Hi all,

I wrote this a few months ago and since have been investigating my options and realised that £187k was a bit ambious for a house price given our earnings and deposit. So have realised that we're looking at more around £165k which is fine with a 20% deposit of £33k giving us a mortgage of £132k ish which is more than affordable.

I contacted my original broker who looked at my credit report and said the 5 defaults (1 was never registered) had been settled and this was a bonus when applying for a mortgage. I approached my original lender who is no longer offering mortgages.My defaults were originally register 3 years ago totalling £5125 off various credit cards/store cards. Are broker contacted me and said that because they were settled and only had 3 years remaining that Halifax would consider us, I was a bit unsure but thought she might no what she's doing etc.Anyway she went away and started doing some sums and then worked out that we could get a 60% mortgage. I was kind of confused but later realised that she had allowed for that fact that 25% of our house was owned by the housing association so in fact we didn't have that size deposit.

We then found a house strangely through the Halifax and they offered to take a look at our mortgage working on a deposit of 15 - 20% a maximum of 20% as we are already borrowing money from family! Anyway she went away to do her sums not telling me that she was going to do a mortgage promise, I didn't hear anything for about three weeks so contacted them and got some other lady who told me that my application had been declined, what application I said, she was just offering me 'what we can borrow, the term and all that stuff but apparently and looking at my credit profile she'd done a full credit search and obviously two of the defaults hadn't appeared as settled so I wasn't surprised. So I knew that if my broker went through with the application the same thing would happen.

Anyway after that long expanation we have decided to put moving on hold for as long as we can in an attempt to improve my credit profile. It has improved from a very poor profile to a poor profile but one of my defaults with halifax is still waiting to be changed (they are taking their time) but I'm sure by the new year it should be. My husband has a good great history with no late payments and only one credit card with a small balance on it so he's completely clean.

Our fixed rate mortgage has just ended so we are currently variable and saving the difference towards moving etc. My biggest question is if I leave moving until my defaults are only one or two years away from being rewritten off will I have better mortgage options. I know sub-prime mortgages are now non existant but there has to be someone that might consider us considering for the last 3 1/2 years I've mantained all my payments on time and without problems.

I can't leave moving until my defaults are rewritten off as our growing family is currently squeezing in to a 2 bed terrace house without a garden. I suppose alot of this is unsure because of the recession and what not but it would be nice to hear someones views or probability.

Any advice would be great

Thanks

Gemma

You would have a problem getting a lona for that amount even if your credit was excellent. have you worked out what the repayments would be at a more sensible rate of interest than we've currently got and are you certain you could afford it particularly if one of you lost your job ? I reckon a 25 year repayment mortgage at 7% (which is a reasonable rate) would be £1,110 a month which seems alot based on your joint take home. Stay put and keep saving.

Hi Gemma,

It can take a few months for the settlement to reach the Credit Reference Agencies. You could try writing to them to state that these have now been settled, and ask them to update. They should check with the lender and if confirmed should update.

On the mortgage front I think it is a difficult situation, and I think that you will struggle based on affordability even ignoring the defaults / credit record.

You are applying for a mortgage of 157K which is 4.69 times the joint income.

Getting around 2.5 to 3 times a joint income is usual, and it is very difficult to get 4.5 times a single income.

Did you ask your current lender about porting your mortgage to a new property?

Sparky

Hi All,

I've been on here alot lately and been asking questions about whether now would be a good time for us to move.

Three and a half years ago I had six defaults registered against me because I was having a hard time, it was stupid but I've maintained payments and last month paid off all my debt. They aren't showing settled on my credit profile yet and its extremely frustrating.

We've kept all our mortgage payments on time and all our other bills etc. My husband has an amazing credit score and while mine has improved over the last year its still pretty bad. We were planning on moving in the New Year but last week we found the perfect house at a bargain price. We have a 15% deposit but because of my credit history we can't find a mortgage. I contacted our current mortgage provider and as I feared they aren't currently lending. So I have contacted a broker who didn't seem exactly confident that he could help us.

Has anyone recently been accepted for a mortgage with bad credit? I know that with the economical climate people aren't lending but my husband has a good score and we don't want to borrow a large amount. Our deposit I'm told is reasonable. Does anyone know if there is anyone currently lending.

Purchase price - £187k.

Deposit - £30k

Income - £16500

Husband - £17000

Any advice would be great.

Thanks

Gemma