Mortgage Advice Needed 30% LTV but Bad Credit

Immy87

Advice Needed Please

I need to raise £100k on my property, currently I own it outright with no mortgage or loan on it. The property is worth approximately £350k so its a fairly low LTV I am asking for. I take it the best option would be to get a mortgage on it? The only other problem is that I have a patchy credit rating, fairly bad I think, missed payments in the past, also overdrafts on 2 bank accounts which I never paid and subsequently the accounts have closed. I have also been unemployed for a while and have recently started a full time permanent job earning £25k a year.

And advice will be much appreciated.

Many Thanks

kingstreet

Order copies of your statutory credit file from all three CRAs and take them along to a meeting with a good whole market or independent broker.

Equifax

https://www.econsumer.equifax.co.uk/consumer/uk/gb_consumerletter.ehtml

Experian

https://secure.wiseconsumer.uk.experian.com/wiseconsumer/secure_index.html?data=00

CallCredit

https://www.callcredit.co.uk/stat-report-online/index.php?action=register_display&tpl=regPurchase

The £2 paper copies are fine. Don't sign up to schemes which give you your inside leg measurement. They are a waste of time and money.

Dave_Ham

Spot on, get your 3 credit files as these will be essential.

This will obviously be tricky, but given the equity and loan to value there will be a solution.

The prevailing factor will be achieving the mortgage on the most favourable rates.


All the best

Thrugelmir

Immy87 wrote: »

also overdrafts on 2 bank accounts which I never paid and subsequently the accounts have closed.

How much did you default on?

When were the defaults?

holly_hobby

Checkmyfile.com is a multi agency search engine, and will give you your files from all 3 CRAs listed above in one hit (ignore the noted "credit scores" you will see displayed which are meaningless for mge apps, you're interested in what, when and whom has recorded arrears, defaults and/or CCJs against you).

Its a free 30 day trial, and easy to cancel on line - link for you if reqd ... http://www.checkmyfile.com/.

Obv, at 4 times income with a blighted credit history, you do need the services of a broker, whom will source any solution without you damaging your credit rating further by submitting apps to lenders whom you have no hope of success with, to which the basis for the 100k equity release will need to be agreeable (nb - tax debts, gambling and if its 100k debt consolodation :eek:, will be an issue).

Just as a side issue, adverse is recorded for 6 yrs from the date of registration, when it then "falls off" or disappears from your credit history (being classed as "spent") - thats why Thurls. has asked how long ago the blips occured, as waiting to apply until your historty is clear again, may be an option you haven't yet considered.

Hope this helps

Holly