Default on debts / getting mortgage - can anyone help?

[WhywouldIdothat]

I defaulted on a number of debt repayments (loans, credit cards) due to ill-health in 2011. The credit report actually shows the default starting January 2012 (they recorded 2011 defaults as late payment) so as I understand it, it will be 6 years later that these finally disappear from my record i.e. January 2018.

I am aged 39 and with two small DCs I really want to get a mortgage asap. I've asked the banks if I were able to clear the outstanding amount (currently just over £1k which is do-able in a few months), would they use their discretion to change the original default date to 2011 but they said no.

If I wait until 2018 (or even 2019) as some lenders say no defaults showing for 12 months - will I still get a mortgage? It will be my first and I will be 42 / 43 and self-employed.

Or is there any other way I can get a mortgage before then? I could afford one particularly through co-ownership scheme here which means you don't pay a deposit. I'd actually be paying less than rent payments.

Have you tried to get a mortgage and been turned down?

Pay off the debts, keep your record clean for a year and stop worrying about it TBH

Really Talkin do you think I will succeed in getting a mortgage with defaults? And what do you mean by keep my record clean? Beyond the defaults you mean?

Clear your debts, stay up to date from now on.

Have you tried to get a mortgage?

They stay on your record for 6 years but most lenders only look at 2 or 3 years data and will accept older defaults on the basis you got yourself out if it and recovered.
They won't accept CCjs or worse though

No Talkin, I was told by high street brokers I needed to wait the six years til defaults not showing. Only asked two.

I paid off the debts today :-) There are a total of four defaults on personal loans and credit cards dating from Jan 2012. I haven't had any NEW defaults since then.

I would be over the moon if I could actually apply for a mortgage now with some hope of getting one!

By July I will have 2 years' self-employed accounts, prior to which was employed. Self-employment showing income of £12 - £16 K (growing each year).

I would ask an independent mortgage advisor, not one linked to a specific bank. We got a mortgage when I had some missed loan payments

NoARmani Thanks, is there any way of picking a good one. I really have no idea where to start with this whole process.

I popped into The Mortgage Shop etc. and asked them could I apply and they flatly said no so I gave up!

If you're near me I can recommend mine (south coast) otherwise can you ask a friend or colleague who has been through the process?

I am in Northern Ireland ;-)
I guess I can ask around, just wondering if there;s any kind of ratings website as there are for so many things these days!
What kind of fees do advisors charge?

High street brokers only want the really easy jobs - they won't touch me because I'm an immigrant with multiple income streams, but a very good credit rating!

Well done for paying everything off. You must be dead chuffed.

Hi, we have literally just moved last week. I had four late markers on my credit file. The last one was may 2012. We had absolutely no problems getting a mortgage.
However we did already have a mortgage and applied through our existing bank so that may have been why.

The only real way you will know is to go to a broker or just risk an application.

OK thanks this thread is giving me so much hope!

There is a co-ownership scheme here in NI where they pay your deposit and you buy 50% + of the property and pay rent to them on the rest, "staircasing" when you can to buy more of it from them.

This is the scheme I would prefer to go through so I need to find out abit more from them about whether I can approach any mortgage lender to secure the finance for their scheme and if they have additional financial criteria (but I think they go ahead if you can finance and property meets their surveyors criteria).

Mrsmorton thanks, yes definitely dead chuffed. Feel like posting it as a Facebook update but won't as I know so many having hard times financially it might seem smug. It hasn't been easy setting up own business as single mum either.

This or something like it is my dream property!

www.propertypal.com/18-greenhill-park-newcastle/317635/photo-14

If I went 50% with co-ownership scheme, I'd be down to pay about 65000 which is definitely a do-able mortgage on my income, in fact I think you have to pay the share you can afford to finance so probably more like 70%.

Now very daft question -sorry- am a total beginner. How can you get a sale agreed on a property before applying for a mortgage? Is it a leap of faith on the part of the seller?

As the co-ownership scheme (like Help To Buy I think in UK) says you need to agree sale before approaching them and then finance. It says bear in mind possible non-refundable "booking fee".

???

Speak to the shared ownership people and see of they have a recommended lender. Shared ownership will restrict your pool of lenders, being self employed will restrict them and realistically the defaults will restrict them. Don't restrict yourself too much. London & country are a fantastic financial adviser. Give them a call and run through it.

Lenders are reasonably sympathetic to short periods of financial difficulty. Their loan will provide your home, so they expect it to be prioritised at all costs. Mortgage defaults aren't generally tolerated

Thanks Elton, yes I guess I have to weigh up whether I'm better off going through the shared scheme which may be more restrictive or saving up for a deposit and buying myself.

I can't imagine I'd ever default on a mortgage as I have always paid rent.

I will try London and Country if they extend to N.I. thanks

Your defaults are 3 years old now so you stand a decent chance especially as pp said, the defaults stem from a defined period of illness. Have you considered adding a notice of correction to your.Credit file to explain why the defaults occurred?

I successfully applied for mortgage with late payments but after default had dropped off my credit file. My mortgage broker said he had secured mortgages for people with defaults recently so it's not impossible. A mortgage broker.can help but I would echo what pp said about shared ownership and new builds being more difficult. Best of luck op

Thanks, I am going to ring round some brokers when the Bank Hol is over. Appreciate all advice and encouragement!