Help on 2nd time house buy

john1002

Hi,

I hope the resident experts can help, we currently have a property in the market that looks like it is going to sell, and we have found a nice house but have a few credit blips:

The house is worth 180,000 and we now need 146,000. The original mortgage has run 2 years and its redemption is 113600 due to a high redemption charge. We could wait 18mtnhs but we need a bigger house now. My wife has 2 small defaults totalling less than 400 showed as satisfied and I have a repossession but over 7 years ago due to messy divorce, do you think we can now go main stream or still have to go to poor credit providers which don’t have the same fixed deals that were hoping we can look at.

Any pointers would be worthwhile?

john

john1002

Forgot to add how do we ensure we dont get a list of searches when trying to get best deal? if we go to a broker will we only incur one search and thats it?

LisaT186

You mention a high redemption penalty with your lender - have you asked your lender if you can take the deal you are on with you to your new property and take a top up rate and then remortgage at the end of the tie in?

With the defaults, it will depend on how much they were for individually as each lender has limits (most high street are max £150 2-3+ years ago). With regards to the repossession, your credit file only goes back 6 years. Obviously if the application form asks if you have ever been repossessed you will have to answer yes!

A broker may have the facility to credit check you, but it is not that common. The best thing to do would be to obtain your credit file from Experian (can do this online) and take it to a broker, that way they can source knowing the facts and talk to lenders about the situation before having any credit searches or scores done.

Even if you cannot go High Street just yet, the rates available tend to get better as time goes on.

herbiesjp

Your first port of call should be your current lender to see if your current deal is portable, and whether based on your current circumstances they will lend the full mortgage amount that you now need.

Then get a copy of you credit file.

Armed with the deal your curent lender will offer, and your credit file, find a good whole of market mortgage adviser and let them find some deals to compare against what your current lender has offered.

Do not let them credit score you, unless you have seen it is better for you to change lender and you have decided on a scheme.

The reposession should not be a problem any more. The default of £400 should not pose too much of a problem.

A good adviser will look at high street rates for you first and talk to a few lenders to see if they can get "standard" deals for you.

HTH

john1002

Anybody who lives in the northwest particulary st helens know of any good fee free brokers whole of market, rather than pot luck in yellow pages?