Specialist Mortgage Lender Advice

Jonnyk82

Hi guys,

This is my first post so be gentle :-)

I have accepted an offer of for my current house which is in my sole name.

We have found a 4 bed detached house on the market for 190000 we have been told they would accept a offer of 185000. We are very interested in this property.

The equity from the sale will be combined with my partners savings to make a deposit which equates to a 25% deposit.

The problem is I have bad credit. I have a maximum of 2 months mortgage arrears I finally cleared these arrears this month (FEB 2014) I have overpaid my mortgage from the start of the arrears to show willingness to catch up and clear them. The arrears originally occurred due to a divorce and to compound things the CSA made a comedy of errors with my payments which is now resolved. Unfortunately my ex wife was not using the money I was giving her to pay the mortgage, and after a long court battle the court awarded in my favour and my ex wife left the house. my mortgage lender was very understanding and agreed to allow me to apply to have my ex wife taken off the mortgage which they successfully agreed too.

My current partner has a very good credit history, and we have been told she would have no problem applying for a mortgage on her own with a mainstream high street lender. The only blocker is that my partner only works part time and without my income she would only get a very small mortgage.

I have heard there are some specialist lenders that may allow mortgage arrears, although after checking some of their criteria it looks like the fact I had 2 months arrears looks like it going to cause me problems. I understand that the rates and fees are going to be higher, but are there any lenders willing to look sympathetically at my arrears situation. If it wasn't for the divorce the mortgage arrears would have never been an issue.

My income is 32500 basic & 1200 annual bonus my partners income is 10800. I'm in a very secure job where I have now worked for 14 years.

The driving factor is that we need a bigger house as the family is growing.

Thank you for your help, and time guys.

Cheers
:j

ACG

There could be a couple of lenders who will consider this.
Your deposit will help definitely.

I would try to find a mortgage broker (avoid estate agent based brokers). Rates could potentially be from under 5%... although without knowing a lot more info its difficult to say for sure. There are 3 lenders in particular im thinking of but none are on the high street.

GMS

When was the first missed mortgage payment? When was the last?

Definitely need a broker for this. Don't go applying at random as rejections will harm scoring.

Jonnyk82

Thanks ACG,

That sounds a little more positive than I was expecting. I will have to try and find a broker that has access to these lenders.

I have thought about renting temporarily, but if a new mortgage is possible that would be my preference, so the growing family do not have to much upheaval.

ACG

Dont hold me to it :-p

A lot more info is needed (which is why i think sitting down with a broker is the best bet) but the fact it has gone to courts and you can probably evidence that it was not your fault as such as you thought you were paying it may help sway an underwriters decision.

If the broker suggests a high street lender i would walk straight out of there.

Jonnyk82

Thanks GMS,

The first month the mortgage went into arrears was November 2012 then it went to 2 months in Jan 2013. The arrears were cleared at the beginning of Feb 2014.

I know I may not get the answer I'm looking for but I thought I'd put it out there for some advice.

Cheers

GMS

Do you have any other bad credit, i.e missed payments elsewhere, defaults, CCJs etc?

Have you spoken to your current lender to see if they would be willing to help?

Jonnyk82

I have 1 late payment on a credit card from March 2012 showing on my report, but nothing else. I have no CCJ's or defaults .

Due to how helpful my current lender was during the divorce they were my first point of call, however they have said that they would no be willing let me move the mortgage, and they advised me that a new app would more than likely be declined due to the arrears.

Jonnyk82

I think the issue is that I only cleared the arrears at the beginning of this month :-(

GMS

Speak to a broker.

Given the circumstances there will be options. Getting the best rate is the challenge.

Jonnyk82

Will do, thanks for your advice.

I'll post an update to let you know how I get on.