Big deposit! bad credit history :( Crystalpinks

Greetings members!

This is my first post so please be gentle!

I've had a good look through the threads but I haven't found much similar to my situation so here goes...

My mum is downsizing her property and offered to gift me a deposit of 80-100k, I'd be the sole applicant with an income of £20k. I'd like to either borrow around £60k for a £160k home or borrow a similar amount for a £190k home, making up the rest with help to buy equity loan.

Problem being my credit history. Last summer I had rough time with some big family issues and (stupidly) neglected my finances a bit for a period of around 4 months. I was naive and had little understanding of credit scores/CRA's and seriously underestimated the damage I'd cause.

Long story short I had one default of £67

Arrears of 3 and 4 months on British gas (2 accounts-one gas and one leccy-totalling around £400) and Tesco credit card account (about £150)

Before this bad patch, and since, my credit history has been brill.

In October last year I paid off everything, so no debt outstanding other than my hire purchace car which I pay £200 a month for.

I have 2 kids, who are desperate for their own bedrooms whilst we rent a 2bed house for £525pcm, I can't afford a 3bed rental in this area and moving elsewhere is not an option. I know if I could secure a £60k mortgage I'd be paying less each month-which is so frustrating. Plus my landlord is keen to sell the house- which makes things even more desperate!

So I suppose I just wanted some advice on what others think my eligibility is likely to be with this wreck of a report! (Considering I'd only be looking for about a 38% LTV)

Thanks in advance

The equity loan mortgages are only available on new builds. I do not really do equity loan mortgages so can not comment on them but assuming you were after a "normal" mortgage I think you should have option, but the rate may be a little higher than high street rates. It may not be, but just prepare yourself.

You could really do with getting your credit reports infront of someone experienced in mortgages with adverse credit.

Thanks that is reassuring.

I've signed up to 'Trussle' for some advice- just to dip my toes in the water- they have my credit report and have arranged to call me (in two weeks!)

Do you think it's worth me approaching my bank (Lloyds) for advice if I showed them my file? I've been with them for more than 10years and never missed payments or defaulted etc with their current account or credit card, also have my help to buy ISA with them.... I guess I'm reluctant because I've convinced myself they'll either laugh me out of the bank or apply for an AIP which will fail and damage my score further!

With Trussle you fill in your details and send credit report (if any credit issues) and they contact you to arrange a call back to discuss options- the next available call back was 9th March! My only guess is their recent rise in popularity vs their amount of staff?

It did bother me a bit, if I'd known it would go this way I wouldn't have bothered...

Just to update on Trussle, they called me today and were literally useless. The broker rang me having not even looked at my credit file that I sent two weeks ago and had to go and find it during the call. He sounded completely disinterested when I said I hadn't put any offers in yet.

He said that late payments weren't that big a deal and the default was registered in Jan 16 so shouldn't be too big an issue.

He couldn't really answer my questions and was very vague- basically said I need to put an offer in on a house before he can be any more use.

I'm the meantime I've done soft search AIPs on a couple of high street lenders websites (which I realise are not that reliable)

RBS and NatWest came back ok

Halifax and TSB came back as a no- based on credit score.

Back to the drawing board I guess! Can't believe I hung around for a fortnight for that!

It also looks like my husband who is a full time student will need to be added as a dependent along with my 2 kids so I'm feeling really hopeless at the moment! ��

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