Mortgages for those with poor credit history

Fire_Fox

mbaz wrote: »

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!)

Borrowing money to boost your deposit no longer works, a lender looks at your NET deposit, i.e. the difference between your gross deposit and the money you owe. Are you registered to vote at your current address? Have you checked the records held by all three credit reference agencies? Go to a broker if you want to proceed with an adverse credit mortgage but be aware you will pay through the nose with interest rates, why not wait until June??

ItMightBeUsefulOneDay

mbaz wrote: »

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!)

Pretty much all of the lenders are very reluctant to lend at the moment. Throw in some "adverse credit" they get even more twitchy. If you have any debt then they'll start to panic and just say "no".

Go to a whole market broker (fee free) and let him (or her) see which banks are currently open to lending. It changes as each bank allocates a limited pool to the mortgage game. They prefer to cherry pick the best candidates (large deposit, public sector job for last 20+ years, impeccable credit rating) and once that allocation is used up the bank starts offering very low income multiples and uncompetitive interest rates to discourage further applicants.

dizziblonde

My husband's been trawling around the banks to find out how the land lies at the moment and what we need to look at raising to think about a mortage. One of the things he's being told as well as the above (interest rates really pants for 90%, pants for 85%, moderately pants for 80% etc) is that the banks have their packages on hold at the moment waiting till after the election's done and dusted - in the words of one "the deals we have at the moment are really rubbish, the new stuff's lined up to come out but it's all on hold till after the election."

Might be worth waiting on that kind of advice alone.

pinkshoes

For starters, what do you earn? How much are you wanting to borrow?

With 10% deposit and poor credit rating, you might find that a lender will give you a mortgage, but only for a low multiple of your salary.

DVardysShadow

mbaz wrote: »

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.

your sig : Debt March 2010 £9995
so do you have 10% deposit after your debt is paid off or is your debt the reason you have a deposit? Pay off the debt, then talk about your deposit - this will go down better these days.