I have bad credit due to miss payments over a number of years. My partner has excellent credit. Between us we earn 62,0000 and have 50,000 saved. Do you think we could get a mortage for 260,000. I don't think I have ccj but have missed three months in a row on some credit. I only have 2,000 of debt left to pay.
I am sure you are aware that it has become more difficult to obtain a mortgage since the start of the credit crisis and one of the areas lenders have clamped down on is missed payments. Any type of credit agreement is a contract between you and the provider and if you have not kept to your side of the contract by making payments when they fall due this reflects badly on your ability and willingness to ensure payments are made.
I expect that you would be declined for a mortgage automatically from everyone apart from some of the smaller lenders who do not use a computerised credit score and specialised lenders who will charge a higher interest rate due to your poor credit history. Whether or not you are accepted by either of these groups will depend on how much deposit you have available? A 25% deposit gives you a far greater personal stake to lose than a 10% deposit and so Lenders can afford to be a bit more accommodating when making their decision.
I recommend that you concentrate on making sure that all your credit payments a made when they fall due and build up a period of at least 12 months since you last missed payment. At the same time the more you can save towards a deposit the better. You should also obtain a copy of your credit file so that you know exactly what is on record:
Equifax Ltd Callcredit Plc Experian Ltd
Credit File Advice Centre Consumer Services Team Customer Support Centre
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.
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.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT.
John Charcol is a trading name of John Charcol Limited and its Appointed Representatives. John Charcol Limited is authorised and regulated by the Financial Conduct Authority. The Financial Services Register number is 665649. Registered in England No. 9157892. Registered office address for John Charcol Limited is 5th Floor, Cutlers Exchange, 123 Houndsditch, London, EC3A 7BU. The FCA does not regulate some investment mortgage contracts. Calls may be recorded for training and monitoring.