Im looking into buying my first house in about 3 yrs time im 29 yrs old and earn about £40k a yr, my wife is 23 and earns about £15k a yr so we have around a £50-55k between us income....we will have about £25-30k saved towards a deposit and looking at borrowing about £100k max for the house.........BAD BIT....ive got a few defaults from late payments on credit cards etc and ive got quite a bad credit rating so when i apply for a mortgage this will all show up , will i have problems getting a mortgage??....(at the moment im paying £475 + bills etc fo my rent)...many thanks p.

 

Should be fine as your deposit is such a high percentage of the house value. Late payments are ok... anything else you are not telling us though.

Does late payments actually mean NO payments?

 

Thats quite a direct question at this time of the mornng Lee

mike

 

its 8.05, I have been up for 3 hours already!

 

tell me about it!

 

If you have actually defaulted or have CCJ's then YES, they WILL show up. They go on your credit profile and say for 6 years from the date entered.

Have they been settled ? As Porkie says though have you paid late of have you knocked ?

 

a few late payments and two loans that i couldnt afford at the time was rewritten so im paying a lot less each month that was 17 mnths ago .......will the deposit/income outway the risk in my credit history?

 

Not necessarily. The deposit will definately go in your favour but you MAY, and I stress may, find it difficult with the mainstream lenders ie. nationwide, Abbey, Halifax et al.

May be worth your while seeing a mortgage broker as he'll know the marketplace better than anyone and will know where to go. First things first, ring Experian and get a copy of your credit record and see what's registered. Know what you're up against first.

 

you will get a mortage through a financial advisor easily, if you are putting down 25% or whatever they couldnt really give a flying fuck about your credit history as they know they can recover the funds from the sale of the house anyway.
You may get charged a slightly higher rate though.

 

A lot depends on whether the selected lender works on the Credit score basis or on credit history basis......be upfront with your IFA at the start let him/her know your reservations so they know exactly what they are dealing with, they will then know which lenders use which system for establishing your credit worthyness.

Late payments are shown on your credit history however if they have been satisfied and your account is upto date then as long as the period of missed payments didnt go on for month upon month then it shouldnt be overly detrememntal.

The loans; you state that they were rewriten, this in itsself wont go against you assuming you didnt mis payments IF you did however then it will be recorded on your credit file as above.

It may be worth contacting Equfax and having a note put on your credit file explaining the reason for the blip.....this can be an advantage should potential lenders request a full credit report.

In your favour you did rescedule your finances when you realised you were faceing financial difficulties.

best of luck

 

may be worthwhile getting a credit repot too - £12.95 for a fully detailed report from www.equifax.co.uk

gives you a score, all the details held on your credit file and holds all details about everything you have done in the last 6/7 years financially

 

i would have thought that with a house if u dont pay ur mortgage then they would just take the house of u????,....unlike ay a creditcard/loan, they have to fight u and take u to court to get a penny out of u??

 

Correct they do however they have measurements in place to minimise the instances where they have to do so. Hence Credit checks.

Lenders also cover themselves by way of a Mortgage Indemnity Guarantee which in effect is an insurance policy taken out by the lender which allows them to sell off propertys in the event of reposetion at 75% of the market value. Allowing them to dispose of repossesions quickly.

Borrowers who do not have a large deposit to put down often have to pay a portion of this MIG on behalf of the lender.

 

Mortgage Point @ Preston " 01772 88 08 08" will still find you a Mortgage even if you CCJ's etc, and there not one of these shit internet companys that will end up raping you, there interest rates are not to bad considering the circumstances in which they honour mortgages.

Another way would be to get a wealthy parent / relative to act as a Guarantor for the loan.