what is the best adverse credit mortgage?

melt71

Hi,

We've been offered an 'adverse credit' mortgage of 6.39% fixed for 2 years and 6.99 variable after that. We're tied in for 2 years, and there may also be some fees due if we swap in the 3rd year, that hasn't been made 100% clear yet.

The mortgage will be for £90000 on a house worth £160K as part of my divorce settlement, so I need to get this sorted quickly. But this mortgage offer will mean payments of over £600 per month for at least 2 years.

My question is; is this the best we can hope for? I have had a previous voluntary repossession which is all sorted now as we settled over 18 months ago. Other than that there is no other concerns on our credit records. I'm buying the house with my new partner and I've lived in the house for 8 years.

If anybody has any experience of this I would be very grateful as we don't want to commit to this mortgage if it's not the best deal on the table.

Thanks,

Mel

herbiesjp

It really does depend on your circumstances, and what you are looking for. If I glance quickly at the rates available, there are cheaper rates, but it would depend on whether you were eligible for them, or whether you like the terms and conditions attached. There are some adverse lenders that are offering deals without the extended tie-ins, but again eligibility for the scheme would need to be checked out.

luckyfool

What is the best adverse credit mortgage????

How long is a piece of string?

If that is a deal with no extended tie ins then it sounds reasonable, is it from Chelsea? I would certainly try to make sure you are not tied in beyond the fixed rate as at that point you should be able to go back mainstream. Another lender to look at may be Birmingham Midshires who will offer reasonably competitive rates without an extended tie in.

Who do you bank with? Have you spoken to them?

High street lenders are unlikely to be willing to do anything for you for a couple of years yet, it is still quite close to the end of your IVA. The only ones who may at a push look it would be Abbey, especially if you have some kind of existing customer relationship with them.