Adverse Credit Mortgage

Conrad

A few of the smaller building societies can consider defaults on a case by case basis. I had a policeman with mortgage arrears accepted.

Be aware the price reduction you outline is vast and may ring alarm bells with lender (for example they might suspect a cashback is going to go to the seller from you or something)

declaration

Conrad, there is no money moving around at all. I had suggested to him (on the basis of a previous internet search) that I may be able to get a 50% LTV mortgage. I think his line of thinking was that the asking price would be 119,000, but in reality I would pay him £60,000 as it's the only way I'd get a mortgage. I was refused by my own bank last year.

declaration

Any further advice would be very welcome

Conrad

I think a decent broker might be able to help. You must make sure they truly do use every lender - but it is'nt easy to find out as they will all use vague slightly misleading terms such as referring to thier indepdance, but that does'nt necessarily mean they've bothered to get to know every lender over the years.

Charterhouse

If he's willing to sell it to you for 60k, it seems very fishy indeed that it's valued at double that. I would be very surprised if a mortgage lender's own valuer is willing to put it at that price. You will have a very hard time getting it valued above 60k anywhere if that is what you are paying.

declaration

Hi Charterhouse, appreciate it sounds fishy, but it is all above board. He's an old friend that is trying to help me out.

It has been valued at 119,000, and as I said earlier, I had hoped to be able to get a 50% LTV mortgage, so he was willing to sell at 60,000 on that basis.

Yorkie1

I may well be particularly dense this morning (entirely a possibility) but do the figures add up, irrespective of defaults etc?

Is the LTV calculated on the purchase price or the valuation price, if different?

Because if it's the former, surely if you're buying it at £60K then you will only get a mortgage for £30K and have to find the rest as a deposit. If you're looking at getting a £60K mortgage then the purchase price would need to be £120K thus a £60K deposit? You'd have to state where the remaining funds were coming from, or at least I've had to do so both to my solicitor and the lender on the application.

VIGILANT22

Yorkie1 wrote: »

I may well be particularly dense this morning (entirely a possibility) but do the figures add up, irrespective of defaults etc?

Is the LTV calculated on the purchase price or the valuation price, if different?

Because if it's the former, surely if you're buying it at £60K then you will only get a mortgage for £30K and have to find the rest as a deposit. If you're looking at getting a £60K mortgage then the purchase price would need to be £120K thus a £60K deposit? You'd have to state where the remaining funds were coming from, or at least I've had to do so both to my solicitor and the lender on the application.

Quote: ]I may well be particularly dense.....:T...Don't worry you're fine but the the other one is not....

Oh the weird and wonderful ideas people come up with....

Matt1982

How long have you lived in this flat?

Might be able to pay against the reduced PP if being living there long enough. This may be able to be done through 'sitting tenant criteria'

declaration

Thanks Matt, I have lived here over a year now. A mortgage broker I spoke with looked at a mortgage that took into account the discount I was getting at the time, but I was declined a mortgage.

The valuation is 119,000, I have been offered it at 60,000. At this price, the mortgage would be less than I'm paying in rent, even at 7% interest.

Vigilant, I appreciate it might be a 'weird and wonderful idea', but I'm sure you would agree that getting a property at this level of discount would be an opportunity too good to miss. Wouldn't you look at all the angles?