Bad credit. Is it possible to get a mortgage?

[avatajan]

I have two defaults in my credit report, one from 2022 and one from 2023. I have fully paid them off now.

I have no debts and have stopped missing payments.

I missed 16 payments in 2023, 13 payments in 2022. I was a struggling student and single mum, along with the aftershocks of covid.

I'm about to finish my degree and have a salaried job (im currently 0 hours around uni).

Is it unrealistic to get a mortgage this year? I feel like I've really messed mine and my son's future up.

I think your chances are very slim, next to nothing, especially with a 0 hour contract, that's without even considering your previous debts and missed payments. Perhaps book an appointment with an advisor who can give you information on improving your credit score and once you've finished university look for a better job

Sorry I wasn't clear enough.

I meant once I am working in my contractual job, for say 6 months. Would it be possible?

I'm still going to go with no. Mortgages are difficult to get these days, even if you have a 20% deposit, two incomes and two excellent credit scores, it's still hard. But that doesn't mean it'll never happen for you, I'd say think of it as a 5 year goal

You need to speak to a broker. You can get specialist mortgages where you have an imperfect past, but the problem is they tend to be very expensive, and given where interest rates are today vs a few years ago, you may find not affordable for you. But that's a conversation for a broker.

There are plenty of bad credit mortgage brokers out there so nothing is impossible.

The problem is that these mortgages are at sickeningly high rates - possibly x2 or x3 the average rates - and this usually limits affordability so much as to make it impossible.

Your credit rating will improve with every year that passes and 6 years after the last default will be clear. As the pp said, I'd make it a 5 year goal and save, save, save to get yourself into the best possible position in 5 years.

Why is it the future messed up? Why not rent for the next 5 whilst repairing your credit, saving what you can improving your prospects?

Why has it got to be a house bought right now or future lost?