Mortgage Advice

Marley48

Hi,


I’m not sure if anyone can help or not but I’m interesting in getting a mortgage. I have 3 defaults and my credit score is pretty bad, however I have 20% deposit to put down. All of my debts are now clear so I have no money coming out, and I have kept up with the repayments for a year now. I only need 2.5 times my wage as I earn £15000 and need to borrow £40000. My parents are willing to be guarantors as well.


I know the high street banks won’t touch with a barge pole, but what are my chances of getting one elsewhere? I am aware I will have to pay a higher rate of interest, however this is still cheaper than renting!


I look forward to hearing from you.


Many Thanks

GMS

When were the defaults put in place?
What were the amounts?
Are they now showing as satisfied?

Marley48

Sorry there were 4 Defaults:

One on the 01/05/08 for £60
23/01/09 for £100
15/05/07 for £555
11/06/10 for £64

all showing as satisfied.

GMS

You would be best speaking to a 'Whole of Market' broker.

You have a few issues. Recent default, relatively low income, and I assume a property valuation of around £48,000?

Defaults are all satisfied though, and pretty small.

I would not like to say either way as I do not know your full circumstances.

A chat with a broker would be your best bet.

JimmyTheWig

How much equity do your parents have in their house?
£40k isn't that much. Could they increase their mortgage by £40k and lend you the money? Then you'd be able to buy the property you are after as a cash buyer.

Marley48

Thank you GMS, the property value is around £50,000 so I have £10,000 ready to go for the deposit.

I will be having a chat with a broker on Monday, I just wanted to test the water a little bit first.

Thanks again!

Jimmy, I don't think my parents have that much equity to be honest and I wouldn't really want to ask them to do that for me.

Funkygibbon

Keep us posted! I'd be interested to see how you get on. I'm in the same position as you but with bigger default values!

Good Luck!

Marley48

I think I need a lot of luck so thank you!

I will do, I'll let you know how it goes on Monday with the broker!

Funkygibbon

How did you get on?

Marley48

Sorry to not keep you posted - It was a no Back to the drawing board. Going to try and get my defaults removed and leave it a few months before applying again.

neenmarie

Hi we went to a whole market broker as we have a bad credit history which will be better by next year. They are good, we were suggested to Kensington Mortgages it was for a 2 year fixed borrowing £100,000 at 4.79% over a 25 year period. We decided not to go ahead as we would pay back over £170,000 in total and we are on a really good rate at the moment with our tracker mortgage.
You will get someone to lend you the money but be careful because some charge commision as high as 2%. Martin suggests some brokers to use on this site who are free! Good Luck