mortgage with bad credit based on equity?

tinkertaylor05

Any genuine help appreciated.

GMS

tinkertaylor05 wrote: »

Long story short, nasty seperation with dd's father = my head firmly up my back side for 6 months! When I finally got myself together the result was a 6 month blip on my credit file, namely 2 defaults totalling £1400 this was in March 09

I am making repayments towards these defaults which currently stand at £850, I have 10 settled accounts and 8 ongoing accounts all ok 12 months plus, with the exception of the defaults.

Would there be any companies likely to give me a mortgage of £70,000 based on a property currently valued considerably more with a fair amount of equity? My bank is trying to encourage me to apply and I am just not convinced. To avoid confusion the property is my mothers which is why the sale price vs equity is such .... not due to flying pigs :rotfl:

Any genuine advice appreciated.

Best to speak to a broker asap. It may be possible depending upon valuation and your circumstances. You have ongoing accounts so these debts would need to be considered. Lenders there for slight credit blips but depends on Loan to Value. May be that you need to wait until defaults 2 years old

tinkertaylor05

Thank you,

GMS

tinkertaylor05 wrote: »

Thank you, the property has more than 5 x loan to value. My bank is aware of my credit file but are encouraging me to apply, with a feeling I would be given the mortgage on an appeal. Does this seem possible?

Wouldnt like to say without knowing who the lender is or your full circumstances but I would be wary of a bank 'adviser'

To say you would need to appeal straight away implies you do not fir their criteria. Appeals are rarely sucessful.

Other thing is if you apply to a bank you get their mortgages only. May be better options elsewhere. A 'Whole of Market' broker could be worth a visit