Will I be able to get a mortgage after debt?

[TheStruth]

I'm in debt, 4.5k on credit and store cards, 5k on personal loans (these are being paid off monthly though).
It looks like I will have to do a credit agreement or something which is going to heavily impact my credit file.

How long before / will I ever be able to get a mortgage in the future?

The loans themselves won't stop you getting a mortgage ( i have a personal loan of £10k for a car and a credit card.

Why do you need to do a credit agreement?

I got a mortgage with debts totalling £20k lol. Don't worry too much about it as long as you don't miss payments

I've had to arrange credit agreements with them cos I was basically paying off interest only and missing the odd one.
I couldn't keep up with it so now I pay a set amount each month and it's essentially cancelled so when it's paid off it will be gone but it's on my credit record so my score has taken a dive.

Where has the debt come from and what's making you miss payments? You may be able to explain to a mortgage broker.

Debts are from credit and store cards and it's been maternity leave that I underestimated and causing me to fall behind.

If you have an "arrangement to pay," and from what you've said it sounds like you do, these can have a major impact on future borrowing, in many cases they are worse than defaulting.
Neither marker is great and either will usually scare off high street lenders but a default is only on your credit file for six years from the default whereas an "arrangement to pay" is there for the entire time it takes to repay the debt, then another six years. Inevitably you will have a poor credit history for a lot longer.

A broker will probably be the best place to try as they will have a better idea where to go for someone with adverse credit history.

Echoing what others have said. Definitely go through a broker as they look at all your circumstances and know which lenders to approach. I’m on a repayment plan for debt I had over 5 years ago and got a mortgage recently, so you should be okay.

I have recently got a mortgage and with things against me such as payday loans in the past, not much credit history and not on the electoral roll!

I looked at a company called Kensington and they were designed for people who had debts poor credit etc they offered me a mortgage no problem.. however they do have higher rates 600 a month for a 112k mortgage.. I eventually managed to secure one with another company for 375 a month so there is a bit of a difference but it is doable!

can anyone advise the best company to try for lending with poor credit? DP owns this house outright, but can’t mortgage to free up any capital as a) he has a poor credit history and b) his income is a private income replacement scheme that has been paying put since he became disabled a few years ago, and will continue until pension age (another 25+ years).

any help would be very gratefully received..

A broker would be best. They know which companies will lend to people with any issues which could affect borrowing. I would suggest companies like Trussle, L&C or Habito. All free too. I went with Trussle as I had a couple of issues, and I got a mortgage.

Who was the other company you used? If u don’t mind me asking

@OS22 what was the other company if u don’t mind me asking

Stepchange have a mortgage broker type arm. There are no fees to pay and any commission they get from lenders goes back into the charity.

@Ghost1234 hi I used principality in the end. They looked at the average cost to live in the area and compared it to my wage, they only needed one months bank statements and this was really only to check I wasn't gambling and that my wage was actually going into the account..
they used Experian as their credit search as well :)

@OS22 thank you for coming back to me. Our household wage is good,good equity in the house and want to move. Only problem is payday loans (absolutely so stupid to take them out, living beyond means etc) biting us back in the a*se now :(
I’m hoping someone can help. Young and stupid at one point as made it so much harder now

I had 10k of debt thanks to an ex. I had defaulted and slowly paid these off. Had to wait 6 years for all the defaults to leave my credit file but finally bought a house this year!

It's doable. And even doable with debt. There are some adverse credit lenders you could look at, but they do tend to have higher interest rates.

@Ghost1234 I had about 5 payday loans but all low cost and I only defaulted in one, they required no more than £500 defaults and took into account any pay day loans that you had paid back on time, I only finished paying my last 2 years ago

See a local broker, many will see you face to face and talk through it all. You shouldn't pay a fee and ensure your broker is whole of market.

I'm on a debt management plan and managed to get a mortgage with NatWest.

I used CLS Money as my broker, they are pricey but worth it.