Chance of Mortgage with Bad Credit History..

depends on a number of things such as your income, what the 'bad credit' was (CCJs, defaults, missed payments?), how much it was for, when it was repaid if at all.

Post a little more and I am sure that someone will be able to point you in the right direction.

In most cases, your best option would be to talk to a whole of market broker who has experience of your type of situation and won't take the mick by charging an extortionate fee.

Do not be afraid to talk to them, they will come across people in your situation every day and, in most cases, will have seen a lot 'worse'.

Hope this helps

starving wrote:

i have enough for a 50% mortgage on £100,000 house.

ive tried everywhere, but no one will touch me i have no ccjs, only a debt which has been passed onto debt collecting company and has now been paid.

all i get from banks "computer says Noooooo" in little britain style.

apparently i'm considered a "bad risk", can someone explain how i'm a bad risk, if i default on a mortgage and the bank makes an immediate 100% return on what it has lent me ?

i have managed to find a few companies who will lend but they take the pizz, rates about 12%, which is far higher than my what my credit card is, which incidently i can raise £25k on and was awarded it after becoming a so-called "bad risk"

so if your looking for a 95% mortgage , you simply have no chance.

Based on what you have posted here http://forums.moneysavingexpert.com/showthread.html?p=1024217#post1024217 , I would not be surprised if the main issue was your lack of 'usable' income rather than the previous debt problems.

IMHO, this means that your situation and that of welshlass are different.

You may find that a whole of market broker is able to find a better deal than you have been offered as manylenders that look at previous credit difficulties do not have a high street prescence and most people may not even be familiar with their names; however, many of them are wholly owned, independantly operating subsidiaries of a high street lender. They market their services predominantly through brokers (as the sector is one where advice is normally needed and certainly advisable) and therefore may not be easily found by looking through the phone book.

starving wrote:

. apparently i'm considered a "bad risk", can someone explain how i'm a bad risk, if i default on a mortgage and the bank makes an immediate 100% return on what it has lent me ?

Believe it or not, lenders would actually prefer not to reposses a house. As well as the costs involved, there can actually be issues in repossessing and the courts will want to see that all efforts have been made by the lender to come to an arrangemet with you if you 'default'. It is not as simple as you miss 6 months' payments and they take possession in month 7. On top of that, no lender wants the adverse publicity that may come with repossessing the house of someone on disability benefits when they have so much equity and "it was probably the bank's fault for lending them so much in the first place."

Sorry if this sounds a little harsh, but I want to help you understand that a bank will carry out a 'risk assessment' on every application and will make their decision based on which cases will make them the most money with potentially the least hassle and most security for them. Afterall, lenders have to 'buy' the money in the first place and want to make the most profit on the rate they are being charged that they can.

This means that, given the choice, lenders would rather lend to the person with little equity but the income to make the repayments than the person with plenty of equity, but little or no income who represents a higher risk of default leading to increased admin costs in terms of attempts to collect arrears, court costs to repossess, adverse publicity, sale/auction costs, increased FSA scrutiny as they are seen as a potentially irresponsible lender, increased Higher Lending Charge premiums as the insurers see faults in their underwriting etc etc.

I am sorry to hear that you have had difficulties in finding the mortgage you need, however to say that welshlass simply has no chance is simply generalising and probably wrong.

Speak to a Broker - they are best-placed to look at the wider-availiability based on your individual circumstances - pick one out that is recommended on here, and one that is fee-free.

All the best :j

I've been told to forget about getting a 100% mortgage if you have even just one default. Is that true?

sandanista wrote:

I've been told to forget about getting a 100% mortgage if you have even just one default. Is that true?

Not neccesarily as it will depend on age of the default, how much it was for and whether it shows as paid - depending on the answers to these, there may be lenders willing to do 100%.

Hope this helps