Bad credit Mortgages who's the best supplier??

jimm24

Any particular gems amongst the pack?I would be looking for short term mortgages with as minimal redemption fee's as possible,as I renovate houses,but my credit has taken a whack recently with several outside influences.And the redeption fee's are a killer

Mr_helpful

its horses for courses what sort of adverse are we talking about

jimm24

Credit was fine until late last year when I started working for myself and split up with my wife,cash flow has been limited.I kept up most payment until probably december,and plan to pay off most debts when my first project sells(hopefully 2-3 months)

frugalpam

jimm24 wrote: »

Any particular gems amongst the pack?I would be looking for short term mortgages with as minimal redemption fee's as possible,as I renovate houses,but my credit has taken a whack recently with several outside influences.And the redeption fee's are a killer

I've got a 'Prospects' mortgage (aimed at people with poor credit history)with Chelsea Building Society, and they have been brilliant to me. I had a poor credit rating and 2 CCJ's (small amounts, both satisfied) They gave me a fixed rate mortgage of 5.9% in Jan last year. Prior to that, I was with GE Money Home Lending who were horrendous - higher interest rate which seemed to keep going up and up as the fancy took them.. Do not touch GE Money Home Lending - they are a total nightmare. They even held up my transfer to the Chelsea and were so bloody minded about supplying the requested information, that the Chelsea's legal dept wrote a strong letter to them (they soon provided the necessary info after that.
All my Chelsea payments have been on time (15 months now) and they've indicated I can have a 'normal' mortgage when the fixed rate term is up in Jan 08

Pam

PS It's just reminded me that I am going to go after GE Money for unfair exit fees

UK007BullDog

All subprime lenders have massive exit fees, give limited lending etc.

I guess you might have to speak to a broker to fish out the one with the least redemption fee but most take a percentage of the loan amount or 3 to 12 months interest payments as a fee for redeeming the mortgage early.

JoeK_3

jimm24, this is a classic case for a bridging loan.

Bridging loans are ideal for short term developments of up to one year. As the loans are secured on property, an adverse credit history is not a problem.

The only drawback on a bridging loan is that the maximum loan to value on one property is around 75%-85% but this can be higher if other properties are offered as security.

You are moving into the realms of commercial loans and not domestic.

Hope this helps

JoeK

toonfish

JoeK wrote: »

jimm24, this is a classic case for a bridging loan.

Bridging loans are ideal for short term developments of up to one year. As the loans are secured on property, an adverse credit history is not a problem.

The only drawback on a bridging loan is that the maximum loan to value on one property is around 75%-85% but this can be higher if other properties are offered as security.

You are moving into the realms of commercial loans and not domestic.

Hope this helps

JoeK

a bridging loan is very expensive way of funding this - rates will be much higher than a mortgage of a similar amount and I think you'll find the credit checks will still apply.

commercial development finance is another kettle of fish altogether

JoeK_3

Toonfish, as with domestic mortgages, there are bridging loans with no redemption penalties.

Bridging loans are available from as low as 2% above base, that equals 7.25%. Adverse credit is not taken into consideration.

I have heavy knowledge of the commercial mortgage market.

JoeK