Mortgage with adverse credit?

dippydog_2

Can anyone tell me of any companies that are still offering mortgages despite adverse credit?

We had an AIP from RBS on the basis of 4.25 x combined salary. Loan would be 110k and the purchase price was 175k - we were putting in a deposit of 65k.

That house purchase fell through and we had a new offer received on another house.

This time purchase price was 160k and we wanted to put in 50k deposit levaing us 20k for renovations.

However today RBS have rejected us on the basis we had adverse credit three years ago.

We really want this house but have been told by the mortgage advisor (not independent) that the best she can get us is 92k at 8.39% with Platform? This means we would have to put in a deposit of 68k and would have not enough money for the renovations but also would be paying way over the odds.

Longshot but would anywhere else offer 4.25 x salary to somebody with adverse previous credit but with a largish deposit without paying such high rates?

I'm devastated.

Thanks for any help.

luckyfool

Depends on the type of adverse credit. If it is ccjs but over 3 years old, or defaults at any time, or mortgage arrears over 12 months ago then there are probably options at 75% which would work for you at significantly better rates. Get a second opinion from another broker who is whole of market. It will depend on how it fits on affordability with many lenders . . . not just income multiples but the number of adults in the household and number of dependent children can all impact on the amount that many will lend.

dippydog_2

Thank you,

No CCJs, just a default on a mortgage three years ago (which was settled within two months) and also one credit card in my husband's name that he did a payment agreement on. We have cleared it now so it is no longer outstanding but will show on the credit file for some years yet.

suzy83

Hi, Me and my partner had to go with a company called Beacon Homesloans. I had 2 defaults from 2005 and have never been in trouble since, however, this was our only option.

we have a 25% deposit and the house we bought was £110k. Beacon Homeloans offered a rate of 6%.

dippydog_2

Thank you so much, that is useful to know, I will check them out!

talkalot

Have seen quite a few people ask will I get a mortgage with adverse credit ? Its not just your credit file they take in to to account. Its the LTV, how long you have lived at that address (if re-mortgaging) how long you have been working for ect. A little about my background then you decide if I am a high risk or not.
Good
Married for 5 years no children (yet). Lived in the same house for 10 years been with the same job for 10 years. 2 wages coming in. House worth £160,000 mortgage amount £81000. Never missed a mortgage payment
Whats bad
19 defaults in 2007, Did a full and final IVA in August 2007 completed last year. Owed over £95000 on credit cards and loans. repaid about 35p in the £ with IVA so over £50000 written off. Have not missed any payments since August 2007.
Yes I ended up with a re-mortgage from HSBC but am I a risk at the moment ?

dippydog_2

Well yes I think so on the basis we are comsidered high risk and have a lot less in terms of defaults than you. But no high street bank will lend to us. In terms of LTV, We're after 60% mortgage so are putting in a substantial deposit.

Good luck!