Mortgagegood Deposit But Bad Credit

Q: I'm hoping someone can offer a bit of advice. I am a first time buyer in full emploment and have had an offer accepted on a house for 118,000. I'm in the position to put down a 40% deposit on the house, but unfortunatly I've got a rubbish credit history with a couple of defaults (nothing over about ??800) and lots of searches from about 2 years ago after I graduated and was awful at managing money. I managed to sort it out a bit now, I have a better paid job and have a credit card/small loan and mobile which will show rows of 0's as they are paid off each month no problems. I'm looking at a low fixed rate mortgage from the halifax at the moment. I would like to know whether it is likely I will be able to get a mortgage from high street lenders given the size of my deposit, or whether I will have to go for one of the 'sub-prime' mortgages offered by other lenders

A: Firstly, I would suggest that it is somewhat irresponsible to make an offer for a house without being certain you can get a mortgage. Unless, of course, you have told the agent, or owner, of your situation? A 60% loan should be fairly straightforward, but the only way to find out is to try. Tell the Halifax your exact situation and see what they say. Perhaps tell the Abbey National as well, and see what they say. If they are negative, you may have to try another route. Whatever you do, do it quickly, and put the vendors out of their misery so they can get on with selling elsewhere. .

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