Specialist Help Request - Is it still so bad...?

gumman

Hi, thanks in advance for any replies... this place is brilliant.

Back in 2007 we took some really bad advice and ended up with a bank defaulting us due to the bank charges fiasco (long story short: £90 in charges, stupidly I dug my heels in due to the charges advice at the time and ended up with a £600 default).

Fast forward to now... we have seen a house we'd really like to buy but we can't get a mortgage because of this adverse credit.

We earn very good money and aside from the blip back in 2007, both credit agencies report a very good history showing all green monthly activity.

We do not have significant o/s credit aside from a car loan but the adviser has told us because of the income to mortgage value this would not be a problem....

Yet, we can't seem to get anything better than a 65% mortgage (us having to have a 35% deposit) we are also FTB.

Can anyone help with any advice... I don't even mind paying over the odds for a couple of years whilst we better our position naturally through time as it were.

originalmiscellany

You mention an adviser - is he a "all of market" one? If so, I'm sure if you have stated it, you should get some reasonable deals available to you...

Do you have much in ways of saving? If you are on "very good money" then I assume you've been able to save what - 2k a month for the past 2 years = around £50k for a deposit?
The banks are wanting to see that you will return their money and not default - as you have history - even though it's a small one, it's still on the record as one, and many of the banks can afford to be really picky with who they lend money to.

GMS

There are possibilities of higher LTV loans than that depending upon your circumstances, assuming the 2007 default is the only adverse.

You are not the only person to have defaulted due to bad advice. Unfortunately this site encouraged people and as with yourself have put people into a 6 year period of difficulty obtainign finance which will cost much more than the charges ever were.

That said it is done now so you need to have a look at what may be available.

Speak to a 'Whole of Market' broker to see options

gumman

Hi Thanks for the replies.

The 'good' money as I mentioned is more so in recent times, I don't know what everyone constitues as good so I will post here the total situation:

Earnings £55k, deposit we can get quite quickly is £10k, house is on the market for £140k

Now, we are not absolutely desperate to move but this house is in an ideal place and is a lot for the money, I can happily wait a year to build a bigger deposit and put us in a better position, but it seems a waste of about £12,000 in rent when it could be going to the mortgage. Ironically the mortgage would be cheaper than the rent on our current place.

The adviser is 'whole of market', well that is the phrase she used. She had some online tools she was using to define criteria but it appears this single default is the cause of all our problems.

Thanks again

herbiesjp

With only the one default, and no other adverse in the last 3 years, you will have options available at higher LTVs if you wanted.

You would need to see if you met all other lending criteria associated with these lenders, but you should be able to investigate other deals.

dimbo61

You dont have a 10% deposit and I guess the money to pay the stamp duty £1,400 or the legals,seaches, surveys or mortgage fees.
Keep savings unless someone in the family can give you a lump sum gift!

herbiesjp

She had some online tools she was using to define criteria but it appears this single default is the cause of all our problems.

The deposit is the problem.

I'd read the the first part and missed your second part.

Deposit you would need as a minimum would be 15%-20% - so as dimbo says get saving or see if you have generous family who can help.

gumman

I can take some honest advice

Thanks for your help, saving it will be for a while longer I guess.

Have a great evening.