Adverse Credit Mortgage

inamess200

Apart from First National does any one know if there are any other adverse credit mortgages around - house worth 125000 mortgage wanted £100000. Some of the deposit (15000) comes with a 2nd legal charge - employment helping us get on ladder giving me a lump sum against future bonus's . First National have known this all along and now after paying the survey they have decided they can't lend with the 2nd charge - why did they not tell us this in the first place:mad: Lending to salary ratio is 2.5 my single salary or 1.5 of joint salary ( husband not been in work long so we did not take his salary into account when applying)

We are on a long term DMP and are renting privately but need a larger house ( 3 fast growing children in small 3 bed currently) - mortgage will be less than new rental amount!!

arkie

unfortunatley not im afraid, first national/igroup are the only lenders left, The risk is very high with any lender due to the second charge , it works out at 92% LTV>You would be be best paying what money you have for your deposit to your creditors in the DMP as when/if you buy and as mentioned you reduce your outgoings the DMP will want more money as you have more money to spare monthly. My opinion is to keep away from DMP's as they effect your credit rating for a long time ( ie , its will state "arrangement " on your credit file for 6 years after you have finally paid off the DMP. My advice enter an IVA and your credit rating will be clean in 6 years guaranteed.

Conrad

No other options Im afraid unless you get rid of that second charge.

Arkie I think bankcruptcy is far superior to IVA, and lenders view both the same in terms of credit rating impact. IVA's hang about, Bankcruptcy is done and dusted and in my experience all the nonsense about not being able to operate a business or bank account are such theoretical fairy stories.

arkie

bankruptcy could be the best route, the problem we could have is the fact that there is spare money at the end of the month to pay the DMP and the courts may feel that the creditors getting something (IVA) is better than getting nothing.
Fair point Conrad

inamess200

Which is fine - but bankruptcy would mean me loosing my £40k a year job!! so not an option and when I looked into an IVA I felt that the limits were very tight and with 3 small children and a sick husband and no benefits a DMP gave us alot of breathing space. That was 3 years ago - when I first started repayments were for 25 years!! now down to 12 years left to clear everything and when I increase them later this year I will have 8 years left for them to be cleared. However my credit record just shows defaults not arrangement!!

Oh well i got in this mess and it looks like a LL will love me for a long time - i can keep paying his mortgage not my own - as doesn't look like we will ever get a house.