adverse credit mortgages

donna1975

bit of background first:

applied for qotes back in march and got back 3 mortgage in pricipal offers, so thought no more until we had actually sold out house, house was originally on for 199 950(march 3rd on market) cut a long story short no interest gradually dropping price and went right down to 159 950 middle of july at this point we looked into part x got an offer of 155 on part x and their house was up for 259 950 got them down to 245 500, so we start looking into getting a mortgage this is where the trouble begins we are finding it extremely hard to get one now.
we need mortgage of 205k selling for 155 buying for 245 500 we have the obvious fees etc to pay and a 6k erc!
oh and we have a wek to do this as the part x offer only stands for 1 week:eek:

thing is once we move we'll be no worse off even though mortgage payments go up as my husband will save £400 a month on diesel.

any ideas of what other mortgages to try? or any ideas of anything im getting really stressed over this

herbiesjp

Are you looking at adverse credit mortgages?

What is the reason for this? Can you give a breakdown of what your adverse credit history looks like? Do you have an up to date copy of your credit file?

beecher

I think you'll need to post salary details to get any real advice on this. Have you tried your existing lender - any chance of them letting you port your existing mortgage to avoid the ERC?

donna1975

he earns 42k a year, i only earn 4k part time but will have to leave this job when we move as the reason for moving is so my husband can be nearer his work.
he has one satisfied ccj may 07 for £1407 and 2 defaults but these are now on agreed payments plans being paid each month.

existing lender is advantage and they have said no they wont port it.

luckyfool

Advantage are not writing any new mortgage business as Morgan Stanley closed them earlier in the year.

You are needing about 84% on the new mortgage, and 4.2* your husbands income assuming you have no other outgoings to credit.

There are Sub Prime lenders who will look at that (subject to credit score), and you will obviously have a better chance if your mortgage was well maintained with Advantage for the last 12 months.

I don't know who you have tried so far (in terms of brokers) but a lender like First National or Igroup are a couple of the few remaining lenders who will offer 85% in those circumstances and at that kind of income multiple. I'm not sure if you have already had a broker try them unsuccessfully for you?

Speak to a fee free whole of market broker with some experience in this area and they should be able to get you a solid yes or no as to whether you can get a mortgage for what you need to do.

Cheers,

Joe

beecher

luckyfool wrote: »

You are needing about 84% on the new mortgage, and 4.2* your husbands income assuming you have no other outgoings to credit.

Isn't it closer to 4.9x salary?

Also, such a jump in mortgage likely to only cost £400/month more for the OP and allow them to be no worse off? Sounds like an enormous mortgage for those wages to me.

luckyfool

beecher wrote: »

Isn't it closer to 4.9x salary?

Also, such a jump in mortgage likely to only cost £400/month more for the OP and allow them to be no worse off? Sounds like an enormous mortgage for those wages to me.

4.88*, was daydreaming.

Obviously the mortgage becomes slightly less scary if the OP is confident she will be able to find work and will be earning 5k+. e.g. With her earning £5k, the joint income multiple is 4.4.

donna1975

luckyfool wrote: »

Advantage are not writing any new mortgage business as Morgan Stanley closed them earlier in the year.

You are needing about 84% on the new mortgage, and 4.2* your husbands income assuming you have no other outgoings to credit.

There are Sub Prime lenders who will look at that (subject to credit score), and you will obviously have a better chance if your mortgage was well maintained with Advantage for the last 12 months.

I don't know who you have tried so far (in terms of brokers) but a lender like First National or Igroup are a couple of the few remaining lenders who will offer 85% in those circumstances and at that kind of income multiple. I'm not sure if you have already had a broker try them unsuccessfully for you?

Speak to a fee free whole of market broker with some experience in this area and they should be able to get you a solid yes or no as to whether you can get a mortgage for what you need to do.

Cheers,

Joe

one broker tried igroup and they came back saying they would only lend 60%, we have never missed a mortgage payment in the whole time we have had a mortgage, but its obviously the ccj and the 2 defaults that are making it difficult for us.

donna1975

do you think if we could stretch and only ask for 80% it would make that much of a difference?

donna1975

luckyfool wrote: »

4.88*, was daydreaming.

Obviously the mortgage becomes slightly less scary if the OP is confident she will be able to find work and will be earning 5k+. e.g. With her earning £5k, the joint income multiple is 4.4.

finding work wont be a problem as i can work with my husband at his place until i find something but its not a definate wage each month, it will just be a stop gap for me, but like i said it may be £1000 one moth but teh next it may only be £300

luckyfool

IGroup and First National both credit score above 60%, and dependant on the score can restrict the loan down to 80/75/60%. I'm not sure whether the result with Igroup would definitely mean that First National would not be able to help, but it might be worth a try.

Alternatively there are other lenders that could be considered especially if you can go to 80%. Additionally you will obviously also be in a stronger position if you were able to line up a job for yourself as well as that would make the income multiple less of an issue.

Regards,

Joe