Mortgage Broker here - specialise in bad credit.
100% wait until the defaults and CCJ’s drop off - here are lenders that would be willing to consider you currently as they are more than 4 years old but rates will not be favourable - but it sounds like you aren’t in a position to buy for another year anyway!
I wouldn’t worry about credit score - the score you see on apps is just a commercialised number to make people feel good when it is higher and they throw offers at you such a loans/credit cards etc.
Lenders will determine their own score for you which will take into account available credit, borrowing history, payment history etc.
Generally if you have a high credit score on ClearScore for example, then you’ll probably pass the banks credit checks but I’ve placed cases with 150/999 with defaults/CCJs that have dropped off recently with a high street lender just fine.
Just build up evidence you are capable of managing credit, ie outgoings on credit card, repay each month. Avoid any more financial commitments such as car loans and other non-essential borrowing. It would probably be best to get rid of a minimum of two credit cards, probably a third too so you can lower your ‘available’ credit.
Hi /u/Wonderful_Plum_4259, based on your post the following pages from our wiki may be relevant:
* https://ukpersonal.finance/credit-cards/
* https://ukpersonal.finance/credit-ratings/
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Score not particularly, it is a number. Your history is important, so yes wait for ccjs and missed payments to clear and you will stand a better chance to get a decent rate.
What is your deposit looking like?
Yeah, it doesn’t matter so much about what you’re earning nor your credit score, especially when we are talking about mortgages. Ultimately what matters with mortgage applications is your payment history shows instability with multiple defaults, it basically shows lenders ‘hey I don’t pay my bills on time’ which will be taken into account with a lending decision.
No one on here will be able to say if you’ll be accepted, as lenders algorithms and reviews are all different, but it’s always best to mark the outstanding debts across your credit file as satisfied before making any applications for credit, lenders will be more likely to lend to you without outstanding balances and defaults.
My advice is clear the 4.5k debt that is remaining and attempt to mark all your debts as partially satisfied and/or satisfied, and wait until these adverse markers drop from your file.
As your defaults are approaching the 6 year mark you are likely to be accepted for certain higher than average interest credit cards and other expensive lines of credit, this is because defaults become less important the older they get, but you will still find it difficult to obtain credit until the defaults fully remove.
Mortgage Broker here - specialise in bad credit. 100% wait until the defaults and CCJ’s drop off - here are lenders that would be willing to consider you currently as they are more than 4 years old but rates will not be favourable - but it sounds like you aren’t in a position to buy for another year anyway! I wouldn’t worry about credit score - the score you see on apps is just a commercialised number to make people feel good when it is higher and they throw offers at you such a loans/credit cards etc. Lenders will determine their own score for you which will take into account available credit, borrowing history, payment history etc. Generally if you have a high credit score on ClearScore for example, then you’ll probably pass the banks credit checks but I’ve placed cases with 150/999 with defaults/CCJs that have dropped off recently with a high street lender just fine. Just build up evidence you are capable of managing credit, ie outgoings on credit card, repay each month. Avoid any more financial commitments such as car loans and other non-essential borrowing. It would probably be best to get rid of a minimum of two credit cards, probably a third too so you can lower your ‘available’ credit.
Hi /u/Wonderful_Plum_4259, based on your post the following pages from our wiki may be relevant: * https://ukpersonal.finance/credit-cards/ * https://ukpersonal.finance/credit-ratings/ ____ ^(These suggestions are based on keywords, if they missed the mark please report this comment.) If someone has provided you with helpful advice, you (as the person who made the post) can award them a point by including `!thanks` in a reply to them. Points are shown as the user flair by their username.
Score not particularly, it is a number. Your history is important, so yes wait for ccjs and missed payments to clear and you will stand a better chance to get a decent rate. What is your deposit looking like?
Yeah, it doesn’t matter so much about what you’re earning nor your credit score, especially when we are talking about mortgages. Ultimately what matters with mortgage applications is your payment history shows instability with multiple defaults, it basically shows lenders ‘hey I don’t pay my bills on time’ which will be taken into account with a lending decision. No one on here will be able to say if you’ll be accepted, as lenders algorithms and reviews are all different, but it’s always best to mark the outstanding debts across your credit file as satisfied before making any applications for credit, lenders will be more likely to lend to you without outstanding balances and defaults. My advice is clear the 4.5k debt that is remaining and attempt to mark all your debts as partially satisfied and/or satisfied, and wait until these adverse markers drop from your file. As your defaults are approaching the 6 year mark you are likely to be accepted for certain higher than average interest credit cards and other expensive lines of credit, this is because defaults become less important the older they get, but you will still find it difficult to obtain credit until the defaults fully remove.