Mortgage with bad credit

AndrewSmith

SeXyDeViL wrote:

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

You have every right to know who the lender is, do not proceed any further until you have received a personalised Key Features Illustration clearly showing the lender's name etc, and an Initial Disclosure Document from the broker showing their fees, charges and polarisation / market access details.

kenshaz

You are still entitled to know what commission is being paid by the lender to the broker,and as you say it is in the personalized quote,a legal requirement.Because the broker might be getting higher commission because it is out of the prime model.Use mainstream brokers .

MortgageMamma

SeXyDeViL wrote:

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

Cheeky broker - obviously none to confident in his own sales abilities if he won't even disclose who the lender is! Client relationships should be built on mutual trust from day one, not mutual suspicion! Give him the opportunity to send you the full key facts document, unedited to include the lenders name, if he doesn't, find someone else.

MM

MortgageMamma

Ps - plenty of prime lenders will accept one ccj and a couple of late payments, get a second opinion just to make sure thats the best you can get - obviously we don't know your complete credit history as this is an internet forum, but hopefully you should be able to get better than that

Angela_D_3

Your going to pay £972 a month for 25 years for half a house are you mad ????? Please, please tell me that is a repayment mortgage ?

MortgageMamma

SeXyDeViL wrote:

: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?

Angela D, see above.

AndrewSmith

kenshaz wrote:

You are still entitled to know what commission is being paid by the lender to the broker,and as you say it is in the personalized quote,a legal requirement.Because the broker might be getting higher commission because it is out of the prime model.Use mainstream brokers .

I agree with this.

We have all seen the advertisements on daytime TV for loan and mortgage companies offering to 'repair your credit rating' and obtain you a mortgage when no-one else can.

The fact it that these companies tend to be tied to a very limited panel of 'specialist' lenders and have no access to mainstream products at all. On top of which they will nearly always be charging a minimum fee of at least £2000 for placing the case.

Check the broker's market access. Just because he may be 'whole market' doesn't mean that he can go to any lender. Charcoalonline for example have access to only 36 lenders and charge a £199 completion fee.

Also you should not be paying fees of anything in excess of 0.5% of the loan to the broker IF AT ALL!!

ctabuk

Far too dear, shop around.

This thing about asking the Broker who the Lender is, is a good question, but actually until the Mortgage Offer is out, no end hide the name, well you could do hours of research and the Lender turns out to be on the High Street. Off goes client [:D]

ctabuk

AndrewSmith wrote:

I agree with this.

We have all seen the advertisements on daytime TV for loan and mortgage companies offering to 'repair your credit rating' and obtain you a mortgage when no-one else can.

The fact it that these companies tend to be tied to a very limited panel of 'specialist' lenders and have no access to mainstream products at all. On top of which they will nearly always be charging a minimum fee of at least £2000 for placing the case.

Check the broker's market access. Just because he may be 'whole market' doesn't mean that he can go to any lender.

Also you should not be paying fees of anything in excess of 0.5% of the loan to the broker IF AT ALL!!

Agreed, Some of us (Not many) link to Citizens Advice;)

jamesd

SeXyDeViL, I'm not very impressed by that. Who's the broker? You might usefully try one of the ones who post here if you don't know of a good local one. From the sound of it you have a chance of getting a mainstream mortgage from some lenders, at a significantly better rate.

If you have to budget for an interest only mortgage with two year fix you shouldn't take the mortgage. The need to budget pretty much proves that you'd have a tough time dealing with interest rate rises. You also need to check the rate after the fixed period ends and make sure you can pay that rate until you can switch mortgage. It's normally easy to overpay if you can but much tougher if you can't afford to make the required payments. Getting a lower interest rate would help, so would getting a 30 year mortgage instead of 25 years. Don't worry much about the 30 year term, you can normally overpay to reduce it, the important bit is making sure that the payments you're required to make are affordable.

If the current broker doesn't provide you with an initial disclosure document and key facts illustration, run. It would pretty much prove that they are trying to exploit you, not getting you a good deal and not following the rules they are supposed to be following.