Bad Credit Mortgage

merrygoround_3

Hi, would be grateful for any advice anyone has to offer.
My husband and I are currently privately renting a house and paying £1700 per month. We think there's a good possibility that the owners might be selling and, mostly as we have a young son, we would like to try and buy somewhere.

We would need a mortgage of about £240000, and we would raise about £12500 as the deposit (in the region of 5%). In September 05 we actually got a mortgage with Mortgages Plc, via a broker, of £330,000 (self-cert), but that was because we were buying the property we were, at that time, renting and were using a "builders deposit" of 20%
Something tells me that the brokers we, how can I put this, less than snow white in their endeavours on our behalf.
We didn't complete, though we got to the point that the solicitors had the funds, as something unexpected came up with the property and we were unable to resolve it.

So, eventually to my point, how likely, and where to go?, to see if it's possible to raise a mortgage of £240,000 to buy somewhere. We have been renting this property for 13 months and never been late/or missed the rent if that counts at all?
My husband is self-employed on a long term contract but we have bad credit as a) he was ill a few years and also had two redundancies and b) my son was born ill, and remains so, so we had unexpectedly only one salary coming in as I had to give up work.

So...sorry for the book but I would be really grateful for any advice. Our current landlords are being very cagey-they only told us they were having the house valued a few days after we'd signed a new contract so I would like to spend the next few months looking round for a mortgage rather than sitting here waiting for someone to tell us we've got to move again.

Many many thanks in advance for any advice.

revlis_2

If you have a 6 month fixed AST (assured shorthold Tenancy) the Landlord can not get you out for 6 months and even so they have to give you 2 months notice by serving you with a section 21 as per the hopusing act

revlis_2

RE Tenancy Law - If you have a 6 month fixed AST (assured shorthold Tenancy) the Landlord can not get you out for 6 months and even so they have to give you 2 months notice by serving you with a section 21 as per the hopusing act

toonfish

if you have already applied for a mortgage, and the broker has not used correct income figure you need to be very wary as the hunter system now in use by some of the lenders can keep a track of previous applications.

what are his genuine provable earnings, and do you get any other income at all.

this is going to bite a lot of people on the backside in time to come.

there is probably only one lender that would consider this on a self cert basis.

merrygoround_3

Hello revlis and toonfish; thanks very much for the responses.

re the previous brokers-we realised that there may have been something going on when we asked them a question and they old us that there had been a problem with the application but that they'd organised an accountants letter for us...we were a bit taken aback as we were concerned that this had gone on without our knowledge, another reason we didn't proceed.

His provable income is in the region of 45-50k

merrygoround_3

yes, sorry, we do have other income at times. I sometimes take on short-term contract work, very well paid but as I don't know when I'll get offered it I can't prove it, if you see what I mean?

merrygoround_3

revlis, could I ask you a question? Re the 6mths notice on the AST...we signed a new contract on Feb 1st-can they give us notice anytime within the first six months that we have to move on Aug 1st (after 6mths has elapsed)? Or can they only give us an additional two months after six months.
Sorry if that's obvious to everyone but it's been keeping me awake at night!

toonfish

merrygoround wrote:

Hello revlis and toonfish; thanks very much for the responses.

re the previous brokers-we realised that there may have been something going on when we asked them a question and they old us that there had been a problem with the application but that they'd organised an accountants letter for us...we were a bit taken aback as we were concerned that this had gone on without our knowledge, another reason we didn't proceed.

His provable income is in the region of 45-50k

you should be OK then, probably wouldn't need to self cert. I would fnd another broker - make sure it's one you can trust. I would also be asking for a copy of your file, including the mortgage application from the previous broker and let the next one see this before he does anything on your behalf.

merrygoround_3

toonfish wrote:

if you have already applied for a mortgage, and the broker has not used correct income figure you need to be very wary as the hunter system now in use by some of the lenders can keep a track of previous applications.

what are his genuine provable earnings, and do you get any other income at all.

this is going to bite a lot of people on the backside in time to come.

there is probably only one lender that would consider this on a self cert basis.

Toonfish, can you say who that lender is? Thanks for your time.

toonfish

merrygoround wrote: »

Toonfish, can you say who that lender is? Thanks for your time.

pressed thanks instead of quote - it's Platform