Advice Please-I need a morgage lender but I have a default. I have a 10% deposit..

paige13_2

Help and advice is very much appreciated..

I am looking for a mortgage but I have a default on my credit account..
The house I want is £60k and I have £8k to put down as a deposit.
My mortgage advisor is on the ball but today a lender has said the default is a problem and will not lend to me. He will try some others tomorrow!

I bring home £3200 per month and my outgoings are £1100 per month. My partner also gives me £1000 cash.
I have all payslips etc.

In 2004 I got a mobile contract for a family member and they never paid the bill... I have not once heard from the supplier and it disappeared off my credit report. At the end of 2008 it appeared on my credit report but as a different supplier name...I have not heard from them either... (Yes I do receive my post).
The amount is £700 and my credit report company have asked them to provide me with who they are, I am still awaiting this, 3 months later and im still waiting.

In the mean time I require a mortgage and would like advice as to what lenders will lend to someone in my situation.

Thank you in advance for any advice

LP

nw_man

Regardless of who may or may not give you a mortgage, with that kind of income and those outgoings surely you can save up for a short while longer and put a greater deposit down, thereby securing a vastly superior deal, and also maybe allowing potential lenders to look more favourably at you.

paige13_2

Thanks for your reply

I can put 20% deposit down but my adviser said it wouldnt make that much of a difference because of the default....

I have never applied before so am new to it all.

Simon_gloster

you would need at LEAST 25% and the majority of high street lenders would pick this up and decline at agreement in principle. Potentially Abbey would let this through if your credit score is good enough but generally you would have to go to near/almost prime sub prime lenders.

Simon_gloster

Just had a look on a couple of lender sites that ignore defaults and with a 25% deposit with platform you would get 8.69% on a 2 yr fix and beacon would do 6.25% (with a 2% product fee) at 75% but 8.95% 20% deposit. I really think you need a bigger deposit. At least now you know not to take credit or buy for someone on your name and you rely upon that person to repay.

poppy10_2

paige13 wrote: »

I can put 20% deposit down but my adviser said it wouldnt make that much of a difference because of the default....

Your adviser is an idiot. With a default a larger deposit becomes even more important, the lender's perception of your risk rating. Get a new mortgage adviser ASAP.

m00m00

so you have a total disposable income of 3100 a month (after the 1k in cash), and you want to buy a 60k house ?

you are getting 5% of the value a month. Just save up a couple of years and buy the thing outright, why the desperate rush to buy now ?

poppy10_2

m00m00! Where have you been? We've missed you...

paige13_2

thanks to everyone for replying.

m00m00- Over the years ive wasted my money, holidays cars, kids etc....

The house was on the market for £85k and as its a family friend so they dropped it to £60k for me...Also my grandpa lived there many years ago. Im buying it as a second home and for my childrens future.
Im putting a 20% deposit down and my advisor has found a deal! 2 years fixed rate at 6%..


Cheers
Lp