Adverse credit mortgages......?

lukemed1

Hi everyone,

does anyone here have a sub-prime mortgage? what sort of rates do you pay? who are the 'best' lenders and who are the worst?

any advice appreciated!

Luke:beer:

MortgageMamma

Hi Luke

what makes you think you need a sub prime mortgage? you may not - please post some more details

lukemed1

MortgageMamma wrote:

Hi Luke

what makes you think you need a sub prime mortgage? you may not - please post some more details

Hi there,

am on a DMP and have 3 defaults

Best wishes

Luke

MortgageMamma

Could you give more details? is it a purchase or remortgage you are looking for? The sub prime market is very complex so its not as simple as saying "xxxx lender is the best" - the products and lenders all work very differently - the best thing you could do is speak to a whole of market mortgage broker and let them advise you properly

Madjock

I'm with Mortgages PLC, on 6.9 fixed for 2 yrs. I paid arr fee £599 and no VAL fee. I got 95% mortgage with vendor deposit and no HLC, but I did have to pay £150 title insurance for the vendor deposit.
Rates I'm seeing lately for average (medium) sub prime are around 6.5-6.7, slightly better than the rate I'm on. It'll depend on how adverse you are, LTV, employment status etc.
The sub prime lenders are much of a muchness to be honest, the bad rep a lot of them have has to be placed in context - they lend to higher risk customers. Since I completed in June, I've had absolutely no issue with them over anything, but I've not had any problems paying the mortgage. The adverse lenders can be more problematic to get a mortgage offer out of, but if you jump through their hoops instead of questioning what they want all the better. I got my offer within 2 weeks of applying, and that included getting ID sorted for me, and getting bankruptcy discharge certs for both of us. My advice would be USE A GOOD BROKER WHO DEALS IN THE SUB-PRIME MARKET, AND LISTEN TO WHAT THEY ADVISE YOU.

Good luck.

herbiesjp

Hi Luke

There is really no best and worst - as which lender will be best for each person depends on their own individual circumstances.

So as Madjock states he/she is with Mortgages Plc, they may or may not be the best for you, or yu may or may not be eligible for the schemes they have

Get an up to date copy of your credit file and have a word with a fee free whole of market adviser, and let them see what they can find

HTH

SE9Gull

Lukemed1,

I also fell into the trap of assuming I would only be eligible for a sub-prime mortgage because of previous defaults and a poor credit rating, but I must echo the previous posters who are telling you to go to a whole-of-market mortgage broker, as we've just ended up with a 100% deal at prime rates with a mainstream lender. Defaults and DMPs are a major millstone around your neck - I was asked to provide a full explanation of why these had happened, but some lenders seem to be more interested in future potential earnings, level of qualifications, etc - stuff I never thought would be relevant to a mortgage application.

Best of luck in getting yourself a mortgage.

toonfish

Madjock wrote:

I'm with Mortgages PLC, on 6.9 fixed for 2 yrs. I paid arr fee £599 and no VAL fee. I got 95% mortgage with vendor deposit and no HLC, but I did have to pay £150 title insurance for the vendor deposit.
Rates I'm seeing lately for average (medium) sub prime are around 6.5-6.7, slightly better than the rate I'm on. It'll depend on how adverse you are, LTV, employment status etc.
The sub prime lenders are much of a muchness to be honest, the bad rep a lot of them have has to be placed in context - they lend to higher risk customers. Since I completed in June, I've had absolutely no issue with them over anything, but I've not had any problems paying the mortgage. The adverse lenders can be more problematic to get a mortgage offer out of, but if you jump through their hoops instead of questioning what they want all the better. I got my offer within 2 weeks of applying, and that included getting ID sorted for me, and getting bankruptcy discharge certs for both of us. My advice would be USE A GOOD BROKER WHO DEALS IN THE SUB-PRIME MARKET, AND LISTEN TO WHAT THEY ADVISE YOU.

Good luck.

to be honest sub prime lenders are far from "much of a muchness". Even on a DMP you should explore the options with a broker who knows the sub prime market but is willing to look at the mainstream deals first. If thge dmp will be cleared by the mortgage and depending on the size and age of the defaults you may not be forced down the sub prime route.

PMB74

About 3 years ago I had a CCJ for a largeish amount and also defaults on a few loans. Birmingham Midshires offered me all I wanted (and more!) on a property. I was paying, if my memory is correct, 2% over base rate for 12 months, reduced to 1% the following year and would have been reduced to normal base rate the following year had I not sold up. I was able to borrow 85% of the purchase price on that deal.

sammyjammy

I have a satisfied CCJ and 3 defaults (just about to drop off - yeah!) and Abbey offered me a mortgage, its fixed rate for two years and is 4.69% (taken out October 2005 when rates were 4.75% I think)