Any advice on government loan? & default advice

bumblebee2

Hi

My husband & I are looking to take advantage of the Jan 2014 government 20% loan. I heard recently that it wont be available to people with bad credit. My husband has a credit score of 700 and 2 defaults (defaults 3 and 4 years old) and i have credit score 999 and squeaky clean. Do you think we would be accepted with husbands defaults? Does anyone know the critera? Could we be accepted for Help to buy scheme?


Also regarding defaults do you know who would accept us for mortgage with £740 & £1500 defaults from 3&4 years ago? Perfect since then and my score is 999 with good borrowing etc?


I hope this makes sense, i would appreciate any advice. Thank you.

kingstreet

There is no 2014 Government loan.

The current Help To Buy - Equity Loan scheme will continue to offer upto 20% interest free loan for five years on newbuilds, in return for repayment based on the future value of the property.

Help To Buy - Mortgage Guarantee which starts in January will give a Government guarantee to the lender so they are encouraged to offer more higher loan to value mortgages, from 90% to 95%, but there will be no equity loan. This will apply to new and second hand homes, replacing the NewBuy scheme.

You need a reasonable credit history, probably a better one for HTB-MG as this will be lower deposit lending overall.

I suggest you speak to a whole market mortgage broker to see what options you might have and the amount of deposit you'll need.

align700

Check Aldermore out they have been great for us, they Underwrite every case and they dont mind defaults if over 36 months and no credit scoring
we did our mortgage application on a Tuesday and survey Wednesday and offer in post next week took 2 weeks top service

http://www.aldermore.co.uk/intermediaries/residential-mortgages/lending-criteria/

Dave_Ham

With the defaults in the main, you will require a 15% deposit in order to purchase a property. It is unlikely that you would be eligible for the help to buy scheme, but dependent upon the details of his Experian, Equifax and Call Credit reports.

Incidentally (and you all heard it here first) I would be very surprised if there is not some sort of intervention Dec/Jan time that either delays, or postpones indefinitely the help to buy extending to existing (and not new build) properties

There are already noises about artificially increased houses again and now the new build developers have been helped out, expect some feeble excuse.

Just my opinion mind you and love to be wrong...