Mortgage But bad credit ! Help pls

chrisbee_2

Hi i currently lookin for a mortgage but ive got a poor credit rating..... i dont really want to pay 1500 -3000 arrangement fee or is that what i will have to pay until my credit score improves??

herbiesjp

Poor credit rating does not mean high arrangement fees necessarily - you choose the deal that is right for you.

Why is your credit history bad? What has happened?

You will be able to get a mortgage, but the rate offered may not be the best rate around

Have you got an up to date copy of your credit file?

chrisbee_2

Ok, so do you think the prices ive been quoted are too much? what sort of price should i expect to pay?

yes ive got a copy of my credit file im currently in arrange payment with a three of my creditors and have 1 present 1 previous default on my file

herbiesjp

Are these broker fees you have been given or actual arrangement fees relating to specific mortgage deals?

If broker fees, you can find fee free mortgage advisers.

If they are arrangement fees, you may be able to find slightly higher rates, with lower arrangement fees

You have not given any figures to work with so it is difficult to say much more

chrisbee_2

Here a Quote from a couple of lenders/brokers:

We do not charge a fee for residential mortgage advice; however there is an administration fee for processing each of your standard residential mortgage contracts. The typical administration fee is £499. For impaired credit lending the typical fee is 1% of the mortgage loan. For Buy to Let and Commercial Mortgages a fee of 0.5% of the mortgage loan size applies of which £500 is payable on application with the balance payable on completion.

AND

Think carefully before securing other debts against your home. Adding existing debt to your mortgage will both extend the repayment term and increase the overall cost of debt. Your home may be repossessed if you do not keep up repayments on your mortgage. The overall cost for comparison is 8.4% APR. The actual rate will depend upon your circumstances. Ask for a personalised illustration. There will be a fee for the mortgage. The precise amount will depend upon your circumstances but we estimate that it will be £2995. This fee can usually be added to the loan amount. However, in doing so, interest will become payable on this amount over the full term of the loan or until it is repaid

The value of my dads property is £98000 with a purchase price of £72000 (rights to buy)

what are all these fees pls help i dont understand......