Louise, a mother of three, never imagined she could secure a mortgage due to her poor credit history. However, after moving into her first home with her family, the 43-year-old is encouraging others in similar situations not to lose hope.
Having started saving for a deposit six years ago, Louise and her husband faced challenges due to her previous £15,000 debt and defaults on her credit file. Negative marks, like missed payments and defaults, can linger on credit reports for up to six years in the UK, impacting mortgage applications. Seeking advice from a specialist mortgage broker is crucial for individuals with bad credit as their options may be limited compared to those with good credit history.
Despite initial doubts, Louise and her husband, both in full-time employment, managed to pass affordability checks for their monthly mortgage repayments. A broker helped them navigate the process, leading to approval for a mortgage from the West Brom Building Society, overlooking the imperfections on Louise’s credit file.
Elated by the approval, Louise shared her relief, emphasizing that affordability plays a significant role in mortgage applications. They secured a mortgage for their £192,000 four-bedroom home in Prudhoe, Northumberland, with a 5% deposit of £9,600. Currently on a two-year fixed deal with a slightly above 5% rate, they aim to lower it upon remortgaging next year.
Louise’s story serves as a beacon of hope for those facing similar credit challenges. She advises others not to lose faith, highlighting that despite adverse credit, owning a home is achievable with perseverance and a positive outlook.