Most lenient Lenders 2011

synamon123

Hi,
I've seen a house in need of repair, but with the basics (habitable) and have made an offer. I was just wondering if anyone knew who the most lenient lenders are in 2011?
I have only gone to my bank as i know i have a good history with them, they have on the basic affordability offered me slightly less than i need, i was wondering if there were any other banks/companies i could go to directly who are the most lenient, just to top it up by a few thousand.
I have a 10% deposit, earn 25K a year and am looking for a value of around 121,500. I have "good" on my credit rating and a small amount of debt. My partner will be living with me, but he has a poor credit rating so i didnt know whether it was worth applying with him or just leaving him off?? Hope someone can give some advice! Thanks!

holly_hobby

Not withstanding the income issue, and you only having 10% deposit.

In relation to the conditon of the property (which must have basics such as working kitchen, bathroom/wc, water & elecs to even start), you will probably find a rather larger retention by the surveyor (holding back of a portion or all of the mge advance) until the property has been brought up to "sufficient standard". What is the standard of refurb requried ?

You only have 10% deposit, how do you intend to fund the works/cope with any mge retention ?

I have to be honest, if I were in your shoes I would seek a property that would not be so restrictive, either at a lower price point and a larger deposit to open up the market a bit more for you.

Hope this helps

Holly

synamon123

Thanks Holly, the property has up to date electrics, double glazing, hot and cold water, a fully working bathroom and toilet, larder cupboard and will have a sink unit in the kitchen under the taps that are already there.... Basically needs a really good decorate and has no kitchen work tops or cupboards, no carpet but good floorboards, from what i understand of the critera would be habitable.....??
With regards to the refurb, i'd want the ceilings redone, bathroom moved upstairs, maybe have the walls replastered, then decorated and a new kitchen fitted. We could do it just by fitting a new kitchen and stripping / painting.

We'd be willing to take it on and do it up over a longer period of time, but we have a lot of tradesmen in the family, so are planning on it costing us materials and plenty of tea and cakes...

It will be me and my parter moving in there, so we'd have the two incomes, but i just dont want to risk applying for it with him on the mortgage and it not get accepted because of his lower credit score - do you know much about that?? I dont know how much of a hinderance it will be...

I just love that little house! Thanks!

holly_hobby

Hi

Ok - the propety is not as bad as it sounded in your original post (which is a positive), although the ground floor bathroom may be an issue with some lenders (reduce the amount they agree to loan), as such properties (notwithstanding the location & spec)are generally considered as not being as desirible as those of a traditional layout i.e bathroom on first floor, and the surveyor/lender will be looking at resale value, of which this can be considered an issue. (try and get general opinion form a surveyor/EA on how similar properties faired on survey).

The other issues, needs carpeting (not relevant to the prop value), ceilings (repainted/repaired ? is this water damage or just cracks etc ?), and a kitchen re-fit may cause a retention ... depends upon the surveyors comments. So it will be a "suck it and see" exercise I am afraid.

With regards to your partners adverse, and a 10% deposit - if you don't need him for income, leave him off for now - as it is doubtful you will secure a mge with adverse & minimum deposit).

FYI - adverse credit defaults/ccjs will expire off your partners credit record on of after their 6th anniversary of registration, although the OC can reapply for the registration of a CCJ. (just check with CRAs at the time that his has occurred, if not ask them to remove them as an expired record).

Hope this helps

Holly

ado

As a ball park figure 4 x salary will get you £100,000 mortgage, but then you will loose some of that because of your current debts. You are also in a position where you at looking at 90 -95% mortgages which tend to have tighter criteria than lower LTV mortgages. Lastly you will still need some additional money for costs and fees, as well as your refurb. I think you are going to have to find some more money from somewhere for a larger deposit in order to be able to get a mortgage and this house taking the single income into account.