Mortgage with bad credit

SeXyDeViL

Hiya guys

Hope you are all well

Im a first timer on this ere site & was hoping for a little or much advice on the dreaded subject of bad credit.

Im a 24 year old male who made a few blunders as a youngster & ended up unable to receive credit on ANYTHING! currently awaiting a credit report to clarify this but im oblivious on where to start building back up my score & get onto the property ladder by the earliest means possible.

Any advice would be greatly appreciated & im sure I have fellow compadre's in the same situation who would be equally appreciative

Many thanks in advance :beer:

MortgageMamma

Hi There,

There;s not so much I can say to you now apart from if you have credit pay it all on time. When you have got your credit report update the thread - you will obviously need a deposit if your credits very bad but a mortgage may not be an impossibility for you

MM

jamesd

People can get mortgages with several CCJs provided they aren't within the last few months or for too much money. "Unlimited" negative credit mortgages are also available but at a hefty interest rate premium and with significant deposit requirements. One of many providers of such mortgages is BM Solutions and if you say which of their ranges you qualify for someone might be able to give you a better idea of your chances.

Note that in this area every little detail can make a significant difference to what mortgages you qualify for, so it's one where a good broker can be very helpful.

SeXyDeViL

Thanks for that boost of encouragement James, Im looking into a shared ownerhip scheme (Part rent/Part buy)
I understand even these can be turned down with bad credit

Is this a good option?

MortgageMamma

SeXyDeViL wrote:

Thanks for that boost of encouragement James, Im looking into a shared ownerhip scheme (Part rent/Part buy)
I understand even these can be turned down with bad credit

Is this a good option?

You never know unless you try!

jamesd

SeXyDeViL, time to chat with a mortgage broker. That's where you'll find out the answers specific to your situation.

SeXyDeViL

:j Thanks guys :beer:

James & Mortgage mama I took your advice & approached a broker

I have been offered a mortgage following breakdown -

£200k - £10k deposit = £190k mortgage
£190k = £972 monthly payments

Interest only mortgage with 2 year fixed rate

6.14%

Is this any good?

MortgageMamma

Who is the lender? If you are happy with the deal then I guess thats what matters, make sure there are no extended tie ins though

SeXyDeViL

I spoke to the broker who didnt disclose the lenders name even when I asked. Im not too happy with it just happy that I can get a mortgage

£972 is alot & i'll have to budget

Is that interest rate reasonable? 6.14%
Do you know what the industry average is?

I saw my credit report & I have a ccj

kenshaz

Have you asked about fees and commission ,you usually pay a higher fee and higher commission to the broker ,when your credit record is not perfect ,you need to know.
also quote the terms to another broker ,see it it can be beaten,this can be done without lenders name ,but you need to know about how much each broker is going to charge and what commission the lender is giving ,that is your legal right.
have a go on the wizard on this site,will not give you a definitive answer because of your credit report,but it will be an indicator ,use the free phone number and speak to them https://www.charcolonline.co.uk

AndrewSmith

kenshaz wrote:

Have you asked about fees and commission ,you usually pay a higher fee and higher commission to the broker ,when your credit record is not perfect ,you need to know.
also quote the terms to another broker ,see it it can be beaten,this can be done without lenders name ,but you need to know about how much each broker is going to charge and what commission the lender is giving ,that is your legal right.

The commission rates are not negotiable and are paid by the lender not the borrower. The gross commission paid by the lender is shown in section 13 of your personalised quote. Remember that this is the gross figure, not all of this is paid to the broker.

The broker has no control over the amount of commission paid by the lender.

I do agree however that one should not pay a fee, or extra fee just because your case is outside the 'prime' model.

Andy