Mortgage Advice for difficult circumstances

PaulThor

I am finding it difficult to get a mortgage and need some good advice. I am a self employed plasterer and five years ago I got into some financial trouble and received a CCJ. Since then I have been able to stay on track paying off my debts and would like to buy a house instead of renting. Although every time I apply for a mortgage I keep getting rejected.

I have been looking around for mortgage companies that specialise in mortgages for people with specific needs. I have come across a mortgage company National Guarantee that I have not ever heard of. According to their site thery are apparently specialists who offer mortgages for people in difficult circumstances. I am unsure about the risks that are involved and also concerned with the interest rates and the fact this is not a high street company.

On their site they have case study videos from clients that have received good deals on their mortgage, but who's to say these aren't put-ups. But before I decide to call this company I would like to know if anybody can give me independent advice about National Guarantee (https://www.nationalguarantee.co.uk) or companies like this. What companies could I use and which ones should I avoid? How can I avoid paying over the odds on interest rates and more importantly will they be able to help or am I raising my hopes too much?

payless

looks like ( I could be wrong) they are a one lender brokerage , owned ( and therefore I assume introducing to) GMAC

This connection may restrict the terms they are able to source BUT may mean they have a bit of extra weight with the underwriters

Appears taht they charge fees ( no uncommon in this sector) although you may find others that don't and have access to wider panel

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How much is the CCJ, is it satisfied , and can you prove income?

... you may find a mainstream lender willing to overlook and take you one at normal (incentive) rates , or treat on a "2nd tier" rate ( ie high street lender, but a slightly higher rate) ..

petermb_2

I would advise that you go and find a reputable mortgage broker or independent financial adviser. i am sure they will be able to assist you.

Leon_W

I would avoid them Paul Thor

They introduce business to only one lender (as payless says, I think they were bought out by GMAC) and charge up to 10% of the loan as a fee !!! So therefore you're not really getting much choice and paying well over the odds for the priviledge.

There is nothing that they could do that any other non fee charging broker couldn't do, so you could save yourself a few quid by going down that route, and maybe get a better deal with a different company.

People have this perception that because they have had a few credit problems in the past that somehow their mortgage is going to be more "difficult". In all but the worst cases, generally they aren't. So how, quite frankly, these rip off merchants, get away with it is beyond me. 10% of the loan, I ask you.

payless

Leon - Whilst not disagreeing with your thoughts

To throw a degree of balance- that (up to) 10% fee is on loans

For mortgages they state
A fee of 1% of the loan may be payable on completion, subject to a minimum of £2,250.

Still alot, but I've seen others much higher

Leon_W

I stand corrected then payless. Still a hell of a lot though.

As an aside, in my younger brokering days I went for a job interview with them at their offices in Birmingham (not sure if they are still there) and you know when you get a certain feeling about how a company operates at the interview....... Let's just say the job was offered but politely declined.

Too many phrases being used like "Hungry" Dynamic" Go getters" etc etc

rachnbri

Look on t'internet for a genuine IFA. I have dreadful credit record caused partially by b*****d ex husband and partially by a stage I went through when I developed a total inability to deal with anything. Earlier this year I decided that I absolutely HAD to get out of renting (single mum, 2 kids, was being evicted from 3rd property in a row because landlord wanted to sell, 10 year old son had already lived in 6 different houses so felt really needed a level of stability and was unable to get council/housing association property for bring enough of a mug to work for a living!). My IFA found me a mortgage on an £80000 house with a very reasonable interest rate considering that I was 'adverse credit' and his fee was £350. I know that a lot of people do not advocate choosing a fee charging IFA but I certainly had a very good experience.
I'd be happy to pass on his details if you want to PM me.
Good luck.

silvercar

If you keep getting rejected when making mortgage applications then stop!

Every application will show up on your credit record and count against you. get hold of your credit record and find out why you keep getting rejected then go and see an independent mortgage advisor, armed with your credit record, who will know which lenders will look favourably on your circumstances.

PaulThor

Hi

Thanks for all of your advice, it has been greatly appricated. I will certainly use this information.

Taking on silvercars information about stop applying for mortgages because they show up on credit history.

I think I will also look into seeing an independent financial advisor.

Cheers

Conrad

PaulThor wrote:

I am finding it difficult to get a mortgage and need some good advice. I am a self employed plasterer and five years ago I got into some financial trouble and received a CCJ. Since then I have been able to stay on track paying off my debts and would like to buy a house instead of renting. Although every time I apply for a mortgage I keep getting rejected.

I have been looking around for mortgage companies that specialise in mortgages for people with specific needs. I have come across a mortgage company National Guarantee that I have not ever heard of. According to their site thery are apparently specialists who offer mortgages for people in difficult circumstances. I am unsure about the risks that are involved and also concerned with the interest rates and the fact this is not a high street company.

On their site they have case study videos from clients that have received good deals on their mortgage, but who's to say these aren't put-ups. But before I decide to call this company I would like to know if anybody can give me independent advice about National Guarantee (https://www.nationalguarantee.co.uk) or companies like this. What companies could I use and which ones should I avoid? How can I avoid paying over the odds on interest rates and more importantly will they be able to help or am I raising my hopes too much?

Someone I know was charged a 2% fee hidden deep in the papers. Also 5 years worth of insurance premiums added to the loan - and when they claimed it was invalid!

Not a company I would urge someone deal with.