Adverse credit motgages

bart203040

Okay so the situation is that my credit isn't very good, however I am looking to get a fairly small mortgage of about £50,000 although I can afford a deposit of around £15,000. I have applied for a mortgage through the AIB although I fully expect to be turned down, I earn a decent wage and don't really have huge outgoings, its just that dodgy credit rating I have.

I have read a little about these so called adverse credit mortgages where they want a bigger deposit and have a much higher interest rate, I would be willing to do this for a few years until I can get a half decent mortgage, however I am very suspicious of these type of mortgages as there doesn't seem to be a whole lot known about them.

Can anybody give me a bit of advice on this, I know the best advice is probably just to avoid the whole idea but theres a load of reasons why buying this house would be good, not least that it would mean that I am not paying the huge rent I am paying at the minute. There is also a plan B if I cant get anything sorted of somebody buying the house and I rent it back off them for a while, I dont really like this plan though for obvious reasons.

Anyway any advice would be appreciated as I know next to nothing about mortgages, also I live in Northern Ireland if that makes any difference.

Thanks!

kingstreet

The best advice you'll get is obtain all three versions of your credit file and put them in front of a whole market broker.

Speculative applications which result in a wasted credit search can do more harm than good.

Thrugelmir

bart203040 wrote: »

however I am very suspicious of these type of mortgages as there doesn't seem to be a whole lot known about them.

There's no difference other than certain lenders specialise in adverse credit circumstances. Just as HSBC's target market is the opposite end of the spectrum i.e. above average incomes.

GMS

What are the credit issues? CCJ's, defaults, late payments etc?

You may find adverse lenders will not want to secure on a property valuaed at less than £75,000.

As has been said get copies of all credit files and get them to a decent broker.

ACG

You have given very little information so its impossible to say whether you just need a lenient lender or an adverse lender. Bad credit depending on your view can be anything from late payments through to payment plans/bankruptcy. It could be 10 years ago or 2 months ago.

I have tried to specialise in the more adverse side of things as i find it more interesting than doing the normal run of the mill mortgages.

The types of lender varies but it could be anything from a subsidiary of a larger well known company or it could be a smaller building society. These types of lenders are not dodgy typically their rates are higher but not massively higher, they will just never appear on a best buy table.

bart203040

Hey thanks for all the replies!

Well I would consider my credit quite bad, I did a credit check through checkmyfile.com and it was in the red, 1 ccj expiring on 2016 and a couple of other little things. Also I am not on the electoral roll which apparently damages credit quite badly, I have since joined it although I am not sure how long it takes that to go through.

When you suggest speaking to a broker do you mean like a financial advisor? Or are there apecific impartial mortgage advisors who dont speak for one particular company? I have spoken to 3 of the main banks over here (Ulster Bank, First Trust and Danske bank) and two of them have said there would be no point in even applying as I have used a payday lender in the past (although never had any arrears with them). None of these advisors have been able to give me any advice other than what their specific conditions are.

Oh, also the bad credit mortgage websites that I have seen all want me to enter details into an online form, this seems a little unusual as my details will be all over the place, would much rather just speak to somebody on the phone.

ACG

Ulster bank if theyre anything like Natwest overhear are one who do not touch pay day loan users.

You need to look for a Whole of Market or Independent mortgage advisor.

In England/Wales this would be easy enough to place. Different lenders in NI so i couldnt say for sure.

bart203040

Yea Ulster Bank are just RBS with a nice Irish name lol.

Thrugelmir

bart203040 wrote: »

Also I am not on the electoral roll which apparently damages credit quite badly,

The lack of history does impact. As it's your registered address that enables a profile if you to be put together. With gaps in your profile then there's always the question of what's missing. Disappearing underground so to speak is no longer an option.