Moving house with poor credit

CLAO0581

Just need some advice on this please although I think I already know the answer!

My husband and I are looking to buy a new property, we currently have a mortage with Santander for £148,000 on interest only.

The new property is would be bought at £180,000 but we would only have a 10% deposit following the sale of our house.

My credit score is 625(Poor) This is due to missed payments within the last 12 months although none for the past 8 months. My husbands will be worse (we have just ordered his) as all our cards etc are in his name. They have missed payments & high balances but will be cleared following the move.

Santander have just advised me that as we would only have 10% deposit they can only offer repayment terms and not interest only - Is this the case for most lenders??

Also because of the low deposit interest rate is a lot higher, is this also the case everywhere at the moment.

Lastly they have not done a credit check yet as I have not proceeded that far but is it very unlikely that they would accept us with that low a score/history. Would the fact that we have been with them 6 years and never missed a payment go in our favour??

Sorry lot of questions but I am really concerned.

Any advice greatly appreciated.:)

Conrad

I'm afraid you will not obtain a mortgage anywhere, and definitely not with Abbey unless somehow they dont pick up your late payments.

The Brits are going through a huge reality morphing right now, and most people still don't appreciate just how difficult getting a mortgage is.

Even with 25% deposit you would probably not get a mortgage as there are no sub prime lenders now lending. Even cheshire with thier 14% rates have no funds left to lend.

The Government are not aware of the full impact of the lending drought yet, hence why they keep banging on about increasing lending to business without realising millions of people are'nt able to get an ordinary mortgage now.

Protest to your MP.

CLAO0581

Thank you, I think you have confirmed what I already knew really. My husband tends to live in a bubble and has been so sure we would get any mortgage we like (this has always been the case pre-credit crunch). I have tried to explain how bad things are at the moment.
For the past 12 months we've probably only had a total of 3 missed payments and never on a loan or mortgage, but still I think this would be an issue.
He has approached a friend who is a financial advisor to see what he can do, but I suppose they are not miracle workers and maybe not a good idea to be applying to other lenders due to the impact the credit searches would have on our records??
Thanks for the speedy response too!

Conrad

Lenders simply cannot lend where an applicant has demonstrated a recent inability to meet thier outgoings. The FSA have very strict rules on a lender being able to demonstrate they have leant responsibly.

Furthermore lenders insurers will also not allow such lending.

If they were to lend to you and you got into arrears down the line, it is highly likely a lwayer would argue in your defence that the lender had leant irresponsibly, afterall you had shown prior to the mortgage application that you were not paying things on time.

Not making any judgment on you here, just relaying to you how it all works.