Bad credit need a mortgage

dawn35

Ok this is where im at. I need a mortgage for 120K. Im buying my mums house from her and its valued at 220K. I was declared bankrupt in august 2007 and discharged a year later. I also have 7 defaults still active on my file over the past 2 years.

I have found one provider that will help me but its expensive a 8.75% fixed for 2 years, around £820 pcm repayment and am struggling to find anyone else.

Does anyone know any adverse credit mortgage lenders that can help? The equity in the home will still be substantial and i earn 33k per annum plus commission. Its just my credit thats causing me a huge problem.

Any ideas?

shortchanged_2

That will be the best deal you will get with your history.

Let's face it you are lucky to have any offer at all.

dawn35

OK well i wanted to check that it was a good deal as im not very experienced with this sort of thing. I knew it would cost and its fixed for 2 years where after i may be able to move and get a better rate but i just wanted to make sure.

Thanks

gadjah543

Make sure you look at all your outgoings before you commit.That is a huge percentage of your salary and there is no guarantee in 2 years time that your payments will come down.They might even go up.
The last thing you want is to be in the same position as you were a few years ago.

dawn35

I have looked at the affordibility, I take home £2200.00 per month and have no other credit commitments. The reason I have to do this is my mother took out an intrest only motgage with Skiptons which comes to the end of its term next year and she has no way of paying it off. I would have just taken over the mortgage as i have been payng it every month for 4 years anyway but with my credit they wont let me. She is willing to contribute £200 pcm so that will leave me paying £600 odd so i guess not to bad.

dawn35

Not in cash but the LTV is 50%

shortchanged_2

Who valued the property at £220K? Is that an EA valuation or a surveyors?

dawn35

Suveyors back in Jan. I spoke to a person I know quite well in the Cheltenham and Gloucster (tried them no chance!) and she said due to the state of my credit file its a good deal. But knowledge is power and im thinking hard and fast about this.

shortchanged_2

Also I've just been on the BBC mortgage calculator and things don't add up. I don't know where you get the figure of £820 a month on a repayment mortgage at 8.75%

Even a 35 year term at that rate on repayment will cost £924 a month and £875 interest only.

Dave_Ham

Hi - When and for how much were the defaults for?

Do you have the deposit in savings or are you attempting to take a gift from the equity?

dawn35

ok let me check.....

They are looking at a max loan of £100K, £837pcm intrest rate of 8.75. Sorry I may have thrown you with saying i was looking for £120K.

Yes Dave it will be a gift.

Defaults were for a max of £2k in total.