Help Finding A Self Cert Mortgage With Adverse Credit

kalfy1

Hi

I need some help please finding a self cert mortgage with adverse credit???

My husband is loooking for a self cert mortgage up to 70% MAX.

PV - £265K
BORROWING TO BE: £180K

He is self employed, with just about 1 years accounts, although will be by the time we need the mortgage. His earnings are approx £60k from this year.

We have already found out that he has 2 CCJS, although they are form 2 years ago...we didn't even know! But are for £2k between them.

He has been offered a mortgage with First National with rate @ 6.69%.

Can we get a cheaper rate??

I cannot even come into the equasion as I have defaults against me.

Could we get a better rate if we paid the CCJ's off, although I know they would stay on his file for 6 years etc etc.

Some much needed help please. We have been to IFA, but he said that only 2 companies would help...1 : as I have named above, the other I can't remember. I would have thought there would be more than this though...surely?? Even Birmingham Midshires said No!!! and we are definatley not going to Kensington....my Brother & Sister have had probs with them!

Many Thanx everyone.

luckyfool

Kalfy1,

Have you spoken to more than one mortgage broker to get some independant advice? Also the option you have been given, is there a broker fee? If so how much? Obviously you need to shop around to make sure you are getting the best deal. I specialise in Sub Prime mortgages myself but without knowing your full circumstances its difficult to give you any specific advice (I won't even try).

However firstly adding yourself onto the mortgage would not be an issue if your only adverse credit is defaults on unsecured credit (most adverse lenders will ignore these). Generally what they will take into account is CCJ's, any bankruptcy or IVA's, any history of repossession or recent missed payments on mortgages or other secured loans.

In general terms if I was looking at your case I would probably start out looking at Accord Mortgages, Gmac RFC, and Mortgages PLC. I don't see why the mortgage could not be in joint names, and would probably expect, given the size of the deposit/equity to get a rate that is around about 6%, maybe even below. First National are a decent lender and I do deal with them alot, but rate-wise they are not really competitive just now. I would recommend that you speak to another few brokers to get a better idea of what is out there, get their proposals and KFI's out in the post and compare them carefully, both in terms of the product, rate fees and tie ins etc, but also what if any fees the broker will charge.

A good place to start would be with non-fee charging brokers.

Martin mentions London & Country, another non fee charging broker is Moneyquest (disclosure : I am an employee of the latter, though posting here in a personal capacity). You can find either online through google.

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kalfy1

The IFA we had was a non fee charging one who we were recommended. But when he came round, he showed us an example quote from the mortgage business I think with a rate of 4.89%...which as you can imagine I was really pleased about. But he said they did a trial application via Birmingham Midshires as it doesn't leave a footprint on your file???? and he said that they wouldn't even touch us. I was really shocked at this considering they say they take on even IVA cases and discharged bankrupts!! My husband just has a couple of CCJ's, which we haven't even had any post regarding them! SO would pay off if it would help our position.

The CCJ's are for approx £2200 i think to HSBC. My husband didn't pay them purely because at the time he was selling adult products to the public...then found out he needed a license, so then he had to clsoe this down. SO was out of work and unable to pay them back. But now he sells adult dvd's as a wholesaler...(WHICH IS COMPLETELY LEGAL TOO, thank goodness!!), But HSBC, said they didn't want this sort of business with them and they said they were closing his account.! So he is now with Barlcays...who are absolutely fine, but he is just coming up to his first years trading and we recon his profit is approx £60k.

I think I would make things worse for the mortgage as I am currently doing a DMP with Payplan as I owe approx £95k of unsecured credit to about 13 creditors who have all defaulted me. So thought it best to go with my husbands self employed salary only. I have had a look on the internet at TML...are they any good?? I recon if we could get approx 5%, this would be really great for us but up to 6% would be obviously better than we were quoted of 6.69%, which to me does sound like a worst case senario customer!

We are FTB's, so no other mortgage. But currently privately renting for £600pcm for last 2 year, with no missed payments.

