credit searches will send alarm bells ringing to the lenders

As D says above, have a word with a whole of market adviser, and they should be able to find a deal for you taking into account your circumstances and the lender criteria.

Ian_Griffiths_Halifax

You need to sort out the issue of the Nat West entry on your Credit File.

You say it hasn't been updated, but what is there to be updated? Was it a CCJ that you've paid off, as you would need to get a Certificate of Satisfaction from the Court who issued it. To do that, you'd need proof of the date that it was paid off and make sure that the Certificate of Satisfaction shows the date it was paid off and NOT the date you take the letter to the Court or the date the letter was typed.

If it's a Default, then you need to get on to Nat West and ask them why they haven't updated it and that you want it updating immediately as they are effecting your credit rating.

UK007BullDog

sadly with a poor credit record you will not be able to get a key workers or shared ownership mortgage.

pomp

sorry for the late reply :embarasse Thanks for the advice guys, my wife has been in touch with "firstxtra" who seem very confident in being able to help us with a mortgage. Although we are still waiting on "homebuy" the peeps organising the keyworker scheme for the county i live in to get back to me with more details

Ian, Apparently it was a default with Natwest, although i never once missed a payment - i just had to reduce the amount i was repaying, which has now been cleared. I have asked for a letter of satisfaction which they havent sent, but they have sent a letter stating that the "outstanding indebtedness to the bank has been discharged" and i have sent a copy of this to experian, whom have apparently got in touch with Natwest about it.. but still nothing from Natwest yet.

pomp

Still heard zip back from Natwest :mad: however, good news the company who are dealing with our key worker scheme have got us a mortgage in principle with Abbey :T

My wife is over the moon with this, but im still a bit worried.. I like to see something in my hand in black and white from abbey sayin "congrats heres your mortgage..."

We've got a meeting with our FA on tues so hopefully he will put my worries to bed.

Does a mortgage in principle actually mean we have a mortgage? or is there still the possibilty of it being pulled from under our feet?

_Andy_

It could still be declined. Basically the AIP means they've done a credit search etc.. you should be OK as long as all your outgoings were entered and income stated was right, and so on.

sammyjammy

You need to understand that the default stays on your record for six years, you were in default of the agreement you made with Ntwest because you didn't pay the full amount due, its extremely unlikely they will remove this, its not clear in your post whether the entry on your credit report shows whether the debt has been repaid or not. I appreciate you're leaving the forces in the next few years but how disappointed will you be if you could have spent those few years saving up a big deposit and bought the same house for the same amount of money? Its a big possibility in these times and something you should carefully consider.

Sam

pomp

Andy i was 100% honest with everything on the paper work, so fingers crossed there sholdnt be any problems.

Sam, nobody has thought about that more than i have.
Thing is ive only just 1 year left in the forces, If i save like mad for this remaining year and use my goldern handshake i could have a very decent deposit, however i wont be entitled to the key workers scheme, theres also no guarantee that ill have a job as soon as i leave... no job no mortage for sure

If i get a mortgage now, then i am applicable for the key workers scheme and ive got a years security, when i do finish ill be able to use my golden handshake to pay a chunk into the mortgage and put some away for a rainy couple of months (if im unable to get a job straight away)and be applicable for the key workers scheme.

It really is a catch 22 situation

oh, the credit entry reports for natwest states
"status = Default, Balance = Satisfied" everything else on my credit report shows "status = satisfactory, balance = settled"

I did pay the full amount to natwest, it was just spread over a longer period, i believe the interest may have been stopped, but cant remember.
I just cant get my head around that its settled but still in default :huh:

inmypocketnottheirs

pomp wrote: »

I just cant get my head around that its settled but still in default :huh:

Yes this is what happens. Once a default has been noted, then it stays on your file for 6 years, even if later it is settled. The reason for this is that lenders take the view that you had to be issued with the default to get you to pay.

All is not lost though! Banks and finance/credit card companies have in the past issued these defaults like confetti. For a default to be issued, they have to follow a prescribed formula, and, well to be honest, often they haven't. If this is the case, or if they haven't documented the procedure properly, then it is possible to get the default removed. It is possible, because I have done it myself.

Have a good read through this link:

http://www.learnmoney.co.uk/credit-cards/remove_default_notice.html

One way of increasing the likelihood of getting the default removed is if you did not receive it. Are you sure that you did? If they can not prove that one is issued then you should get it removed.

Hope this helps and good luck.