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Mortgage help- low credit rating

(13 Posts)
MamaGeekChic Mon 21-Jan-13 17:05:03

I wondered if anyone knowledgable in this area could help. I'm looking to buy my first property however my credit rating isn't great- had to rob peter to pay paul to get myself though uni sad it's now just in the 'good' category on equifax so about 450ish out of 999, no CCJs, no currently outstanding debt. I want to buy a propertly worth £300k, I have a £30k deposit saved myself so not a gift, not sure if it makes a difference (plus a few extra £ for stamp duty and other fees), earnings for the last 3 years £70k, £78k, £115k. What are the chances? I'm really worried and sad that the situation I was in 4 years ago might mean I can't buy my first home. Thanks.

MamaGeekChic Mon 21-Jan-13 17:30:39

anyone?

MamaGeekChic Mon 21-Jan-13 19:07:11

one last bump...

Mum2Fergus Mon 21-Jan-13 19:32:36

Hi Mama...Im no expert but do know that your credit rating is taken into consideration. What you may find is that a lender will consider you however may put you on a higher interest rate (its called 'rate for risk' and is applied to all forms of lending). You also undergo affordability criteria taking into account everything you have coming in/out. You'd be best getting in touch with an IFA for guidance.

MamaGeekChic Mon 21-Jan-13 19:41:32

Thank you! i guess I'm just concerned that if the IFA does searches/credit reports etc and the answer is no it might have a negative impact. I'd rather know that there's no chance until my credit score reaches x level then wait 6months/a year.

PixieHot Mon 21-Jan-13 20:24:47

Martin Lewis recommends London and Country - they're a whole of market mortgage broker, and they don't charge you any fees. They give you a mortgage decision in principle without carrying out a credit check (as far as I am aware).

Rockchick1984 Tue 22-Jan-13 11:34:02

A mortgage in principle is credit checked, it just doesn't tie you on to any fees etc or commit you to anything.

Was it something specific that happened to cause your credit problems? What level did it get to, CCJ's, defaults etc? Often if there was a good reason eg death of spouse, divorce etc and you have made good on all the debts you had, the application can be referred to the underwriters for a person to see and make a decision on rather than simply a "computer says no" type answer.

MamaGeekChic Tue 22-Jan-13 11:41:22

Thanks everyone, will have a look at L&C.

Re level of debt, there were a few default notices where they had gone unpaid for 2months but no CCJs, all debts have now been cleared except a credit card which I use and pay in full each month. The reason was I was skint, trying to support myself and do a full time degree, I couldn't claim any assistance (aside from basic loan which has now also been paid back) as my parents earned too much but I was estranged from them so they weren't actually supporting me even though it was assumed by student finance that they were.

vanillamum Sat 26-Jan-13 19:26:38

We were in a similar situation and used a mortgage adviser. He did charge us but it was money well spent. Be honest and explain your situation.your good score is good.we ended up with mainstream lender without paying high interest.

Suz1975 Tue 19-Feb-13 10:16:53

I have a question....I currently pay a mortgage but since have gone partime after having a baby, my mortgage is up for renewal this yr, where do I stand now I'm partime will they renew or not????

chocolatespiders Tue 19-Feb-13 16:47:37

I often wonder if I should try for a Mortgage after paying £70,000 in rent on current house.
How much of a deposit would I need.
Would I be considered as a single working parent? Think my credit rating is only good.

Mum2Fergus Tue 19-Feb-13 21:20:34

When I applied recently it was minimum 10% deposit for an older house and 20% deposit for a new build. There are a few schemes that you may qualify for...check with lical developers. And dont forget to budget for fees and moving expenses.

dikkertjedap Wed 20-Feb-13 08:34:21

The housing market will be down the dumps for at least a few more years. Personally I would give it some time to improve your credit rating and save more before buying your house. Otherwise you may be stuck with an expensive mortgage and not many providers to remortgage with when you need to. Credit ratings are very important in determining the cost of the mortgage.

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