Thanks for the advise

inmypocketnottheirs

I was in a similar position a few months ago and the Chelsea building scoiety do a reasonable self cert mortgage with some adverse at about 6.25%. I'm sure a google will find the contact details.

luckyfool

inmypocketnottheirs - not sure what you received but Chelsea Building Society do not offer self cert on their adverse product range.

They do offer mainstream self cert and are one of the most lenient mainstream lenders in what they will allow in terms of previous adverse.
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Kalfy - TML are owned by Kensington, and only sell their mortgages. They also charge broker fees of £2400+

BMSolutions are owned by Halifax and can decline cases for odd reasons, just because they cannot do it doesn't mean you cannot get a competitive interest rate elsewhere.

JOINT - Technically First National would force you to take the mortgage jointly as they will insist on it if you are joint tenants at your current property and plan on living together at the new one. Again despite what you say I still think that having you on the mortgage will probably not adversely effect the rate.


CCJS - paying off the ccjs is a good idea for the future (it will allow you to get back to a high street lender in a couple of years), however it may not make a huge difference to the current mortgage. High street lenders are still going to steer clear as it will look as if you are only clearing them to get the mortgage.

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Speak to a couple more non fee brokers, London and Country are one, another would be Moneyquest (I work @ Moneyquest).

Hope this helps.

emmaHarris_2

In general terms if I was looking at your case I would probably start out looking at Accord Mortgages, Gmac RFC, and Mortgages PLC.

&

I am a mortgage consultant (with a level of specialisation in the sub-prime market)

Maybe this more recent thread could be imformative to those considering taking out a sub prime loan:

http://forums.moneysavingexpert.com/showthread.html?t=186002

stanmoresaver

kalfy1 wrote:

Hi

I need some help please finding a self cert mortgage with adverse credit???

My husband is loooking for a self cert mortgage up to 70% MAX.

PV - £265K
BORROWING TO BE: £180K

He is self employed, with just about 1 years accounts, although will be by the time we need the mortgage. His earnings are approx £60k from this year.

We have already found out that he has 2 CCJS, although they are form 2 years ago...we didn't even know! But are for £2k between them.

He has been offered a mortgage with First National with rate @ 6.69%.

Can we get a cheaper rate??

I cannot even come into the equasion as I have defaults against me.

Could we get a better rate if we paid the CCJ's off, although I know they would stay on his file for 6 years etc etc.

Some much needed help please. We have been to IFA, but he said that only 2 companies would help...1 : as I have named above, the other I can't remember. I would have thought there would be more than this though...surely?? Even Birmingham Midshires said No!!! and we are definatley not going to Kensington....my Brother & Sister have had probs with them!

Many Thanx everyone.

If BMS have said no- then these are probably about right!

But- if you have reservations about your broker- talk to another one!

SS

homer_j_3

Are you purchasing or remortgaging?

If you are purchasing and have 85k deposit then have you thought about settling as much debt of you can and renting for 12 months? If you are earning decent money then you can obviously clear the burden a of a 99k debt to 14k debt, have the CCJ's settled for 12 months and concentrate building up another deposit for a house?

This will then open up a few more options as your debts will be less, you will have the opportunity to get off the DMP and your husband will have 2 years accounts, which will help with prime lenders or those near prime.

If you are remortgaging then have you considered selling and trying to start a fresh as described above? Have you been told how long it will be before you are debt free therough your DMP?

Clearly, if you can get yourself straight over the next 12 months then you will make the necesaary gains when you comeback onto the property market to have made it worth it.

You do of course have to be careful of the housing market becoming unaffordable to you, however, some may say that it seems unaffordable today to you.

You need to really analyse your finances etc and be prepared to accept that the best route for you may not be the one you are trying to achieve.

As people have already said, get yourself to a Whole of Market Broker and ensure that you avoid the likes of TML/Norton Finance/Ocean Finance and the other cowboys that you see on the TV.

emmaHarris_2

As people have already said, get yourself to a Whole of Market Broker and ensure that you avoid the likes of TML/Norton Finance/Ocean Finance and the other cowboys that you see on the TV

definatly endorse this advice!!!