Royally Stuffed by the credit crunch.

StuTheDon

Shakethedisease wrote: »

Thanks. Again sorry for the vent, was feeling a bit depressed about the whole thing last night.

The house was ex-council, but a long time ago. It's a 1920's 3 bed, with a huge garden. When I viewed the vendor gave me a copy of the last survey done about 8 weeks ago ( fell through as the other couple haven't sold their house yet )..It was valued at £110k.

Hubby has been contracting for 18 months. The last 12 with the same company his contract is up in Jan, but likely to be renewed.

My ccj is for £248. From Next catalogue. One of those annoying oversights ( moving around lots in the armed forces).. that comes back to bite you on the bum years later ! When I contacted the court it seems it was Moorcroft that took over the debt, and they issued the ccj. I will of course pay it off, but that won't help now. Hubby did have a default, but British Gas wiped that as it was their mistake.

Hubby approached London and Country first. They were confident we'd get a deal through Abbey. I was a bit surprised by that with the ccj. They turned us down. L + C gave up on us.

Last few days has just been phoning around and seeing where we stand. Seems those that are ok with the ccj won't entertain the fact that hubby pays German tax and is a contractor. And those that are ok with the tax situation, won't look at us because of the ccj.

All of them were hopeful that if we got down to 50 or possibly 60 % ltv that we'd be ok and that was subprime. Looks like we'll have to save like mad and hope this house stays on a bit longer.

I'm surprised - we have jsut moved back to the Uk after living in Dubai for 3 years and we were able to get a mortgage from C&G whilst we lived abroad and did not pay UK tax.

I had to show payslips etc but we were not living in the UK when we applied, and received, our mortgage.

opinions4u

michaels wrote: »

Makes no sense to me though with 25% deposit, where is the risk to the lender even if the borrower defaults surely the collateral will cover the money lent?

£100k house
£75k mortgage

20% drop in house price
£5k arrears
£2k legal costs

You have an £82k debt on a house worth £80k (except as soon as it's obvious it's a repossession its value will collapse by another £15k).

There's the risk.

Shakethedisease

Thanks everyone. Sounds a little more hopeful now. I think instead of endless phoning I'm going to make an appointment with a local broker that knows what they are doing and take our credit reports along.

Wish me luck !!

herbiesjp

Just ask them if they have dealt with similar cases. and please do not let them carry out any credit checks with any lender unless they know beforehand that you will fit criteria - otherwise they will be doing you more harm than good

Conrad

Just make damn sure the broker is up to it. I often get clients that were told by local brokers here, it couldn't be done. Sometimes it can take weeks of research to place a case, but often you find a broker is not registered with every lender even though theoritcally they are able to access such lenders.

If the brokers business card and IDD state they are part of a network, be aware this means the network take responsibility for claims of misselling / malparactice, which means the netwroks own insurers place additional burdens on the network to gather additional information from clients EVEN IF LENDERS DO NOT REQUIRE IT!

Dan_1976

Your broker will need to be up for it and up to it. Its a tricky job that requires a human touch and not a yes/no from a computer keyed agreement in principle.

The ex council thing is not an issue, its now private. He contracts in the EU, so as long as he is not from outside the EU you should not have an issue with that.

YOur credit score may be an issue and you will have to have a good excuse handy!

Good luck

Shakethedisease

Just an update, so that anyone reading this thread can see how we're getting on. I visited 2 brokers locally. One, after going through all our details recommended the deal we'd already been knocked back for. The other suggested I might want to try on my own income and go 'self-cert'.. but it was a vague hope.. Seems the mix of a ccj, self-employed only for a year ( me ), contracting and german tax ( hubby ) was a bit too much for them.

I did a bit more scouting round the net and last ditch attempt phoned a broker from Go Direct for a chat.

Up shot is I got myself an accountant who did all my accounts for the last 12 months and is filing my tax return for me. He's also willing to certify my income for the year. He was worth every penny !

The broker took my details and came up with a possible mortgage with Beacon. 3 year fix at 6.15 %. Horrendous fees of course but I guess that's to be expected with my ccj. But at least the monthly payments would be well within budget ( about £500 ). I don't think Beacon do AIP's ? But when the broker got back to me he said I'd passed the affordibility and credit checking criteria they have.. so it was just a matter getting an offer accepted on the house and taking it from there. No guarentee's of course, but at least it's a chance.

Ok just thought I'd update you all. Thanks once again for all your help :T

thriftymomma

Sounding promising. Hope it all goes through smoothly for you. Please do continue to update!

unite79

Beacin di di AIP's.

Shakethedisease

Do they ?

I must confess my mobile was cutting out ( needing charged ) while the broker was talking.

When we spoke about 1pm in the afternoon and I told him of the accountant etc he said 'he'd get on to the lenders' with my details and get back to me. He phoned about 5pm to let me know that there was no news yet but he'd know if things were 'ok to go' by tomorrow afternoon and would phone me then.

He phoned back unexpectedly at 6pm to say Beacon HAD got back to him and that I'd passed all credit and affordibility checks with them. All I had to do now was get an offer accepted on the house we are interested in and get back to him to 'get the ball rolling'. He sent me a KFI pdf. But there it said the illustration was only valid for the day it was generated.

Oh well, will see how it goes and will keep you all updated. Going for a 2nd viewing tomorrow and then if all goes well will make an offer and take it from there. Nothing to lose right !