Mortgage with Defaults - Dare to Dream

sparra_legs

Long time Lerker,

Me and my hubby are wanting to move and I'm just after a little bit of realistic advice and information with regards getting a mortgage with old defaults.

The situation is as follows,
Currently mortgage stands @ £57.9k house valued @ £75k
Debts of £4k
3 defaults going back 3 years, 1 default going back 2 years. (on both parts)

I'm going to make arrangements to see a Broker, I realise that main high street lenders will be a NO. I understand the rates of Subprime mortgages can be high which I'm willing to pay (want to move to be closer to family so will pay anything)

The house we like is on @ 112k and we have a joint income of 38k. We haven’t been for a Viewing as yet just because without knowing if a mortgage is possible just because I don’t want to get disappointed.

Any advice or similar experiences would be great.

kingstreet

The registration dates and amounts of the defaults, together with the deposit/loan to value will determine where this can be placed.

Ensure you have all three versions of your credit file in your hand when contacting the broker so he can see if one is better than the others and a lender can be selected that way;-

Equifax

https://www.econsumer.equifax.co.uk/consumer/uk/order.ehtml?prod_cd=UKSCR

CallCredit

https://www.noddle.co.uk

Experian

http://www.experian.co.uk/consumer/statutory-report.html#orderReport

sparra_legs

Thanks,

we have both got all 3 credit reports as of yesterday, We've had to correct a financial association with my husbands dad, which un nerves me slightly (he's currently owes 23k from a repossed house) but hopefuly thats sorted now

Experian_company_representative

Hi sparra legs

If you notice any information incorrect or would like to be discuss what’s showing on your Experian Credit Report once you have received it, get in contact with us here and we will gladly be able to help.

Best of luck with your mortgage.

Regards
James Jarvis

ACG

If the most recent default is dated 2 years plus then there will be atleast 1 lender if you have a 15% deposit - potentially more like 2-3.

If the most recent default is dated 3 years ago there will be 1 lender who would potentially accept it with a 5% deposit or more.

So I would not rule out getting a mortgage, the rates/lenders available will be dependent on the size of the deposit and dates of the defaults. The rates should not be too bad - worse case scenario I would say around 6%, although potentially under 5% could be possible.

sparra_legs

We have already been in touch with the credit report agencys to remove his father,

ACG thanks for your reply its makes me feel a littleless nervous about going to see the mortgage broker, I think depending on what we can achive for our current house and savings we'd be looking at a 15% deposit and I have been looking at the affordablity cal's and basing it on 6% APR i've even based in to 7 & 8% just to be on the safe side.

Our mortgage is out of terms so i've check there are no costs for leaving and i they have provided me with a statement to take a long to the MB so they can see the current balance etc.

ACG

With a 15% deposit you should be able to get a lender.