Adverse Credit History - Trying to get mortgage

Raychel237

We are trying to get a mortgage at the moment, but are struggling because of our credit history. Basically I fell ill around 3 years ago and could not work and our insurance policies did not cover my illness. Consequently we defaulted on payments to our creditors, most of which were in my name. We contacted the CCCS and set up a debt management plan over 9 years - however due to my husband's successful new business have now paid all the debts in full in just under 3 years.

We are trying to get a self-certification mortgage as my husband is self employed and earns around £70K, I work part-time and earn around 8K. We have just been turned down by Bristol & West due to our credit history (We have never defaulted on our mortgage and do not have any CCJ's) - this may be because a lot of our creditors have not updated our credit history files.


Just want your thoughts really!

Thanks!

homer_j_3

There are plenty of adverse risk lenders out there and I am sure that Southerrn Pacific is not the only lender out there for you. Has your FA suggested any other options or has he just left the ball in your court to decide on their request.

Is it possible to repay the loan or is there another reason why you want to keep it? If you keep it does it just reduce the amount you borrow or does it prevent the application from proceeding?

I think for adverse risk the int rate is quite good so would consider this fact. If SP is not an option now, go back toyour FA and see what else is out there.

herbiesjp

Without knowing your full scenario it is difficult to say whether Southern Pacific is the best option here for you.

Paying off the HP may mean tha you meet their income multiples with that commitment out of the way - not unusual for a lender to agree loans subject to clearing other commitments.

There sre other better rates out there, but again without knowing your full current circumstances it would be unwise to point you in any direction.

WHat is the mortgage amount needed?
What is the property value
What is the income from you and your husband?

Does your husband have accoounts to verify his income?

Raychel237

Thanks for your replies

Mortage amount needed is 265K, Value of house is 330K, our joint income is around 80K. We only have 1 year's accounts.

herbiesjp

You may not need to go self certified then - there are some lenders that can take these accounts and get a projection letter from your accountant for the second year.

This could be the difference between the SP deal at 6.09% and another lender at mid 4%s.

Again this is without knowing any of your other details, so difficult to say if it would be available to you as an option.

m00nie

closed at the op;s request