Urgent!! Mortgage Advice Please.

AlibeeAlibee

Where to begin.......

We live in an inherited property, since 2009. We really dont want to lose the property. We are settled here, as are the children.

Our overall income, I suppose is on the low side. We could do with more, but then couldn't we all. Having said that, we are solvent every month and we've done the maths, we have enough disposable income to cover paying a mortgage every month.

We were not able to clear all borrowing on the sale of the previous property so it was agreed the outstanding amount could be brought with us.
My sister had an interest in the property we took the appropriate actions to buy her out.

To be able to raise the money to clear these debts and secure the property properly for the future, we took advice from a Mortgage Broker.

After assessing the state of our affairs, his advice was, and what we entered into, he arranged bridging finance for us. This commenced at the end of Jan 2013 and is therefore due to end Jan 2014.

Why Bridging Finance?? The brokers advice. To give us the breathing space to improve our attractiveness to lenders and we had a deadlines we had to meet, with legal matters surrounding my sisters interest. Our credit rating is not brilliant but I wouldnt say it was poor either.

We have remained in touch with the broker and as planned he was to help us arrange raising a mortgage to enable us to stay in the property. The clock is rapidly ticking and I have lost confidence with the broker over the past few weeks, he doesnt seem as committed to helping us now, to secure a mortgage.

I have approached the Bridging Finance company directly and they can offer us an extension to the loan which affords us an extra 3 months to find a solution. This comes with a fee.

Please, can anyone point us the right direction ??????
Who to approach or where to go to secure a mortgage
Any advice would be greatly appreciated.
Also happy to answer any questions if you want specifics.
Seasons Greetings, Alibee

ACG

How much is the property value?
How much is the bridge?
how much are your other commitments?
How much are your incomes (as in anyone going on the mortgage)?
When you say not great credit can you elaborate (we dont need the story just the facts) - CCJs/Defaults/Missed or late payments - if so when, how much were they for, when were they and are they satisfied.

That should help us determine if it is possible.

AlibeeAlibee

all figures approx but around the correct value
Property Value: £190k
Bridging Costs: £105k ( includes interest and extension fees)
Other commitments, our Credit cards: £5.5k
Our credit history: We've had CCJ's, cleared 2009. £209
A default on 2nd mortgage on previous property, we cleared this with bridging finance. £6k in full and final settlement. ( I got 90% of the debt wiped out. ended up reclaiming PPI and got more than 6k back, this was my success story of 2013 )
Nothing missed or late for a long time time now. 2009/2010 was when I took control and got my husband and I in order.

Regards, alibee

ACG

You dont say what your incomes are, im going to assume you have a combined income of say £25-30k plus. If you do, then there is no reason this should not be possible to place.
At that loan to value there are a handful who will consider it even with the adverse. The rates wont be market leading but i would put money on them being less than your current bridge.

Get a new broker (Away from an estate agents) this should be achievable but time is becoming tight to complete by the end of Jan - although that in itself should still be achievable meaning you should not need to extend.

AlibeeAlibee

Our annual net income is ... £22.5k
Our monthly out goings average around £700

ACG, would it be possible for you point us in the direction of specific lenders???

regards, alibee

ACG

I cant, its a regulated industry and me telling you of lenders could be seen as advice or leading which could result in me losing my license as i do not know enough about you.

But aside from that, this will be very tight on affordability so i think its best a broker goes over the affordability and finds a lender where it will fit.
Also the lenders im thinking are not on the high street and some do not deal direct with customers.

EDIT:
I have just seen Kingstreets post below. I misread, £22k net means it wont be as tight as i initially thought.

GMS

Did the default on the second charge lead to a repossession or was it settled prior to repo?

How does it show on your credit report?

kingstreet

AlibeeAlibee wrote: »

Our annual net income is ... £22.5k

Lenders usually deal in;-

gross annual basic salary

and

gross annual variable earnings, such as overtime, bonus, commission.

These are before tax and NI, not after.

AlibeeAlibee

ACG, Kingstreet. have looked at DH payslip, done sums, gross income would be just over £25k.

GMS, The 2nd charge was settled, no repossession. I negotiated a full and final settlement.
I'm pretty sure This shows on credit report as settled, since Jan 2013.

The broker we have been dealing with is independent, away from estate agents.

Hmm, next question I guess is, where is best place to look for a new one?? Are there any online directories??

I'm a bit stuck, regards, alibee

ACG

I tend to use google for anything i want. I suppose i would just do the same for a broker.

There is a directory called unbiased.co.uk but im not sure how in depth it is.

Dave_Ham

Before you start searching down brokers, it is imperative you have your Experian, Equifax and Call Credit reports.

How the secured loan arrears and settlement present themselves on the report will be crucial and a word of caution on affordability as this will be tight too.

The types of specialist lenders you are likely to require will not be doing mainstream lender income multiples.

Ensure no broker credit checks you until they have justified to what lender and why.

Good luck