Looking to get a shared ownership mortgage

[Jabloom]

Hi,

I'm just wondering I've checked my credit file with checkmyfile And my equifax score is 555 this is because of a default which was satisfied in may. My call credit says 725, this is the what lenders see. The rest of my report is good. Am I likely to get a shared ownership mortgage? How long will it take for my score to improve enough for mortgage companies to consider me? I rent at the min and I spend the same as I would on a mortgage and rent can't buy a normal house as house prices are so expensive all I can afford is a one bed flat which is no good when me and my husband have a 2 yr old lg and my step son stays with us 1 day a week. My husbands score is pretty much the same as the default was for the same loan which is now satisfied. Any help or ideas would be good.

[Jeremy Belknap]

Hello Jabloom

 

A default will stay on your credit file for six years after the date of the actual default.

 

The credit scores provided by credit reference agencies are really only for information purposes and only give a general idea of your credit score. Each bank has its own lending criteria and some bank will accept one person whilst there are other banks that would reject the same people.

 

If you have a good history with whichever bank you hold your current account with or who you have the longest and best history with, it may increase your chances if you apply with that lender. It would do no harm to make an appointment with an adviser and sound them out, without submitting an actual application.

 

The size of the deposit that you are able to pay may also be an important factor in any lending decision.

 

Jerry

Edited August 25, 2013 by Jeremy Belknap

[citizenB]

http://www.thisismoney.co.uk/money/cardsloans/article-1585131/Improve-credit-rating-history-score.html

 

There is some advice in the link above that might give you some ideas.

 

Under NO circumstances believe the advertising of PDL companies - that if you take out a loan with them and repay it quickly that it will improve your credit score - it will NOT, in fact it will do more harm to your credit rating.

 

Any default markers you have on your credit files will drop off on the 6th anniversary - but you need to ensure that all utility bills and especially mobile phone bills are paid on time and up to date (credit files have been trashed by the likes of Vodafone and Orange for as little as £15.00 !! )

 

Will you be a first time buyer ? If so, some Councils have schemes to help - you might find you stand a better chance with them. See link below or speak to your own Council.

 

http://www.theguardian.com/money/2011/mar/16/local-councils-first-time-buyer-mortgage-support

[Jeremy Belknap]

http://www.thisismoney.co.uk/money/cardsloans/article-1585131/Improve-credit-rating-history-score.html

 

There is some advice in the link above that might give you some ideas.

 

Under NO circumstances believe the advertising of PDL companies - that if you take out a loan with them and repay it quickly that it will improve your credit score - it will NOT, in fact it will do more harm to your credit rating.

 

Any default markers you have on your credit files will drop off on the 6th anniversary - but you need to ensure that all utility bills and especially mobile phone bills are paid on time and up to date (credit files have been trashed by the likes of Vodafone and Orange for as little as £15.00 !! )

 

Will you be a first time buyer ? If so, some Councils have schemes to help - you might find you stand a better chance with them. See link below or speak to your own Council.

 

http://www.theguardian.com/money/2011/mar/16/local-councils-first-time-buyer-mortgage-support

 

This is excellent advice, please look into this and keep us updated

 

Jerry

[Jabloom]

Thanks guys for your input. It's very interesting reading those links. Everything else on my credit file is fine its just this one stupid default which is now satisfied. I'm looking at going down the shared ownership route as I am a first time buyer and where I live ere is no way I can get a mortgage large enough for a place big enough for us all. I'm just fed up of paying £650 a month rent when it could be going towards my own home. The shared ownership I'm looking at is through the housing authorities, I've been except by them just need to be accept for a mortgage. I understand not all lenders deal with shared mortgages which limits me and I haven't got a huge deposit so again that limits me too. I'm looking at getting a mortgage in the region of about £78,000. Obviously I don't want to apply and get turned down and that to affect my credit.

I'm going have to look into this lend a hand mortgage, I've not heard of this. I've looked at the government one where they pay 20% and you pay 5% and shared ownership but they won't combine the two.