Not quite 10% deposit

jacknavy

First time poster.
Currently saving for our first mortgage and have accrued approx an 8% deposit for the property that we wish to buy. We completed an IVA nearly 2 years ago which has now disappeared from our credit file and we now have a reasonable score.
Are there any lenders out there apart from Lloyds TSB with their lend-a-hand first time deal that are willing to lend more than 90% LTV. Also can anyone advise whether our history will have any effect on lenders decisions. Finally are you still able to add the extra costs onto a mortgage i.e. legal fees, survey fees etc.
Many thanks

_Andy_

With the adverse and small deposit I don't think you'll find anyone who will lend.
Legal fees+survey fees can not be added.

badmoon

Regarding an IVA - I've been there - way back in 2002. Did a full and final settlement and been off my record for a couple of years.

Things I've done to restore my record were to obtain a credit card (just the one) and I do use but make regular payments on it and ensure it doesn't ever become something i can't control. Also got a mobile phone on contract which I've never missed a payment on. Also had the same bank account with no issues now for nearly 8 years.

The only thing that was lingering was a default which only showed up on my equifax, and that's been off for a while now too. Have you any defaults on your file as that can have an impact?

I've had a mortgage offer and my house is not far off being finished and I'm really excited. So I'm proof there is life after IVA and hopefully the same for you but it can take some time.

With regard to the 10% deposit or near enough - your best bet would be to speak to a whole of market mortgage broker perhaps with the added need if you do have defaults on file still who has a knowledge of the sub prime market too. As far as I can tell from what I've read on these very forums, there aren't many deals out there for a less than 10% deposit. How long would it be before you could build up to a 10% deposit and also do you have enough as it stands now if you could find a mortgage that would work, to also pay for legal fees/surveys etc.,?

I know it's hard if you've fallen in love with a house and there may well be deals out there especially if you talk to a broker.

Good luck in sorting it all out whether you move now or in a few months.

Gambit

Hi jacknavy,

I'm no expert and know that there are some mortgage advisors that post on this site so will have a better idea about these things. But I'm a first time buyer in the process of buying my first property as we speak and when I looked around for the best rate I didnt see any lenders willing to lend more than 90%. In regards to the legal fees these have to be paid to the solicitors so cant be added to the mortgage. However the arrangement fee (if applicable) can be added to the loan and some lenders offer a free valuation as an incentive such as the one we went for with Abbey/Santander

Hope this helps but as I say I'm sure those with more knowledge will also respond

jacknavy

Many thanks for the quick reply.
We have managed to keep everything clear since the completion of the IVA and have a contract mobile and I also used one of the pre-paid credit cards credit repair schemes. Other than that we have no other credit.
Affordability is not an issue (40k income) and the house purchase is from a family member but they are looking for an immediate sale. Mother in law is willing to act as guarantor - although she is retired but owns her house outright - is this a viable option i.e. putting her house as security.

happybroker

8% not quite enough if you have an absolutely impeccable record. You will be asked if you have ever entered into an IVA when you apply for a mortgage given the information you have posted you will need a minimum of 40% and then it won't exactly be a walk in the park I'm afraid.

Sorry I can't be more positive.

badmoon

happybroker wrote: »

8% not quite enough if you have an absolutely impeccable record. You will be asked if you have ever entered into an IVA when you apply for a mortgage given the information you have posted you will need a minimum of 40% and then it won't exactly be a walk in the park I'm afraid.

Sorry I can't be more positive.

Really? I definitely didn't hide the fact that I'd had an IVA but wasn't even asked the question as to whether I'd entered into one at any stage during my mortgage applications. I made it perfectly to the broker what my previous credit issues had been.

My understanding was that once it was over the 6 years and no longer on your credit file, there was no reason to mention it again.

Only going on my own experience of course though.

Brallaqueen

I'm looking for 100% mortgages on my brother's behalf and I found this
http://www.money.co.uk/mortgages/100-mortgages.htm

Not sure if it will be of any use?

Wutang_2

Brallaqueen wrote: »

I'm looking for 100% mortgages on my brother's behalf and I found this
http://www.money.co.uk/mortgages/100-mortgages.htm

Not sure if it will be of any use?

Amazing!!

Although, if you are researching on behalf of your brother - have you bothered to look at the details of each of these mortgages advertised?

Or do you want someone to do it for you?

"If you're going to do a job - do it properly"...not sure who originally said that, but its true.

Brallaqueen

My brother will be going to a rcommended broker, same as I did.