House deposit

[Hotpinkangel19]

We are looking to buy our first home - always rented but we really need a bigger house and would love to buy. Our credit history isn't great, due to getting behind with payments in 2017, what are the chances of us being able to get a mortgage? Income is around £4000 per month.

It seems to depend according to different mortgage advisors. My friends just bought, and they had to go to 3 different places. One didn't like the fact that one person had only been in their job for under a year. Another was fine with that, but not fine with a bill that had been defaulted (by accident) on within the last year. The third was fine and gave them a mortgage.

I’d go to a broker.... rather than a specific bank etc. They will be able to advise if your credit history isn’t great as to which places will take you.
Have you checked your credit score recently on on Experian?

How bad is not creat? CcJs? Have you re paid any defaults?

How good has it been since 2019?

What deposit do you have, if loan to value is more that 89% you may struggle.

A broker will help but get a search done to make sure when you go in you tell them of everything up front.

Speak to a broker

London and country have a specific ‘adverse credit’ team who can help if you’ve got bad credit scores

Unless you can "tick all the boxes" then a broker is definitely the way to go. As said above, they should know which lenders are more amenable to "problems" such as short job histories, defaults, etc., so will avoid you wasting lots of time going through the internet/High St lenders who are looking only for the "perfect" borrower.

Yup, get a broker. My friend works 3 part time jobs, which they were very iffy about, but she was sorted.

Agree with the Broker comments.

Also it depends on what is your LTV? How much percentage deposit do you have?

What multiple of your wages do you want to borrow?

How many missed payments and the time span.

There are sub prime lenders but their interest rates will be more.

Thank you for all your advice. We have around £50k to use as a deposit- no CCJ's or anything just rubbish credit and arrears from 2017.

Could you clear the arrears first? It’ll look much better. Also agree with above comments on brokers. They know the lenders who will be less concerned with a default. I know, for example, Barclays don’t mind a default if over 3 years ago, but Virgin Money won’t allow any in last 6 years. Others will suit you better.

Are the arrears outstanding?