Kensington Mortgages

billybear1

Hi everyone again,

So, I have been stalking the forums as usual as I have been gifted a deposit for mine and my fiances first house. the problem is, I was a stupid student and have defaults against my name. I know the consequences and can face up to them. I am however, now in a position to start my mortgage as i have a career and good income.

The only feasable option for us to have a mortgage is with Kensington. 5.9% fixed for 2 years then 5.1% above LIBOR! I have defaults of just over 2 years, so would need to stick with Kensington for 4 years. Couple of Q's.

1. Anyone know if LIBOR is likely to rise to silly levels in the next 4 years?

2. Do Kensington offer 4 year fixes at anything reasonable?

3. Any other possible lenders.

Regards,

BB

Senior_Paper_Monitor

Insufficient information given to suggest who may or may nor be suitable.

Kensington will only take your application via a broker anyway - so find yourself a mortgage broker who will look at your case in detail and advise on suitable lenders.

This will include evaluating your possible situation at the end of the 'deal term'.

LIBOR - tends to be slightly more volatile than BoE base and certainly may separate further than normal during the forthcoming (whenever that may be) recovery period.

billybear1

Sorry,

80% LTV mortgage on around a 130 - 140 property.

Partner perfect credit history, 8k income.

Myself 29k income. 5 Defaults! Ranging from 1.7k to £47. With the other 3 being 140 230 and 310! All over 2 years old.

Ruined credit history I know, but still, thems the facts!

Senior_Paper_Monitor

The only way to consider a complex case like yours is with full declaration to a qualified broker - this is not a 'do it yourself' or 'online advice research' project. Dates/amounts, circumstances in detail will be necessary for advice.

Kensington will only take your application via a broker - so why not benefit from a broker's analysis of your situation based on full disclosure ?

billybear1

I will be using a broker, but have come to respect the advice of the people on this forum and am always looking to gain insight from experience, I.E if anyone has been in this situation before, they may have something to say on this matter.

Thank you for your advice though.

BB

neil421967

Hi Billybear,

I regret going with Kensington, but was not given much choice, they bought my account from West Bromwich.
The problem is, most of these so called sub prime companies pass the accounts around. My original account with WB was similar to what you have stated, however, when Kensington bought it, they informed me once they had it, then changed the terms to suit themselves, and I could do nothing about it, I ended up after the fixed rate, paying 9.7% interest.

A building society worth asking a mortgage broker about for sub prime is The Principality Building Society in Swansea.

Yes they do mortgages in England, Scotland and Ireland, but do not pass your account off mid way.
I used them for my first house, the interest was fair, and had no problems. Just wish I would have used them for my property after, but that was a !!!! up on my part.

handytips

The Principality tend to look on each case individually and so do the Monmouthshire (will load the rate for being out of area approx +0.25%. The Principality are not based in Swansea, their head office is Queen Street Cardiff and the Monmouthshire are based in John Frost Square in Newport. Neither are sub prime lenders and you would need to have really good reasons as to how the defaults happened, as the defaults are for relatively low amounts, have you paid them off ? and i would strongly recommend that they are settled as this will look better on any application, once again if you are going to have a try with either of these societies then i would recommend you use a broker especially if you are considering the Monmouthshire, use someone who is based in the South Wales area. But remember Neil has it wrong neither are sub prime lenders. The Bath BS are also another worth considering. Good Luck