mortgage advice

[pokerchief123]

hi guys, just need a bit of advice regarding mortgage's, i currently am thinking of getting on property ladder, my current situation is this....

 

previously had very bad credit history, so currently have 2 defaults from mobile phone companies for relatively small amounts both £300-£400 ish both settled a long time ago and they have been on my record for 4 years and 5 years now.

 

i currently have 3 years perfect credit history no missed or late payments and a few active accounts with very low balances gettin paid off in full every month, my current credit score is 600 from experian.

 

im wanting to buy a house in the region of £130,000 and i have a cash deposit of £30,000, how do you think i will get on with deals interst rates etc?

 

my partner has no idea of my past problems so just hoping i dont get any nasty shocks when it comes to seeing a mortgage advisor with her.

 

any advice, tips or comments welcome thanks!!

[pokerchief123]

hi guys, just need a bit of advice regarding mortgage's, i currently am thinking of getting on property ladder, my current situation is this....

 

previously had very bad credit history, so currently have 2 defaults from mobile phone companies for relatively small amounts both £300-£400 ish both settled a long time ago and they have been on my record for 4 years and 5 years now.

 

i currently have 3 years perfect credit history no missed or late payments and a few active accounts with very low balances gettin paid off in full every month, my current credit score is 600 from experian.

 

im wanting to buy a house in the region of £130,000 and i have a cash deposit of £30,000, how do you think i will get on with deals interst rates etc?

 

my partner has no idea of my past problems so just hoping i dont get any nasty shocks when it comes to seeing a mortgage advisor with her.

 

any advice, tips or comments welcome thanks!!

[honeybee13]

Hello.

 

You've posted on the Give up Smoking forum so I'll move this to the mortgages forum and hope you have some answers there.

 

My best, HB

[honeybee13]

Threads merged. HB

[Lea_HTH]

The bottom line is that you won't know until you start making applications. That said, you've got a good record of payment for three years, and mortgages are generally seen in a different light to, for example, credit cards or loans, because they are obviously secured on the property they are used to buy. In addition to that, you also have quite a substantial deposit, so the mortgagee's loan to you will be at less risk if you do default.

 

Other than wait another two years (probably not an option) until the defaults fall off your file, I think you're just going to have to bite the bullet and make an application for a mortgage. I think you might find yourself pleasantly surprised.

 

A word of warning though - don't, under any circumstances, use a sub-prime lender, it will cause you more problems than you can imagine if you get into difficulties. If a high street lender (prime) won't lend you the money, then wait the two years for the defaults to fall off your file and apply again.

[pokerchief123]

hi lea, thanks for your advice, i will take on board what you have said, might just try and hang on as long as possible before buying, every month may be crucial

[Lea_HTH]

I really don't think you should be unduly worried - if things are exactly as you state, I am sure a high street lender would offer you a mortgage.

[pokerchief123]

yep things exactly as i state, my own personal spin on things before coming on here was that, yes i have poor credit rating but i do have decent deposit so was hoping the latter may out weigh the defaults. main worry been that not sure if its entirely up to computer to decide my fate or if someone could take a look from a human perspective if u know what i mean?

[Lea_HTH]

Well, some banks do have face to face advisers, so shop around, find the one that suits you best, where you can go in and actually speak to someone. You can outline the details as you have here, and ask whether they would be likely to approve a loan to you. I think many of the high street lenders would, simply because you have quite a large deposit in relation to the value of the property you are looking at purchasing and therefore the loan they make to you would be at less risk.

 

Make some enquiries and let us know how you get on. Good luck!