Help - am Stuck, need mortgage but bad credit

angelface

Hi i am new here, i hope I am in the right place!

I was made bankrupt over 3 years ago (I have been clear of bankruptcy and in fact any debt at all since last April 05).

My partner and I are stuck in a pokey 1 bed flat in London, paying £750 a month for the pleasure. I earn over £30k and my boyfriend over £20K and we really want to buy a house in Scotland. Due to the amount we pay monthly we will need to look for 100% mortgage.

I'm a bit apprehensive though of being laughed out of any bank. Ex Bankrupt, no deposit, looking for £110K. Do I go to a bank, or someone who looks everywhere (forget what they are called!) or should I find one of those places that specialise in people with stinky credit.

I'm a first time buyer, finding the whole thing overwhelming. Do you think I have a chance of a mortgage?

MortgageMamma

You won't get a 100% mortgage with a past history of bancruptcy on your credit file. You really need to raise a deposit if possible. If you took a personal loan to raise a deposit the lender will reduce the amount you can lend, usually by the monthly payments x 12. You will be looking at between a 1-% and 15% deposit also. It is not impossible for you to get a mortgage, but you need professional independent advice to find the best way forward.

HTH

MM

angelface

And this takes into account my boyfriends good credit history ( I was hoping his good would cancel out my bad )

Are there recommendations anywhere as to who would be good for independent advice (and whether they charge fees etc)

MortgageMamma

You boyfriend could always buy a property in his sole name but that would restrict the amount he was able to borrow, also if he is financially associated with you and you have joint accounts etc that could well impact his credit score to.

Your best options is to speak to a whole of market mortgage advisor who can work out the best way for you to go around this, and also give you an indication of the amount you may be able to borrow

angelface

who do I go to that is trustworthy, where can i get this info from?

MortgageMamma

You could ask around friends and family for a recommendation but the most important thing is that the broker si whole of market, which means they have access to the whole UK marketplace and this opens up your options as regards to potential product. Theoretically (some would dispute) all mortgage brokers should be trustworthy post regulation by the financial services authoritym as they are screened to a high standard by the companies they work for, any networks they are members of and if directly authorisied the FSA> We have to meet "fitness and propriety" standards which is a way of assessing us that we are fit to do the job on a moral level.

Like I said earlier, there are ways around your situation, but a 100% mortgage is not the way. For a start I would recommend getting a copy of both your own and your boyfriends credit reports from http://www.experian.co.uk and http://www.equifax.co.uk just to have a nosey whats on there. a potential broker would want sight of these before advising you, as this will ensure he/she recommends the right product.

HTH

MM

angelface

Right have spoken to a couple of people at work, one says she used a guy and he charged her a large fee but looked at all mortgages. Then i looked on the internet and L&C said they looked at everything but charged no fee.

its like a minefield, any advice.

MortgageMamma

small and friendly is usually best!

angelface

Right, where can I find this information? is there a list? An association? a website?

MortgageMamma

you could try putting your postcode into the fsa register and see what comes up, but this cannot indicate quality advice. http://www.fsa.gov.uk

MortgageMamma

Sorry FSA stands for financial services authority. All individuals and firms authorised to transact mortgage business are registered on it!