Bad credit and trying to get a mortgage

[bettybets]

Hi, I have checked my credit file and i have two defaults against my name from two 1/2 years ago which are now settled, i previously had really good clean acounts, my credit score now is under 500. I would like to try and buy a house late next year with a 10% deposit, however i can't get a credit card or loan to improve my rating at the moment. Just started a pre pay credit card to try and improve my score.

Any advice or anyone been in this situation and got a mortgage a year or so on? Or do i have to wait another four years to even think about getting a mortgage.

Such a shame because both defaults are settled now.

You should be OK, but go to a high street lender eg: Nat West, Santandar not one of the TV advertised ones! You may be charged a slightly higher rate than most because of your ceedit history or not get the best deal on offer, but you would still get a decenty-ish mortgae.

It's difficult to say what will happen with a mortgage, often they can be easier to get than other forms of credit because ultimately if u default then the lender can take your home, hense the expression secured loan. Do u have a good reason for the defaults? I used to work at a bank, and a lot of it can depend on this, although a mortgage may decline based on your credit score, the mortgage adviser I worked with would always refer it directly to the underwriter if there was a valid reason for something and often the decision could be overturned. I agree with carocaro, go to a bank NOT one of these dodgy companies advertising everywhere, the interest you will repay is ridiculous, and if u ever did get into difficulties they will be a lot less willing to help you out. Is there any way u can get more of a deposit? The more you can put down upfront the more chance you will find of being approved as it lessens the banks risk! Xx