Adverse credit, mortgage help!

Lovestoshop!

Hello Everyone,

My mortgage is up for renewal in July, and over the past year I have received defaults on my credit, I am with payplan. Does anyone know of any good reputable mortgage companies that offer mortgages, without ripping you off, to people with adverse credit? I don't have any CCJ's or anything like that, only defaults.

Any advice would be appreciated.

Thanks!

toonfish

you need to see what your current lender will offer you first. What you will be offered elsewhere depends on the size and nature of the defaults but as they are so recent it could well become a problem. Who are you with now?

Lovestoshop!

I am with Mortgage Express.

Zingara

Halifax helped me when no-one else would - I had a student debt which had resulted in a CCJ. It had 2 years left to run on it before it was wiped off my credit history. I had no other debts other than small credit card amounts which was paid off monthly and no defaults, a decent paying job and although wanting a 95% mortgage it wasn't a huge amount. The rate they offered was their standard rate and they didn't rip me off in any way whatsoever that I know of!

This was about 3 years ago.

Karen.

AndrewSmith

Zingara wrote:

Halifax helped me when no-one else would - I had a student debt which had resulted in a CCJ. It had 2 years left to run on it before it was wiped off my credit history. I had no other debts other than small credit card amounts which was paid off monthly and no defaults, a decent paying job and although wanting a 95% mortgage it wasn't a huge amount. The rate they offered was their standard rate and they didn't rip me off in any way whatsoever that I know of!

This was about 3 years ago.

Karen.

Halifax will most likely not help in the situation of the OP. This is because in general defaults are considered less favourably by lenders than CCJ's. The reason for this is as follows:

A CCJ is nothing more than a County Court Judge stating that one person owe's another a sum of money. It does not necessarily represent failure to meet monthly payments on a credit agreement. It could be a genuine dispute over a bill or you losing a claim case and having costs awarded against you.

A default is only issued after continued delinquency (term used by the lending organisations) and failure to maintain a credit agreement. It is an indication that the applicant has not kept up payments on a previous loan, credit card, mobile phone agreement etc.

Zingara

Thanks for that. I always thought a CCJ was the worst thing that could happen to my credit score! Learn something new every day!

Karen

toonfish

Mg_NG wrote:

Whether it's adverse credit or CCJ, I bet there are lenders out there who can help you out or at the very least equip you with information on the simplest thing to do in these kind of situations.

Here's a site I've found just recently. They might be able to help.

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

avoid it

luckyfool

As above, see what if anything Mortgage Express will offer you if you stick with them. Otherwise you are likely to be looking at Near Prime rates with Credit Repair Lenders. Depending on the loan to value you are needing then there are some pretty competitive rates available out there.

Most of the relevant lenders will not deal direct with consumers so you really need to source a broker (or even 2) you trust and who is not going to charge a high fee, and get them to come up with some quotations for you to compare.

sandanista

AndrewSmith wrote: »

Halifax will most likely not help in the situation of the OP. This is because in general defaults are considered less favourably by lenders than CCJ's. The reason for this is as follows:

A CCJ is nothing more than a County Court Judge stating that one person owe's another a sum of money. It does not necessarily represent failure to meet monthly payments on a credit agreement. It could be a genuine dispute over a bill or you losing a claim case and having costs awarded against you.

A default is only issued after continued delinquency (term used by the lending organisations) and failure to maintain a credit agreement. It is an indication that the applicant has not kept up payments on a previous loan, credit card, mobile phone agreement etc.

I don't think that is correct, as a CCJ cannot be obtained without a default notice being issued first. If you have gone as far as getting a CCJ it means that even after you were issued with a default AND you received a claim form from the court stating the creditor's intention get a a CCJ, you did nothing to settle, hence the judgment. CCJs will always be considered badly.