How can I get a mortgage with bad credit??

moneyburner

Hi everyone!!

I'm new to all this and was hoping someone could give some advice. I currently have my debt in a management programme, took me far to long to do, but its done now! As a result of my debt i have a horrendous credit rating, no ccj's but a lot of defaults. I really want to buy a house and have no idea where to start in terms of getting a mortgage. I don't want to approach any of the 'high street' lenders for fear of being laughed at!!! Any ideas?? Thank you

Snaggles

Hiya, you can get a mortgage with adverse credit, however the chances are you will pay a higher interest rate and it will be with a 'sub-prime' lender.

Your options are really to either just do it and accept that you will pay over the odds for a few years (you can then move your mortgage to a high street lender once your credit rating has improved), or wait until the defaults etc have dropped off your credit file, and then you are much more likely to be accepted by a high street lender.

How long ago are the defaults from?

tigtag02

Hiya

I got a mortgage 7 years ago with a bad bad credit rating!! I remortgaged 2 years ago with OH for an extra £15K and with a high street lender and the repayments were £2 a month less :eek:

Just really reiterating what Snaggles has said and I would do it again even if the interest rate was higher than my inside leg measurment

Not sure if they are country wide but if so my first point of call would be The Mortgage Point (think they are a broker & not a lender).

HTH
tigtag

nonsensefactory

Maybe you need to look at clearing your current debts before thinking about taking on more ? It'll be cheaper renting and you'll be able to save up a deposit leaving you in a better position to negotiate.

Burlesque_Babe

If you pop over to the mortgage board they will be able to give some specific advice, but to echo what I was told over there, go for a whole of market mortgage advisor.

I'm keeping everything crossed to get a mortgage offer today or tomorrow to escape the evil 'brand new customers only' GMAC now my redemption period has run out.

I'm now classed as 'near prime plus' - last time I was sub-prime, the next time I change I'l be able to get a prime (ie high street) mortgage yay!!!