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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

bad credit

26 replies

Clappingforjoy · 08/02/2021 23:45

Hello I feel very depressed as I cant get a mortgage due to my bad credit score which came from.mistakes made years ago and I'm.too old to put it right.
I am currently in rental but want out.
I will be getting around 30k inheritance so would have used some as a deposit then took a small mortgage but now I dont know what to do.
Please go easy on.me I'm quite upset.
Anybody been in this situation and have any ideas.

OP posts:
lastqueenofscotland · 08/02/2021 23:47

How bad are we talking?
Have you spoken to a broker rather than just a high street bank?

HilaryBriss · 08/02/2021 23:52

Your actual score isn't really relevant as lenders use their own scoring system, what is on your credit file is more important. Do you have CCJ's or defaults? Late payments? What is on there that is so bad and why are you to old to sort it out?

Have you applied for a mortgage and been turned down and if not, who told you that you can't get one?

It might not be as impossible as you think.

Original poster
Clappingforjoy · 08/02/2021 23:53

Very poor according to Equifax but it was 593 on check my file

OP posts:
Original poster
Clappingforjoy · 08/02/2021 23:54

No ccj but defaults yes I'm paying an amount between them all I owe quite a bit

OP posts:
SuperMutha · 08/02/2021 23:54

I agree with PP. Talk to a broker. I assumed I would never be able to get a mortgage as I'd made bad choices in the past but I was wrong

Original poster
Clappingforjoy · 08/02/2021 23:55

I'm 50 years of age never had any savings low income with no savings

OP posts:
Original poster
Clappingforjoy · 08/02/2021 23:56

And to top it off my credit score is stuffed from years back and problem is that even when you pay stuff off it can still take years to sort out

OP posts:
Original poster
Clappingforjoy · 08/02/2021 23:58

Everything I owe on is from years ago there is nothing recent and I'm.all up to date with everything Bill's etc never missed a rent payment etc

OP posts:
lastqueenofscotland · 08/02/2021 23:59

Your age may be the issue here as mortgage companies are only likely to give you a small term. Whereabouts in the country are you OP. It’s risky but you could look to buying in Middlesbrough/parts of County Durham with £30k cash and renting out.

lastqueenofscotland · 09/02/2021 00:00

But if you have only been speaking to banks get on to a broker tomorrow. If there is anything out there they will find it for you. I’ve found Knight Frank Finance to be particularly good at getting hold of deals/offers that you’d think don’t exist.

Inpersuitofhappiness · 09/02/2021 00:01

Have you tried to go through a broker?

Rosecottage888 · 09/02/2021 00:04

I had very bad credit, went through a broker and signed up to Experian and had a mortgage a couple of years later. It's not the amount of debt you have but whether you've made the monthly payments on time. If you have a few years worth of payments being made it boosts your credit. Good luck x

SuperMutha · 09/02/2021 00:09

Also things drop off your credit report after 6 years

Original poster
Clappingforjoy · 09/02/2021 00:14

Thanks alot everybody I will search about but it's so daunting I'm really upset that mistakes from years ago are affecting my life so badly.
I can easily afford the payments they are half of what I've been managing in rent I only want a 15 year term it's so upsetting I feel like crying.

OP posts:
SchrodingersImmigrant · 09/02/2021 00:16

Yes, broker. There are some lenders which are more lenient. The broker will know and be able to tell you what you can get

lastqueenofscotland · 09/02/2021 00:17

If you only want a 15 year term speak to a broker, the interest might be higher but they will be able to sort you something. They will
be able to help, no need to panic :)

BarbaraofSeville · 09/02/2021 07:27

How much is the debt and is interest being added or has this been stopped? Have you had any advice about your debts? One option might be to do full and final settlements on the debts, and then work on improving your credit history so you might be able to buy in the future.

But that would be a long term plan as you'd need to save a deposit again, and of course would depend on whether you can get a mortgage to afford a property where you want to live on your income.

Equifax credit scores are fairly meaningless, and they make their money by selling completely unnecessary services to people, who get over invested in the numbers they tell people.

You can get everything you need from Moneysavingexpert for free - information on how to improve your credit history and pay off your debts in the most efficient way.

www.moneysavingexpert.com/debt-help/

aloneisnotlonely · 09/02/2021 07:42

How much do you owe?

You're looking at £30k as a house deposit when it might make more sense to use it to make these debts go away and enable you to start again.

However bad things were, you now have £30k to help tackle everything. So your financial situation has definitely improved in some way, even if you're not going to buy a house now - think of it from that angle. Something has got better.

Listen to @BarbaraofSeville and get on MoneySavingExpert for some proper advice. Spend some time assessing your options.

PS Sorry for your loss.

RabbityMcRabbit · 09/02/2021 07:46

I'm 50 and hoping to get a mortgage in the next few years. I am renting atm as we had to sell my last house but have been told my age shouldn't be a problem. It might not be as bad as you think OP. Like a PP said, try a mortgage broker Flowers

Shaniac · 09/02/2021 07:52

Definitely try a mortgage broker first. Look around speak to many.

How much do you have to pay off can you use some of the 30k to offset the debts?

Are you in work at the moment an able to start saving even a small amount?

Have you looked at house prices in your area and how much a mortgage will be for it and repayments? You might have to save a bigger deposit as well say 20% rather than 5 or 10.

DianaT1969 · 09/02/2021 08:00

Dwelling on past mistakes isn't productive. If you want a mortgage speak to a broker.
Come back here after checking the money sites mentioned and having spoken to a broker. You are jumping the gun and catastrophising.
Have the facts ready for him/her. Your salary/your lump sum/ how much you owe and pay back.
You are in a better position than before.

Whaleandsnail6 · 09/02/2021 09:13

Definitely recommend a broker. We both had adverse credit and a (settled) ccj but were able to get a mortgage last year with an adverse lender. Needed a much higher deposit than if we had good credit and obviously it's higher interest but after 2 years we can try and remortgage and get a better deal.

MustardMitt · 09/02/2021 09:27

It’s not your score it’s the defaults.

Speak to a broker. There are still a few sub prime lenders about.

ZaraW · 09/02/2021 09:36

Banks can be a bit uselessness. Mine turned me down for a mortgage with a 50% deposit. They were rude and dismissive. I complained and later received an apology. Their mortgage "expert" gave me incorrect information and they asked me to arrange another meeting and I would get one. I declined their offer. Broker is the way to go.

lee12345 · 09/02/2021 09:41

Yes as previous posters have said, speak to a independent Broker/mortgage advisor. We have just been offered a mortgage & my partner has defaults & bad credit. There are lots of brokers who specialise in bad credit mortgages & will not look at the high street banks, but specialist lenders who will possibly offer you a mortgage.
How long ago were your defaults? As I believe after 6 years they drop off your credit report.

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