Missed payments and mortgage applications

Sands1 · 17 August 2019 at 2:44PM

Hello

Completely new here so apologies if posting in wrong place or if it’s been asked before.

In 2016 I had my daughter, and my husband quit his job for a lower paying job due to his mental health. Due to this the credit card debt piled up and when my maternity pay stopped I missed a some payments. I’ve done my best to keep on top of it but the last missed payment was as late as March 2019.

Our situation financially had changed significantly now and everything is not only up to date, and thankfully none of them got as far as default notice, but within the next few months we will be completely debt free with the exception of our mortgage. This hasn’t been easy and involved 60+ hour working weeks.

We’d like to buy a bigger house next year and financially this won’t be an issue. However I’m conscious my credit will be ruined due to the above. We desperately need more space and I don’t know what to do. I’ve read that brokers can normally get a mortgage with a history of poor credit, has anyone been in similar situation or does anyone have any advice?

Thanks for reading all of the above!

[Deleted User] · 17 August 2019 at 2:53PM

Yes you’ll need to see a broker who specialises in adverse credit histories.

You may end up paying a higher rate though and may not get a high street lender.

Smodlet · 17 August 2019 at 3:42PM

Good for you for overcoming such a challenging situation, OP. I hope your post gives inspiration and hope to others who may find themselves in the same situation. Best of luck to you.

MovingForwards · 17 August 2019 at 4:24PM

A few brokers will be along later but it may be best if you could give the month/year of each missed payment, plus the cost of the bigger property and your equity/deposit towards it so they can give you a rough idea on what you will be looking at interest and availability wise

You will need a good whole of market broker.

RelievedSheff · 18 August 2019 at 2:48PM

It is certainly possible to get a mortgage with adverse credit on your file.

We recently managed to get a mortgage even though I have two CCJs on my file. One is due to drop off my file in October and the other is from 2015.

We also have late payments but no defaults dating from around 2015.

You need a decent mortgage advisor to find you the best deal. Our mortgage rate isn't great at 5.09% but it is only for two years by which time my credit file should be clean and it did enable us to get the house that we really wanted.

Sands1 · 22 August 2019 at 3:30PM

You have given me hope so thank you all!

The main missed payments were 2017/2018. I would miss it and then make it up the next month, but then that would leave me short so would keep happening. The last one was March this year but I was paid a couple days later. And haven’t had a day off since to ensure all the debts are paid off!

Thankfully houses where we are, are considerably cheaper than other areas as we’re quite remote area of Scotland. So looking at a house for around £150-£175k and we will have atleast £20k deposit from the equity in our house.

Thanks again!

Missed payments and mortgage applications

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