Defaults

Posted on 22 April 2012 by Peter


Hi, my girlfriend and I are busy saving for a deposit and hope to have roughly just over 10% in a deposit. After I left university my priorities were all over the place and I fell behind with a couple of credit card bills that were defaulted in January 2010. Getting my act together I worked hard to pay the default balance off in full for both (£500 & £2500) as I want to buy somewhere with my girlfriend. I have since kept up to date with absolutely all of my bills and never miss a payment. I even took out some higher interest credit cards to help improve my credit score but it doesnt seem to have had much affect looking on experien e.t.c. My question is, do you think this will stop me getting a mortgage at all? I have already accepted that we might have to pay more but am worried we may be shut out altogether. My Girlfriend earns roughly £30,000pa with a £4,000 bonus and I earn £25,000pa but also work a part time job for 'cash' of roughly £5,000pa. - Thanks for your help in advance.

Peter

As the defaults were registered over 2 years ago and have now been paid off I think there is a chance that you could qualify for a mortgage.  However, it is likely that you will need at least a 20% deposit on top of the amount need to cover legal fees, stamp duty and other miscellaneous costs.

Depending on the rest of your personal circumstances, I believe we can help you and that you would benefit from speaking to one of our independent mortgage advisers.  Please call 0344 346 3672 and tell the consultant the date and title of your question, they will then be able to either find the right mortgage or advise you how to proceed so that you have a better chance in the future.

Peter

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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