Mortgages for those with poor credit history

mbaz

Hiya

Me and my hubbie dont have a great credit history between us but we really want to buy our first house. We have a 10% deposit and on paper earn enough for the amount me want.

No CCJs just 2-3 defaults. One will be gone in July I think as will be 6 years old. I've tried my bank I have a current account with and they wont give us a mortgage.

Does anyone know which is the best broker or lender to approach? I dont want to have too many searches on our file on top of everything else so would like to go to one where we are likely to be accepted.

Thanks in advance

BitterAndTwisted

What makes you think that in the current economic climate a 10% deposit will be sufficient to secure a mortgage?

Wickedkitten

You might be better off getting a copy of your credit report to see when your defaults will be definitely cleared and then trying again then. Also is your deposit fund actually 2500 or are you leaving off a 0

mbaz

BitterAndTwisted wrote: »

What makes you think that in the current economic climate a 10% deposit will be sufficient to secure a mortgage?

ha ha you really live up to your username!!!! :rotfl:

mbaz

Wickedkitten wrote: »

You might be better off getting a copy of your credit report to see when your defaults will be definitely cleared and then trying again then. Also is your deposit fund actually 2500 or are you leaving off a 0

Hiya thanks I've done that and its not as bad as I thought so hopefully once the default has gone next month we'll be ok!

Not updated my sig for a while!! We have 10%+ deposit for the houses we have seen.

Thanks for your help!

BitterAndTwisted

mbaz wrote: »

ha ha you really live up to your username!!!! :rotfl:

The reason for my question had nothing to do with my user-name or to do with throwing cold water on your plans and everything to do with understanding that currently lenders are requiring mortgage-borrowers to have at least a 20% deposit. Plus you will need several thousand for conveyancing and surveys and what not

mbaz

BitterAndTwisted wrote: »

The reason for my question had nothing to do with my user-name or to do with throwing cold water on your plans and everything to do with understanding that currently lenders are requiring mortgage-borrowers to have at least a 20% deposit. Plus you will need several thousand for conveyancing and surveys and what not

ok well to answer your original question when I contacted my bank they advised I would need a 10% deposit. I do also know about the other associated costs. Thanks for your help.

_Andy_

How much were the defaults for?
Really at 90% LTV with adverse you're going to struggle to find a lender.

<sebb>

There really are very few mortgages available for a 10% deposit. There are a few, but the interest rates are terrible. Your broker could have probably found you more, but compared to the ones you have been shown, the interest rates would have not been attractive.

You'll open up so many more deals if you can raise 15%, many more if you can raise 20% and some of the much better rates if you can raise 25%. The absolute best rates are reserved for those with a 40% deposit.

Times have moved on, 10% deposit is no longer considered to be a large deposit and the 100% + mortgage no longer exists.

mbaz

I'm not sure how much the default was for but it went on in June 2004 so I'm presuming it will come off in June and there's nothing else that I cans ee on our reports other than 1 account with a missed payment that is now settled. All the others show as settled or satisfactory that are still open which I am amazed about as I negotiated a payment plan for them so I thought they would have registered a default!! We might save up for a few more months or my FIL had offered to lend us some which would boost our deposit to 15-20% say.

My original question was are there any particular lenders or brokers that deal with people with adverse credit? (although our credit records should be pretty good from June anyway!)

MrandMrsWoo

Unfortunately mortgage lenders are been very very strict about who they had 10% LTV mortgages to. Our mortgage advisor said to us that we are the near perfect candidates for a 90%. We have perfect credit histories, good solid income, income multiple ask of around 3, steady house, full set of payslips available, etc etc all the things that would typically get you a mortgage.

We were provisionally accepted without question and have recently started the seeminghly painstaking process of getting the full offer. So far it has gone backwards and forwards up and down and only now are starting to see some light at the end of the tunnel.

I do wish you luck and hope that it comes through for you but at the minute lenders are been and can certainly afford to be very very choosy, some would say it's the right thing for them to do but there has to be a medium.

On another note congratulations on saving the 10% deposit. I think it can be very eaily overlooked just how difficult it is to raise 10% of the house price up front whilst renting. It is very easy for people to "save more" or make comments on "only 10%" when the truth is it has never been harder to achieve 10% of a houses value in real terms. Over the last few years many people have bought a house with nothing or very minimal deposits and just think a few years ago you would have been lauded for this achievement so just because the rules have changed it does not make your efforts any less valid.

Good Luck!