Hi All,
First time poster… only recently discovered this forum and found it very interesting and informative.
I have a question about bad credit rating.
I screwed up a few years ago, made some poor choices and ended up with 4 defaults totalling about 15k. Later I got out of uni… got a nice job,,,have been working fulltime since. I also got in touch with the credit agency that was managing my defaults after the banks passed them on to it and started paying back the amount I owed (which was now up to about 20k after allthat accumulating interest).
My question is, is there any hope for someone like myself? I really want to buy and get in the property market while times are good for the first home buyers…
What are the steps I can take to get back on track? Once I completely pay off whatever I've owed, and show that I have been earning a steady and good income for 3+ years fulltime, will I be treated like normal, or will the lenders look at the paid defaults and still put me in that high risk category and ask for big down-payments and a much higher interest rate?
Any advice would be appreciated. What are my best options?
Yes still a hope but be wont be accepted by any of the majors.
Probably max lvr 90% and expect higher interest rate and set up costs.
Richard Taylor | Australia's leading private lender
Thanks Qlds007.
So even after paying my defaults, and showing good steady progress, I'm doomed? What do the lenders look at? When we say higher interest rates, how much higher am I looking at? And when can I expect to be treated as a normal low risk borrower eligible to benefit from the lower rates? Can it be while ive got paid defaults on my file or AFTER everything is completely wiped clean? Are there different types? higher down-payment and lower rate? Minimum 20% deposit and higher interest rates? Does it depend on my income and borrowing power at all? Or I can forget dreaming till the file is completely clean?
Would really appreciate any input from the gurus… Complete novice here, but someone whos got the itch to really get up and do something.
KR
You are unlikely to get any of the majors to touch the loan over 80% as their respective mortgage insurers wont provide cover.
You wont get 95% LVR but maybe 90% (In fact have a couple of non high street lenders who would do 3 defaults at around 6.29%).
Regretfully in the current climate lenders can pick and choose their deals so other alternative is to wait for the default to be removed (not a short wait unfortunately).
Your income will help but not much. If you cant show you service the loan you wont get it approved anyway.
Richard Taylor | Australia's leading private lender
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