couple of questions on getting a mortgage

moneywise22

Well we have had a mortgage offer from GMAC-RFC who offered us 95% at a rate of 6.59% fixed for 2 years. This was given to us by a mortgage advisor (whole of market). He said he had tried a few high st lenders first but all said no. I think this one specialises in adverse credit mortgages. This seems a high to me and I would like to try to get a better deal. I am thinking of checking out the rates of a few lenders and then applying online to see if we get accepted and get an agreement in principle. Can anyone recommend a good mortgage deal at the moment? Or anyone with one default who has managed to get a good deal?

Many thanks

Madjock

beware of applying to lenders yourself and getting too many credit searches, this will mess up your credit rating.

moneywise22

Thanks Mad. If anyone can recommend a lender who has previously given a mortgage to someone with only light impaired credit i would just try them. If they said no then i would go back to our original offer.

Matt_Bristol

Moneywise

Im a mortgage broker and sorry to be the bearer of bad news but i dont believe you will get a 100%+ mortgage with a unsatisified default , i havent found anyone yet who will do it.

If I was your if you havent already done it get a copy of your credit report to check how what your history looks like , its normally a good idea to let your mortgage broker have a copy (blank out any important numbers like card numbers) this will give you a better chance of being placed with the right lender first time.

Some lenders will ignore defaults but they will cause problems for most mainstream lenders until they are satisfied for 3 yrs or more

Be warned that most of the lenders who lend 95% near prime will charge Higher lending Charge which could potentially cost you £1.5k +

If you cant pay off your debts lenders will take the following from your total joint salary before income multiples

Credit cards - 3-5% of outstanding balance x 12
Loans - monthly payment x 12

Most lenders will lend 3-3.5 times joint but some will increase multiples if you go for 5yr fixed rates , i have seen lenders using affordibility calculators or a debt to income ratio instead of income multiples lend up to 7 times salary ( not advisable )

The fact you have just started a new job will be ok as long as you arent in a probationary period which can cause some lenders issues

Some lenders do what is called credit searching rather than credit scoring which means a real person actually looks at it instead of the that scene from Little Britain "the computers says no" , with scoring you will loose points due to the unsatisfied default and the one you have satisfied if it still shows but searching allows a reasoned approach if current credit is showing as good.

I hope this helps , goodluck in whatever you decide to go for

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I am a Mortgage Adviser

You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.

herbiesjp

moneywise22 wrote: »

Thanks Mad. If anyone can recommend a lender who has previously given a mortgage to someone with only light impaired credit i would just try them. If they said no then i would go back to our original offer.

Of you are looking to compare against the 95% Gmac deal, you may well find other deals out there that may be cheaper.

The problem is, all lenders have different ways of classifying their adverse schemes, so whilst one lender may call you ultra light adverse, others may call you near prime. The name is not the problem, but it is the way it can slightly affect the rate offered that makes it difficult to find a good deal.

Have you gone back to your adviser?

Mr_helpful

Have you tried abbey? best through a broker but they do quite heavy adverse at times.

moneywise22

I forgot to say. We are definetely going for the 95% mortgage and not paying off our debts. I just want something to compare the gmac offer against. I looked at abbey's website but their calculation doesnt lend us enough. Any more suggestions please?

moneywise22

Well theres a turn up for the books!! - We have just had a mortgage agreed by Yorkshire Building Society! - Fixed at a great rate of 4.79% for 2 years. I can't believe it - just hope our offer is accepted on the house now. :-)