Are there any sub prime lenders still out there???

rob7475

Hi,

We have just sold our house for £108,000 and currently owe about 88,500 on the mortgage (with accord mortgages).

We have had an offer accepted on another house for £103,000 (needs a bit of modernising but others on the street are on the marked for over £140,000.

My credit history is poor - i've get a CCJ for about £2000 from June 2008, several defaults on loans on credit cards (I have made arrangements with all creditors to pay back the money at a lower monthly payment) I currently have about £30,000 in unsecured debt. I was young and stupid and i'm now paying the price! My partner's credit history is clean though.

I have spoken to accord who instantly refused to port my mortgage because of my CCJ. After explaining that the area we live in is going downhill and we want to move before we go into negative equity, they agreed to do an application but can't promise anything.

Does anyone know of any other lenders who may accept us? Our joint income is £32000 and I have a part time job that pays £3500 a year on top. We need to borrow about £88,500 against a house purchase of £103,000.

Thanks in advance

ILW

You have unsecured debt of close to your joint yearly income, a payment plan on credit cards, and a CCJ within the last couple of years. I would consider your chances of getting a 90% mortgage at the moment at slightly less than zero. I think you either need to stay where you are, or think about renting.
Sorry.

_Andy_

As per ILW - not going to happen at that LTV.

Conrad

80% max, for a rate of crica 7%, but a 2.5 - 3.5% fee which may have to be paid rather than added.

DervProf

I thought I heard that "sub-prime" mortgage lending was an American thing, and that there weren`t any sub-prime mortgages in the UK ?

Anyway, without wishing to sound harsh, with your past credit history, I wouldn`t want to lend you any of my money. As a taxpayer who has contributed to recent bank bailouts, I don`t really want those banks (or any others) to resume the lending practices of the past decade which got them into trouble.

Mortgages are big, long term financial commitments for most people, yet many folk seem to think they have a "right" to take on £10K`s worth of debt, without understanding how mortgages work, and the risks involved.

I`ll give you some constructive advice - stay where you are, keep your jobs (if you can), and pay off your unsecured debts (or a large part of them). Don`t make the same mistakes you made in the past. In a few years time, if you are in a more secure financial situation, consider moving.

I live in very modest property, in an area that can`t be described as exactly "wonderful". However, I have a very good credit rating, savings in the bank and although I say so myself, a pretty good attitude when it comes to personal finance. Believe me, having no mortgage before the age of 45, but living in a modest home, does aid restful sleep.

brit1234

DervProf wrote: »

I thought I heard that "sub-prime" mortgage lending was an American thing, and that there weren`t any sub-prime mortgages in the UK ?

There were loads before the credit crunch, we have a big problem with it in the UK. That and all the false incomes on declared on self cert mortgages. All these low interest rates are delaying this sector from implodding, however there interest rates are high despite this.

ManicMum

Hi

I would say just concentrate on getting rid of your debts. You say this new house needs modernising so you are going to have to spend more money on that. That money could be used to get your debts down. Then there are all the costs associated with moving which can run to thousands. Sit tight, that's my advice.

benjo

I thought Accord were one of the more 'sympathetic' lenders, perhaps Im wrong on that.

You say you were 'young and stupid' yet your CCJ has only just celebrated its first birthday, you say you are paying the price - well you certainly will pay a price if you manage to get a mortgage for 90% from a sub-prime lender as Conrad so rightly points out.

Rent or stay where you are, pay our debts off, save for a bigger deposit/overpay your current mortgage so that when your debts drop off the radar in around another 5 years time you will be in a great position to buy and borrow at a much more favourable rate.

Goodluck.

Trollfever

From the Office of Fair Trading 30th July 2009.

The draft guidance identifies types of policies and procedures that the OFT would expect lenders to put into practice. These include:

• Ensuring all key information provided to prospective borrowers is clear and easily understandable and properly explained to them.
• Assessing a prospective borrower's ability, in the context of their overall financial circumstances, to afford to meet repayments in a sustainable manner.
• Dealing with borrowers in default or arrears in a fair and proportionate manner, seeking to repossess a borrower's property only as a last resort.

http://www.oft.gov.uk/news/press/2009/93-09

DervProf

brit1234 wrote: »

There were loads before the credit crunch, we have a big problem with it in the UK. That and all the false incomes on declared on self cert mortgages. All these low interest rates are delaying this sector from implodding, however there interest rates are high despite this.

Indeed, I am well aware of the many "dodgy" mortgages issued, which the government/media seemed to sweep under the carpet. This country has been ruined by "creative" finances and mass ignorance/greed in the majority of the population. I thought we might actually learn something from the credit crunch, but it seems to me that there is a huge outcry in the media for a return to the "old ways". Any sensible person, with a grasp of basic mathematics and personal finance, will realise that average house prices should have fallen at least 30% from August 2007 levels. We`ve arguably had around a 15-20% drop, and now there seems to be a general feeling that prices have started to rise, and will continue to do so. The "excuse" for the premature turnaround in falling prices, we are often told, is that there is a shortgage of property in the UK. If this is true, then this fact should be the main story on BBC Breakfast News, not joyous celebration each time Haliwide announce another month of price rises. Gordon Brown & Co. seem to be hell bent on resuming the "boom", and give mere lip service to actually solving the shortage problem. And what do the British public seem to do ? They fall for it every time. The government have their voters exactly where they want them, fighting each other to outbid each other on a pile of bricks that promises many riches in the future. And when they finanlly get that humungous mortgage, they simply have to work their socks off for many years to pay it off. While they`re occupied doing that, they`re to busy to realise that they really are being stitched up.

Bloo_Loo

I didnt see the bit where you have accounted for the agents fees for your sale, the solicitors fees for the purchase and sale, the removal costs and renovations.

are you sure this is a good move?