Hi Dazzy,

As Huckster has said, you need to check your credit file and with an IFA or lender that you can get a mortgage before going further with the house purchase and spending your money getting solicitors, valuations, mortgage application fees (though you will have to pay this to get the mortgage).

You may have to go to a non mainstream lender to get the funding.

Is there any reason for trying to buy right now when lending isn't easy and you may still have the default on your credit record?

Is it more cost effective than renting? What if the value of the property drops further, what about once you have taken into account any fees that are involved?

The market is not stable, and we don't know if we are really having a recovery, or if it is a false recovery before dropping further (I hope not).

Good luck

Sparky.

Dazzyd

Have you approached an independent Mortgage Advisor yet to discuss your options? Has your credit report been updated?

Hi Guys,

Right i have saw a house i like, its going to cost me £119000. I have around the 18k for the deposit. Yearly income is around £35k. Is there any chance for me?

As Maxstream has said the default will stay on your credit file for 6 years.

You need to check if this is 6 years from registering or from settlement.

You will struggle to get a mortgage with this on your record, but do you really want / need to buy somewhere right now? or would another year - 18 months make much difference? Would you be better off renting and saving?

There are mortage lenders that will provide mortgages to people with CCJs or defaults and a search / comparison on the main site should help, these will be typically more expensive than the deals you will see advertised.

HTH

Sparky.

Hi,

Your deposit vs the house price seems to be fine, but it will also largely depend on your yearly income as well.

I'd say you would need to be on £30 000 to £35 000 a year to be accepted under those terms.

I contacted the company and they told me the reason i was turned down was due to an outstanding default. I told them the situation that it must be a mistake on my credit report and she said to call them and get the probelm sorted on my credit report then re-apply and i will get the credit card no problem. i since havent took the card though.

Defaults stay in your credit file for 6 years. Bearing in mind that a mortgage may last for 25 or 30 years, it is not unreasonable for lenders to expect to see 6 years of sensible use of credit. Having said that, there is no harm in talking to an independent mortgage advisor but I would guess that, if you were turned down for a credit card, you may also be turned down for a normal mortgage at this stage.

Hi Guys

I recently finished paying off a default loan in full March of this year. I got a credit report as i am away to apply for a mortgage and noticed it still showed a balance of £500 so i got it fixed start of this month.

The default was applied 22/5/06 and since then i have NEVER missed a payment on any phone bill, insurance etc. It really opened my eyes, as i was only 21 at the time. So now, i have 0 outstanding debt, only paying my phone bill, contact lenses and pet insurance by DD and as i say, i haven't missed a payment for 3+ years. My credit score was at 900 (Experian) in June and has since changed to 883 after i was declined for a Creditcard, alerting me that the balance of the default was still showing. It also says "there are no negative factors affecting your credit score".

Now, i have a £17-20k deposit for a mortgage, probably £150k max, would i be accepted?

Thank you in advance guys!