I need a GOOD broker... fast!

Jarvissa

Hello folks,

I'd be grateful for any help/pointers you can give me.
My situation is thus -
I earn 24K basic (+ bonuses and other unproven income totalling about 10K) and I have a deposit of 22K (could stretch to 25K at a push). I already own (outright) a property worth approx. 190K which I do NOT want to sell/mortgage/secure anything upon. I have never had a mortgage before.
The property I want to buy is 105K. So I need to borrow 83K maximum.
Sounds a sure thing surely? Apart from I have a less-than-great credit rating.
It's 790 (and "fair") according to Experian. Due to 2 past defaults from my student days (oddly the default dates are logged as 2007 in both cases... despite me not having serviced these accounts since at least 2005). The amounts are quite trifling. One for £149 and one for £650.

I went to my bank (Natwest) and told them my situation... including ALL the gory details of my credit report. The *%$! there assured me that wouldn't be a problem... given my earnings, other assets and deposit amount. He issued me with an 'agreement in principle' letter and told me to trot off and make an offer on something....

I duly did this... went back to NW only to be told (at the very beginning of the app) that I'd failed the credit check and it was a total no-no.

So here's my problem - I've offered 105K for a property, its been accepted... and now I need a mortgage for 83K.

Am I living in cloud cuckoo land? Will anyone give me a mortgage? and if so... who? I'm painfully aware of the devastating impact each credit search can have on my rating....so I don't want to make the situation worse.

My gut tells me I need a good broker with sub-prime contacts.

How do I find a 'good' broker?
Can anyone recommend someone?

I really do not want to miss out on this property because of a couple of stupid youthful mistakes.

Apologies for the length of this - I'm just horribly anxious.

ACG

I would think most brokers should be able to do this for you (im presuming the defaults have now been satisfied?)- bank brokers are tied to their products only. Do a quick google search, avoid banks and estate agents and you should be ok.

If they havnt been satisfied then Dave Ham (a member on here) i think specialises in tricky mortgages. It might be worth having a word with him?

Simon_gloster

Your loan to value seems a little too high for near prime deals through traditional sub prime routes.

My issue here is the £10k unproven income. It looks like rental income with tax not declared. Proof of bank statements from a lender might open up a whole can of worms.

ACG

Its only part of that £10k which is unproven im presuming as the rest is bonuses.

As Simon says (no pun intended), you should forget about the undeclared - or DECLARE IT - its tax evasion! But based on the deposit and the income i think this is possible via a broker.

holly_hobby

Why not satisfy the "trifling" defaults to demonstrate to financial providers that although you had previous financial difficulties, you are in very different place now, and now in a more stable financial position have duly repaid your creditors.

This would demonstrate to the lender financial responsiblity and maturity.

The big deposit will help, but you need to satisfy your defaults for any real chance of a decent deal. (the lender may also enquire why the accounts went into default in the first place - so always a reason that was unforseen/out of your control, rather than pure finanical mis-management, or a situation of simply won't pay not can't pay).

Your defaults registered in 2007 won;t fall off your record until 2013 - which may have a bearing as to whether you decide to repay the creditors and have the Ds marked as satisfied.

Another Q - is this to be your primary residence or do you require a BTL mortgage (aka property to be let) - this is based on the fact that you already own an unencumbered property so I'm unclear which will be your primary ?

Hope this helps

Holly

Jarvissa

Hi folks,

Many thanks for all your replies.

Simon, you're right - I am renting out my current house (notwithstanding any problems, this should amount to about 7K over the year. The remaining 3K of the 10K I mentioned are work bonuses, that aren't captured on my payslips. Nor are they fully guaranteed.) however I must stress I'm not trying to pull a fast one on the tax! I've been a landlord for less than a month - and I've been advised that lenders won't consider this income in my favour until I have a years worth of statements/tax returns/etc with regard to it. That's why I called it 'unproven'. I should perhaps have labelled it 'projected' instead.

With regard the defaults - they are now (as of last Friday) settled. I didn't pay them before, because I didn't know they were there. I've had an inexcusable head-in-sand-mentality re: viewing my credit report, and I'm certainly paying the price now. As for the reasons behind the defaults - none other than I was young, at Uni, and saw all the various ODs and credit cards on offer as free money to be spent and then forgotten, without consequence. Stupidity personified, I know!

This property I'm trying to buy will be my primary residence... for me alone!

I've now found a seemingly extortionate broker who's promised me the moon (in mortgage form) but with a 2K arrangement fee (+300 for survey) and a brokers fee of £600.

I'm now questioning whether its worth me buying at all

holly_hobby

Well done J for settling your D's !!

There are various brokers on here who look at adverse ( I currently don't place), Dave Ham - is lovely and if he can guide you to an adverse lender he will (as thats his bag I think), I think Conrad is another guy who seems to be ok with non std queries.

Avoid paying any non-refundable broker fee - until you get a bit more feedback on here - there are copious amounts of adviser who frequent the board, and collectively if there is a home for this, they will know it ... then you can approach a broker knowing that the fee you pay won't be wasted.

Hope this helps ..

Holly

Jordan_k_s

I'd highly recommend Dave Ham who posts on here, I have a unsatified default from 4 years ago and thought I'd struggle to get a mortgage but with his help the application is in process and things are looking very positive

Jordan