Gifted Deposit. will it help...bad credit.

James1980

ACG, I was just generally going with the information on for example Santander rates when putting in a £40,000 mortgage with 10,000 deposit.
checking based on what they say is where I am getting the £100 savings from, but I guess the bank doesnt give based on the rates provided on their site they give rates based on individuals and affordability.

for example.
house value - £55,000
mortgage value - £44,000
over 25 years
yes we have a santander current account.

5 year fixed - Initial rate - 3.74% going to 4.74% ....£995 booking fee -- £226 per month

now i realise mortgage prices go up.. and that insurances etc need to be paid on top of that price, but we current pay rent for £400 and already have life insurance and content cover, so insurance wont be a lot extra for building on top of though. so difference between current rent and mortgage based on the prices generally quoted by santander its at least £150 of a difference.

James1980

i guess another thing i should be asking is..

regardless of my chances.. with having bank account with Santander for 12 years, a few loans with them over the years, missus has a credit card with them (no money spent)

should we arrange a chat with one of their mortgage advisors or should we seek advice from an Independent Mortgage advisor/broker?

ACG

Santander are not a lender i would advise you to go to, if anything i would probably avoid them.

I do think you will need a broker and for this though especially if your looking to do it soon as most lenders are going to ask for bank statements as soon as 99% of lenders see those i dont think theyre going to be making you an offer.

I genuinely think this is one for a broker to try and package up as best as possible.

James1980

ok will investigate a mortgage broker then..

i would of thought a relationship with the bank you are trying to get a mortgage with.. good or bad credit would of helped. but you are more of an expert at this sort of thing that me

James1980

Just a slight update on this we actual did go and speak to Santander.

After checking they seemed to think they could offer us a mortgage but it would we would need to pay 25% or more... deposit.

they checked affordability and seemed to think that was not an issue, and worked out a lot of different figures and came to the conclusion that if we paid 25% or more they would be happy to give us a mortgage. was not an official AIP but was as close as we where looking at the moment.

I guess other brokers maybe able to get us deals, but we will wait until we can officially confirm what sort of deposit we can obtain before proceeding.

the person we spoke to was not actually that concerned about the Overdraft they where more concerned about us having the credit card which is 24% interest.

will update this thread with future news at a later time.

fewcloudy

Hi James

The person you spoke to was more concerned about your credit card debt than your overdraft, so here is my advice.

24% is a ludicrously high interest rate to be paying, surely you would be better to apply online immediately for a 0% balance transfer, and shift as much of your credit card(s) debt as you can from a 24% card to a 0% card?

It sounds like you are (or could be) making much more than the minimum payment to clear the balance fast, so maybe getting the longest length of 0% interest won't matter (usually about 24-30 months, with a 3% transfer fee). But the current 0% card available from Tesco is for 12 months and has no transfer fee :beer:

And if you are able to make the big payments you said you are making each month, then 12 months might see you right I reckon.

What's not to like?

Loads of info. here;

http://www.moneysavingexpert.com/credit-cards/balance-transfer-credit-cards#tesco12

Regards

fc

James1980

thanks fewcloudy will look into that.. mortgage person said similar that they have a 0% card at the minute that we could apply for but once he seemed to confirm that a mortgage could be arranged, he stopped talking about the cc and was more interested in us finding out if we could meet the deposit and then if went for a lower mortgage he thought with paying high amounts into it at the minute we'd have it cleared in no time anyway.

thanks for the advice

ValHaller

James1980 wrote: »

So out of the authorised OD would be a starting point then?

Yes. In your situation an overdraft is a loose cannon.

It can be recalled at any time by the bank and if you don't pay up pronto (within a month?) you may end up with a default on your record. Banks do seem to look at their overdrafted customers and see what debt they are carrying. And they do decide if you look risky to withdraw the overdraft.

The upshot is that despite paying everything on time and in accordance with T&C's, you can find your credit record trashed. Don't think of fixing this with payday loans ....