Good Lenders for Minor credit issues

herbiesjp

No - still around

mortgage-adviser-now

asajoseph wrote: »

We've had a look at them [Woolwich] (our IFA told us the same thing), but their rates aren't great.


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With a sizeable default on your record you are not in the fortunate position of being able to worry about rates. If you can get a deal with any mainstream Lender you have had a result.

Take your IFA's advice or, if you aren't paying attention to your IFA why use them?

asajoseph

Well, our IFA's advice was that Woolwich mortgage rates aren't great.

I guess I didn't realise that a default for £1k, even one over 5 1/2 years old, and settled almost immediately, was considered SUCH a big deal.

Obviously I know it's important, but I had thought that the intervening time, and her good credit record since then would have meant that some lenders could look past it on a joint application.

I'm beginning to get the impression that perhaps that isn't the case! I guess the best route to take would be to try to fund the purchase based upon my own income, and then worry about the implications of changing the mortgage & stamp duty later on - I guess it would be expensive, but probably cheaper in the long-run than taking out a sub-prime mortgage.

dw32

Hi asajoseph

My hubbie and I have had some problems in the past, All settled now they were only 3 years ago, we recently got a mortgage with the RBS no problem at all we are buying a house with a large cash deposit and we only needed a 43% mortgage. I hope this helps the mortgage advisor at our local branch was great he said if anything showed up he would fight our corner with the mortgage center but we passed the application with flying colours we got the AIP straight away and the Mortgage Offer 3 days later we now move in 4 weeks. Hope this helps. Kind Regards DW32

asajoseph

Thanks DW, that's great to know

asajoseph

Another thought (possibly warranting it's own thread).

If Halifax were to come up a little short on the mortgage offer, would my partner (excluded from the mortgage) be able to take out a loan to bridge the gap?

I've done a couple of fag-packet calculations, and I reckon that if I borrowed £265k on a mortgage @ 5%, and she borrowed £10k on a loan @ 11.5% on an 18 month repayment, we'd only end up about a grand worse off after the 18 month period was up, than if I'd been able to borrow £275k outright. Obviously we'd still have the complication of adding her to the mortgage / deeds at a later date, but this would at least solve our original problems, and be a whole lot cheaper than a bad-credit mortgage.

Would this be possible? She's had offers for loans from her bank in the past, particularly over the last year or so.