Applying for new Mortgage late payment arrears 85%LTV

mrs_snuffles

Hi can anyone help
I want to apply for a joint mortgage - Boyfriend has no arrears and £10k o/s personal loan (car) that he will settle upon completion

I have £27,000 O/s in unsecured debt that will be settled upon completion, however I have two credit cards that had up to 3 months arrears - NOW ALL UP TO DATE

I have a low credit score 494

purchasing house £294k
Deposit 15% and borrowing £249k

Our joint income is £86,000 with 1 dependent

my mortgage adviser has packaged it and sent it to Halifax. However, should we be applying for a bad credit mortgage? As i feel they'll take one look at credit score/bad payment and think why should we lend to them?

Does anyone have any pointers? Is it possible to get a mortgage and if so - where should we be looking? should we be applying for a bad credit mortgage instead of highstreet lenders?

Any info would be great!
Thanks
:rolleyes:

luckyfool

Has your broker already obtained an agreement in principle for you? If this was accepted then I don't see there being too much of a problem. Did the lender request bank statements? If so that would suggest a marginal pass (C-pass), and in that scenario the underwriters would be scrutinising your statements to check how you are managing your finances, to see if they think you would pay the mortgage.

I don't know enough about your circumstances to be second guessing your broker, however the reason he hasn't looked at sub prime lenders is likely to be that there are no sub prime lenders that would touch an 85% mortgage just now. 80% is the absolute maximum, and at interest rates that are distinctly unpleasant until you get under 75% at least.

koexelek

mrs_snuffles wrote: »

should we be applying for a bad credit mortgage instead of highstreet lenders?

:rolleyes:

Worth trying the high street first. They can only say no. Your broker must thing Halifax will consider it, so there is a chance.

Most of the " bad credit" lenders only go up to 75% loan to value now though

herbiesjp

All the figures stack up so no problem there

Fingers crossed it will get accepted - did you give a copy of your credit file to the broker?

You would always try to get a mianstream deal first if possible in order to get the more favourable rates - apart from the fact in this situation you will only limited adverse credit options

Conrad

I do not think any lender will be able to do this at 85% I'm afraid.
The underwriter would be faced with justifying the debt is affordable when you were unable to demonstrate a propensity to pay much smaller debts on time in full.

This then presents a problem were the applicant to fall into arrears - from a regulatory stand point the question would be why was someone granted more debt when the evidence was not in favour of the mortgage being granted.

JayneG

luckyfool wrote: »

Has your broker already obtained an agreement in principle for you? If this was accepted then I don't see there being too much of a problem. Did the lender request bank statements? If so that would suggest a marginal pass (C-pass), and in that scenario the underwriters would be scrutinising your statements to check how you are managing your finances, to see if they think you would pay the mortgage.
QUOTE]Don't lenders request bank statements as standard now? We have been asked as part of our application to provide our latest bank statement but I thought that was normal?

happybroker

varies from lender to lender really. OP has applied to Halifax who ask for 3 months bank statements on a "c" score which is low.

there are a couple of lenders who ask as a matter fo course, especially if it is high ltv or there are a couple of late payments to credit cards and the like on the search.

I wouldn't worry if there is nothing out of the ordinary on there.