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help to buy with defaults/bad credit

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bumblebee2
bumblebee2 Posts: 6 Forumite
in Mortgages & endowments
hi
i wondered if you could help me, i have seen that you cant get a help to buy with bad credit what does this mean?
Does this mean if you have a default you dont qualify? Who accepts you for the scheme and decides what is bad credit?

thank you & happy weekend :)

Comments

  • ACG
    ACG Posts: 24,613 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Its down to the lender.

    I dont think many of the adverse lenders do help to buy. What bad credit is it you have? Also how much deposit (as a percentage) do you have?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • kingstreet
    kingstreet Posts: 39,269 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    The HCA HomeBuy Agent approves your HTB loan, but cares nothing for your credit history. It relies on your ability to get a mortgage from a participating lender.

    The developers normally satisfy themselves you are credit worthy before they allow you to make a reservation.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • bumblebee2
    bumblebee2 Posts: 6 Forumite
    i have 999 experian score & my husband has 750 he has been perfect payment wise for last 3.5 years but 2 defaults 3&4 years ago, all satisfied over a year ago.

    we wanted to do the jan 2014 htb scheme, would this work on the same basis? so if halifax approved us for a mortgage then we could use the scheme?

    thanks for your help :)
  • bumblebee2
    bumblebee2 Posts: 6 Forumite
    Sorry forgot to say we have the 5%deposit of 12k
  • kingstreet
    kingstreet Posts: 39,269 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    You'll have to wait and see if a 95% mortgage is available with adverse credit still visible on your credit file.

    You certainly would not be accepted for NewBuy with any lender I can think of, so I suspect you'll struggle with HTB-MG, effectively the same scheme extended to second hand property.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • bumblebee2
    bumblebee2 Posts: 6 Forumite
    oh no :( that's my dreams shattered. i thought as it was 2 defaults both over 3 years that we might be ok. gutted :(

    thanks for help
  • ACG
    ACG Posts: 24,613 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Do lenders view it as a 95% mortgage if some of the equity is backed by the govt?
    I genuinely dont know the answer to that as Help to buy isnt really my bag, im just curious.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • kingstreet
    kingstreet Posts: 39,269 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    It's NewBuy in disguise. The guarantee will help to create more higher loan to value lending, but I don't see lenders relaxing underwriting criteria for it. In fact, the Government may require them to tighten underwriting, in return for the capital relaxation and the indemnity fund.

    Still, I could be wrong. I'm simply pointing to NewBuy which is HTB-MG in its present form and suggesting you would not get such a mortgage today with visible adverse.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • ACG
    ACG Posts: 24,613 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Thanks.

    I have a feeling come January im going to be pestering you for pointers on this help to buy thing :P I might spend my xmas period reading up on it in more detail.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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