Need help regarding mortgage with bad credit ASAP please.

Bongofish · 7 January 2018 at 2:54PM

hello all!
Me and my partner have a 2 year old daughter and have been renting a property for the last 4 years. I am on £28500 and her on £13500. To make this as quick as possible ill try and cut to the chase. I have had bad credit in the past and I'm currently trying to build it back up. I have my Experian credit report and it shows 1 default from 3 years ago for the total of £150. I did not even notice this was on there till I recently checked and have now paid it. my partners score is excellent while mine shows poor at 696.

we have always lived life paying our ways (and recently paying off any outstanding debt I owed that came back when we looked at my credit file. 1 default and a couple of others that had not turned to default that are all a minimum of 1 year ago and no more than a total of £1k. We now have very little credit outgoings.

My dad found himself in a position to help us out with a deposit. He was willing to put a £75000 deposit down on a house for us. We then found a house we love for £175,000. So we spoke to a broker who found us a mortgage deal and I even asked to make sure the company will do a credit check. He said they did and we both passed (nationwide, even showed up on my report). The issue is my dad wanted a second charge on the property just to protect his money (which is understandable as such a large amount). Problem is the 2nd charge on the property is now causing real issues and we are now trying to get a mortgage with a deposit of £26,250 (15%) that my dad said he will happily gift. if needed it can go up to £36,250.

We have a meeting with a broker tomorrow who has gave us the details of the mortgage and repayments (with the £26,250 deposit) to move further on with it. But I'm wary of the fact I know my credit is not great and a lot of information on the internet points to I shouldn't be able to get a mortgage with a rate of 2.19% fixed (which is what we have been accepted for apparently)

Is this the case? am I over thinking? can we get a mortgage at all? we love this house and ill feel absolutely gutted if we lose out on it because of some small adverse credit. We only have £3000 in savings ourselves and the rest will be coming gifted.

Can someone help me because I feel sick with the waiting and worrying!

Any help will be much appreciated!

Thanks

.Just more information....We have now paid £1000 reservation fee for this new build and the soliciors have started moving forward (probable about £250 worth of costs so far) . As we got told we had been accepted, but now I'm not too sure on anything anymore

amnblog · 7 January 2018 at 3:41PM

Are you saying that Dad wanting a charge on his funds is the problem?

If this is the case you just need a lender that will allow this, I cannot remember of the top of my head if Nationwide will. There are Lenders that are OK with this.

Bongofish · 7 January 2018 at 4:25PM

Hi,

We did get told this. But, non of the high street lenders would do it and then it just seemed a lot simpler process to get gifted a 15% deposit and do it as straight forward as we can.

Do we have a chance with he 15% deposit? especially with a 2.19% rate? I'm confused because we have gone through all this on the back that nationwide have credit checked us and have accepted us.

Just wanting to know if well definitely get a mortgage after reading lots of contrasting things on the internet or we should wave bye bye to the £1250 that we have already put into this?

p.s. He wanted to put a second charge against the house so that if we sold the house it would go back to him (he would give the money back to us, but just didn't want to hand over £75000 as cash which is understandable. So the banks would take there money first and then my dad would get his money back second and he could choose to give the money back to us or whatever.

Also I'm worried with my credit past that is 15% deposit enough to get us a mortgage?

Thrugelmir · 7 January 2018 at 5:37PM

Bongofish wrote: »

He wanted to put a second charge against the house so that if we sold the house it would go back to him (he would give the money back to us, but just didn't want to hand over £75000 as cash which is understandable. So the banks would take there money first and then my dad would get his money back second and he could choose to give the money back to us or whatever.

The problem for lenders is that the second charge restricts their ability to act, i.e. seek repossession. Your father could effectively block the action. Making eviction your impossible.

Bongofish · 7 January 2018 at 5:54PM

Ok but if some lenders will do this it’s still an option?

Also what we are really hoping for is to do it all with this 15% deposit. But with my credit past is this gunna be a no go or will it still be possible?

Fireflyaway · 7 January 2018 at 6:37PM

My parents lent us money for a deposit. We bought the house in the normal way and later approached a solicitor who drew up an agreement stating we owed my parents x upon the sale.
I think 15% is a good deposit. Many buyers only have 5%. I'm no expert but your credit history doesn't sound that bad. Mine is far worse!
Good luck, I hope you get your house.

Bongofish · 7 January 2018 at 8:00PM

Thanks! It’s nice to hear some positivity when feeling so low about the situation. I’m guessing we have had a DIP as we are into the next stage and have been credit checked before they would send out an advisor to our house. We also know the interests and had a 30 mins phone call for affordability.

It may sound stupid but is this a good positive sign or does it not make much difference?

Thanks again all!

Bongofish · 8 January 2018 at 10:59AM

Sorry for bumping this, just wonders if anyone else had anymore opinions as meeting is in a 5 hours and really nervous!

Thanks!

HampshirePerson · 18 February 2018 at 11:00PM

Intrigued how did this all work out for you in the end did you get your mortgage did you get your house?!

Need help regarding mortgage with bad credit ASAP please.

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