What chance do we have of getting a mortgage?

Posted on 1 September 2012 by Nigel

My wife and I have poor credit rating CCJs & defaults but all cleared. We wish to move and have 50% equity and require £150k.  Our pensions £55k a year.  What chance?


With 50% equity your chances of getting a mortgage are greatly improved, but your age and credit record are going to stand against you.  Unless you are eligible for an equity release mortgage, most lenders are going to want your mortgage term to expire prior to your 75th birthday.  This may only give you a short term in which to repay the mortgage and lead to very high repayments. 

If you do meet the lenders age criteria and can afford the monthly payments your credit record is going to be a major obstacle.  Depending on how much the CCJs and Defaults were for, when they were registered and how long ago you cleared them some lenders may take a look because of the amount of equity you will be investing in the property.  Without seeing a copy of your credit file and having a good explanation of why they occurred and what has changed to prevent it happening again I can not be confident that we will be able to secure a mortgage for you.

However, 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 assess if we are able to help you.


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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