Morgage with old defaults and confusion

Pammy

Hi,

I am looking at buying a property with my boyfriend. We have a 70 thousand deposit and looking at around £250,000 property. I believe thats the lower limit stamp duty cost.

Anyway I have a couple of questions.

I have two annoying defaults on my account from 4 years ago. One for a catalogue and the other a mobile phone. All settled long ago. No other issues and alll accounts kept up to date since.

I spoke to a morgage advisor who told me these could be a problem. I'm scared to apply if thats the case. Should I wait two years?


Has anyone heard of Countrywide Morgage services? These are the guys advising me. I was advised to go for a fixed rate.

Is that good or bad advice?

Any help with the above would be appreocated. We are first time buyers and I am utterly confused by the whole thing.

Robert_Sterling_3

Pammy wrote: »

Hi,
I am looking at buying a property with my boyfriend. We have a 70 thousand deposit and looking at around £250,000 property. I believe thats the lower limit stamp duty cost.

I will do the easy bit.
The Stamp Duty is 1p in the pound i.e. £2500

Pammy

Thanks Robert. They told me it is 1% for anything 250,000 and under then its 3%

The thing is I'm just really not very trusting of advisors. Everyone is out to make money these days and you really need your wits about you.

I'm not even sure if going through Countrywide is the right thing.

Robert_Sterling_3

Yes 1% up to £250,000 then 3% up to £500,000 then 4% after that.
....................................................................................
Have a look at some Builsin Society Web Sites
They are all here http://www.bsa.org.uk/ ( an MSE permitted Web Site )
Check Nationwide and others to see what is on offer.
Remember lenders will only sell you their products.
Happy hunting.

samay007

Hello Pammy,

I have dealt with Countrywide mortgages and they are not good. they are not whole market and they don't have good deals at the moment. you should look for IFA.

since the default are 4 years old, you should not have that much problem in applying if its a lesser default amount. Normally lender won't consider mobile contract defaults. what is the default amount for catalogue? if you have them paid, do you have the receipt? if so send a letter to all credit agency (Experian, Equifax and call credit) saying that it has been settled.

Pammy

Thanks Samay.

It was for £500.00 and all paid a long time ago. Its down as settled on the report. Should I still write them a letter?

I will look into IFA. Thank you

herbiesjp

Some lenders may have an issue with them

Offer lenders are more flexible with problems on catalogues and mobile phones, as they as known for being particularly heavy handed in issuing such things.

Being FTB have they not taken the time to explain anything to you? i.e teh reason why they are looking at fixed rates etc?

Pammy

herbiesjp wrote: »

Some lenders may have an issue with them

Offer lenders are more flexible with problems on catalogues and mobile phones, as they as known for being particularly heavy handed in issuing such things.

Being FTB have they not taken the time to explain anything to you? i.e teh reason why they are looking at fixed rates etc?

They said the variable rate wasnt an option right now and tried to convince me of a fixed rate. But I wanted to check it out first.

herbiesjp

Maybe they mean they are not that competitive - which when looking a tracking margins would be a fair point to make

At 72% LTV you will have lots of fixed and variable rate options available to you.

So they have to recommend deals based on what YOU want, after having considered all options - if they have simply said varaible rates are not an option, and not shown you any kind of comparison then they are not really doing their job in explaining different mortgage rates types to you.

If looking at fixed rates because your budget is tight then they would need to say that as well.

They do not seem to be doing the hand holding explanation of mortgages that I would expect in a First Time Buyer scenario

I think you should find a good whole of market adviser to help you through this and explain the ins and outs of mortgages and the mortgage process, along with how the defaults could affect any applications you make.

Conrad

Keep in mind Countrywide are the B & Q of mortgages. As an example; An expereinced adviser knows how to complete an application to maximise your chances, whereas these guys, often fresh from training simply do not have the expereince in general. They will have learned from a training officer and for sure the training officer has probably never sold a mortgage in her life.