Mortage advice , bad credit histiory and struggling to get approved

marcuszs

I previously had around £8k of unsettled debts which have now been cleared and payed off for around 18 months.

The only money we now owe is around £700 on a credit card which is our car insurance as it was cheaper to pay this way than paying the company directly , we pay off a set amount each month.

Both me and my girl friend work full time and we have a large deposit to put down and can comfortably afford to pay montly what we are looking to borrow, but no one seems interested in lending us money due to my history.

Are there companys that offer services to people in our situation ?

Will we have to pay an inflated premium due to my history ?

Never realised at the time it would cause me this much hastle and its frustrating as i feel i have learnt my leasson and now live within my means .

Any help or advice would be great , maybe there are a few people on here in the same situation as us.

Dave_Ham

Hi there,

There are many, many people in similar circumstances and I am sure you will again to get a mortgage.

Given the information supplied, cannot be more definitive although there are companies still offering good rates that specialise in previous bad credit applications.

I would suggest you find a decent mortgage broker, or IFA and take with you copies of both of your credit reports.

If you want to provide more details, about how far the debts went (CCJ, default etc.) what deposit you have and your incomes we will be able to give you a general overview of what the mortgage market looks like for people in your circumstances..

Good luck

Dave_Ham

Also, when you say struggling.

Who have you been declined by so far?

marcuszs

With my debts i missed payment and ended up on a monthly payment plan ,

We have around £80k deposit through inhertance and have a joint income of £30k (ish) , we are looking to borrow £110k-120k.

Dave_Ham

So long as your current conduct is good and assuming your OH was not party to the repayment plan, given the size of your deposit I would expect there to be a solution.

Inevitably you would pay a premium, although it would be unlikely to be stupidly high.

My recommendation would be to get yourself a decent, recommended broker who I would think will be able to source something sensible.

Make sure your bank account looks sensible, as due to likely credit score would expect an underwriter to run through this in some detail.

Conrad

I have known lenders decline cases where people are on any kind of payment plan, for 2 reasons;

1) The 'responsible lending' test forces lenders to conclude an applicant is high risk where they are on such a plan, which effectively is a plan that confirms they cannot meet the ORIGINAL payments on time in full. Therefore to ascede to a mortgage request is deemed irresponsible.

A broker in particular can get caught be this. I know of a broker getting a huge fine when the clients subsequently could not meet mortgage payments . The clients argued in court that the broker should have known they could not be expected to meet full payments on time in full.

2) Lenders are genrally inclined to state any debt under as payment plan should be bought fully up to date with the proceeds of clients cash deposit.

Also be mindfull that investors that buy mortgages currently do not want such cases in the bundles they buy.


A lender might to do this, but probably better to explore options such as doing it in anothers name, someone with clean credit.

Dave_Ham

Payment plan finished 18 months ago

marcuszs

Dave_Ham wrote: »

Payment plan finished 18 months ago

Yes and all debts were cleared then .

Dave_Ham

Yeah sorry I got that first time, but not sure above poster did so was just bringing to their attention..

marcuszs

I also ment to add that the girlfriend has a great credit history

Dave_Ham

Then I definitely think a good broker, once ascertained all of the details will find a solution for you (especially taking on board partners credit file)

All the best...