Defaults will fall off your credit file 6 years after they were issued, not after they were paid. So if your defaults were around 4 years ago you will have another 2 years until they fall off your credit file and cannot be viewed or counted against you any more.....however, if you are still running the arrangement to pay this will count against you still and have a negative impact on your credit file.

It would be wise that if you rent your house that you do so under a ciontract. This is normally called an Assured Shorthold Tenancy Agreement (AST). It is normally a 6 months rolling contract which protects your rights as owner as well as the tenants. pretty straightforward but if you are selling the huse then it is most likely that the lender for the new owner will insist on full vacant possession - in other words, any tenant will have to vacate the property on purchase.

Assuming these terms can be agreed to then there should be no problem renting your proeprty to a tenant.

Be aware though that if your property is held under a residential agreement that you will have to switch to either a buy to let mortgage or gain a consent to lease from your lenders before you can allow a tenant to rent.

Thank you, that's really helpful, especially about the arrangement to pay, I didn't realise that had such an effect!. Just a couple more questions if anyone can help?

Do the defaults stay on your credit file for 6 years from the date you defaulted, or for 6 years after the defaulted amount has been satisfied?

Also, if we rented our current house out whilst we rented another, are there any complications to selling our house in a few years time if it's being rented out. Will/Should the tenants just move out if we give them notice?

Thanks again, much appreciated.

In my opinion I think that a mortgage is out of the question unless you want to pay extortionate rates and by extortionate I mean 10% -15% (compared to normal rates of 3% - 5%)

Yorkshire BS will not be able to help you here either. While they do take a little adverse credit they will not accept as much as you have along with it not being "satisfied" and also your "arrangement to pay".

The 3 main things that you have going against you at the moment are:

Several defaults - not so bad in itself as they are a few years old - will fall off your credit record altogether after 6 years.

The defaults are not satisfied - This is an absolute must if the default is anything over £250. If it is over £250 then the debt must be satisfied (repaid) at least 12 months for most companies before they will consider for a mortgage....some will accept a small amount unsatisfied.

Arrangement to pay - This reduces your credit score to practically nothing (if the defaults have not done that already) No lenders like debt management plans which is what an "arrangement to pay" is and as such most lenders would decline you on this alone regardless of the other factors.

I think your best bet is to rent a new property where ever that is for at least a year and if you can try and rent your existing mortgage property, this will at least cover your mortgage payment on the house and maybe even some on your new house

Hi I would really appreciate some advice please.

My partner and I need to move house. The house we live in currently is his house and mortgaged with around 40k equity in it. My partners credit is good, mine not so good, no CCJs but a number of defaults around 4 years ago. I still have a few outstanding debts of around 7k to pay off (currently I have an arrangement to pay in place) and these can be paid off when we sell the house.

Once the house is sold, neither of us will owe any money at all (my partner has a couple of credit cards and a loan that are all up to date), and we will also have a deposit of approximately 15-20%. When I've put our information into money supermarket comparison for mortgages and stated we have adverse credit, it only responds with mortgage options from one particular lender - Yorkshire BS (Branch only). Does anyone know if they do indeed offer mortgages to people with bad credit?

Or, does anyone know of any other companies that would perhaps consider giving us a mortgage? We have to move, so we could sell and then rent for a year or two, but obviously credit checks would be carried out anyway, and rent would in effect be dead money, but we would really like to be able to buy again.

Neither of us earn bad money, I earn 27k and my partner earns 22k.

Any advice anybody could give on the above would be much appreciated. Is it worth us talking to a financial advisor/mortgage broker of some sorts??