CCJ & 2 Defaults - what are my options?

sgreer

Hi there

I currently own a property and have a mortgage with Santander. I moved almost two years ago now, and the property has been tenanted since.

I am looking to purchase another property with my girlfriend closer to where I work, however we've recently been told by our mortgage advisor (London and Country), that we're currently not eligible for any of the mortgages that they deal with. The reason for this is that my credit report shows as having two defaults and a CCJ over the past 24 months (only one of the defaults is in the last 12 months).

I'm attempting to get the defaults removed under the pretense that all warning letters and correspondence were incorrectly sent to my old address, however I'm unsure as to whether Lloyds will agree to remove them - certainly the early signs are that they won't.

I earn a decent salary - £36k + £30k bonus, and my girlfriend earns £20k (with excellent credit history). We have a 20-25% deposit to put down on a house that's £209k. My father is also very financially sound, and would be happy to guarantee a mortgage if this would help our cause.

I'd like to know if anyone has any suggestions as to whether and where I'd be accepted a mortgage, and what sort of rates/conditions I can expect?

Thanks in advance

Simon

GMS

How much were the defaults for and which months?

Do you have permission to let the property mortgaged with Santander?

ACG

Why did they send the paperwork to the wrong address? Did you update them with the correct address? If not i think you will find it unlikely they will remove.

I would go and see an advisor who specialises in adverse credit, Dave Ham on here for example does a lot of Adverse mortgages.

sgreer

CCJ was Apr 2011 for £189.
First default was June 2011 for £830
Second default was Jan 2012 for £830

I haven't applied for permission with Santander, however I believe my mortgage adviser made the assumption that they'd given consent. To add to that, my property has been let for over a year, and I am now able to serve my tenant notice and sell the house if this will help (although I don't want to unless I have to).

It's worth noting that we've had an offer accepted on a house and the current owners have said that they'd rent the house to us provided that we proceed with the sale as normal, excluding the actual money transferral bit at the end. This is a great option for us as we'd be able to move in shortly, and hopefully allow my credit file to heal a little. There is however a big risk involved - apparently you need around 10% deposit for this type of house sale, and I want to guarantee that I'd be able to get a mortgage come January, so as not to lose £20k.

Appreciate your help - thoughts gladly welcomed!

Simon

Thrugelmir

sgreer wrote: »

I'd like to know if anyone has any suggestions as to whether and where I'd be accepted a mortgage, and what sort of rates/conditions I can expect?

Suggest you approach a lender or broker who specialises in adverse credit. As you'll struggle with main stream lenders.

Letting without permission may well make matters worse than they are if you are found out. So worth correcting this situation as well. If you don't intend returning to the property.

Yorkie1

sgreer wrote: »

It's worth noting that we've had an offer accepted on a house and the current owners have said that they'd rent the house to us provided that we proceed with the sale as normal, excluding the actual money transferral bit at the end.

Do you mean that the existing owners will rent the house to you while your purchase of it goes through?

I have a sneaking suspicion that this may no longer be legal or, at the very least, if their solicitor gets wind of it then this will no longer happen as it is so strongly against their interests that they would be foolhardy in the extreme to do it.

Simon_gloster

This is just riddled with nastiness.

Unauthorised tenancy, abbey if they found our wont be happy. You have to convert rhis to a buy to let or get consenr as the debt will be taken into account as you cannot prove consent. If you do get consent lenders will use the rent you get ro offset the mortgage.

You have made an offer on a property and you cant borrow. Worst move ever. If I was vendor i'd look for other buyers.

High street probably a no no due to recent adverse, and sub primers wont fallbover themselves for your business. If GE money wont do it, very few will. Speak to a broker or withdrawl your offer.

sgreer

Santander have now agreed to add consent to let. As I've had a mortgage with them for five years without any defaults or late payments, it was an automatic acceptance.

I've made a verbal offer on a property which has been agreed. No money or documents have changed hands, so I'm certainly not bound to anything.

Why do you think that sub-prime lenders won't be interested? I don't owe any money or have any outstanding debts (other than my mortgage), I also have a decent-sized deposit and our finances show that the mortgage amount would be easily affordable. I would have thought that would make us excellent candidates for a sub-prime mortgage?

Thanks

Simon

GMS

With a 20-25% deposit there may well be options for you.

Sub prime of old is not in existence today. Near prime is the new buzzword and allows for much less adverse credit.

You need a broker to help with this one.

Wh05apk

sgreer wrote: »

I also have a decent-sized deposit and our finances show that the mortgage amount would be easily affordable. I would have thought that would make us excellent candidates for a sub-prime mortgage?

Thanks

Simon

If it's so easily affordable why do you keep getting defaults? From what you say you earn very good money, yet seem to struggle, an odd credit issue can be overlooked by lenders, but regular ones will cause more of a problem, seriously restricting the lenders available to you.

sgreer

Thanks for your insight Wh05apk, although I was hoping for constructive advice rather than a dig. I'm just trying to find out what my options are, not have the facts of my financial situation questioned. I don't quite see how it would be in my interest to embellish at all anyway.

The CCJ relates to a water bill which I had no idea about as all correspondence went to my old address - ultimately my fault as I failed to inform the water company that I'd moved address. The defaults are a similar story - they relate to old Lloyds TSB accounts which I'd completely forgotten about as I moved over to Santander several years ago, and then moved house shortly afterwards without changing the correspondence address. I take responsibility for being too blase about these things during this period, and realise that my options are restricted as a result, however I'd like to know what IS actually available to me, rather than receive criticism.

Thanks

Simon