Cheshire Mortgage Corporation

ndoody

I have a default on my file, it was entered for £16,000 2 years ago and it's ongoing @ £200 per month, now showing just over £10K owed. Reasons for default is pig headed attitude of the credit card company doubling my interest rate, having missed one payment because they changed their direct debit details.

So, I now have 2 children and we're desperate to get a house - which is proving impossible. In terms of my credit file, it has an otherwise unblemished record with loads of small and large loans settled in full without a single missed payment. But seemingly, that doesn't seem to matter to any mortgage company.

I've struggled to get a mortgage, haven't been able to go for the houses I want (because they often wanted 20-25% of £250K deposit) and have gone for last ditch shared ownership. Happy with the house, happy with the deal...but then it was the hardship of trying to get a mortgage in these circumstances even for £85,000 because the companies who would give me a mortgage with big deposit (lower LTV) don't do shared ownership.

In a last attempt, I've found an online mortgage advisor for people who're in really bad debt (CCJ/bankruptcy/etc). Guy is really sound, and he said he has a lender who would take my case on...it is CMC who're part of Blemain. He explained that the repayments were high, the interest was high - but it was 100% LTV. He said we could use my deposit money for getting a settlement on my default at a reduced amount to improve my credit then look to go with a better provider down the line.

For all intents and purposes I can, with no hardship, afford the higher payments - the higher interest - the high arrangement fees and all the bad stuff that comes with such a mortgage. I'm more desperate just to get on the property ladder with a nice place for me and my family.

So I tried to use the search to find cheshire mortgage but I found a lot on Blemain - and none of them were good (warning posts actually). The re-occuring theme seems to be "I fell late on a payment and got screwed", well I have no intention on falling late on any payments (and there is really no reason to, I'm self employed with reserves in the ltd company account to see me through for some time).

So my question, is there any other reason to avoid these people? Is there a better way? It seems that nobody else is offering what they're offering, none of the high street will even entertain me with the default and shared ownership.

ACG

They dont do 100% LTV products as far as im aware.

Personally I wouldnt touch blemain if they were the last lender on earth. I have only ever suggested them as an option to one client but literally told the client to convince me she wants to use them... she didnt.

Do you have ANY deposit?
If the defaults/CCJs etc are all over 2 years old (24 months and a day) and you have a 15% deposit there could be a lender for it.

Once everything is over 3 years old, there could be a lender with 5% deposit.

could you tell us what you have on your credit report?
Default/CCJ/DMP/IVA
Amount
Date
Satisfied or not

How much of a deposit you have as a percentage.

GMS

As above. IF you are a genuine poster then consider renting.

ndoody

GMS wrote: »

As above. IF you are a genuine poster then consider renting.

lol, why wouldn't I be a genuine poster? I'm already renting, but the place is unsuitable for our kids - mostly the garden needs a lot of money spending on it. Long story short, this was supposed to be a "rent to buy" scheme that we're getting shafted over as the owner now says he "can't sell it to us because he'd have to sell all the other houses in his port folio since the bank he has 30 buy to let mortgages with went to the receivers".

Anyhow, I really want to buy and buy now. To the point I'm willing to pay over the odds - if I have to.

ACG, I have 15% deposit no problem of this shared ownership property becuase that is only about 13K which is fine. The 50% ownership is £82,500 I need to get mortgaged.

The default on my file is detailed in my post, but here goes exact details for you :-

Name Mr Neil Doody Date of ****
Terms 0 @ £ 0 (Monthly) Status Defaulted
Current Balance £ 10,231 Start Balance £ 0
Credit Limit £ 0 Default / Delinquent Balance £ 16,431
Start Date 04/08/1999 Date Updated 21/09/2014
Date Last Delinquent Date Satisfied
Default Date 23/01/2012 Payment Amount £ 200
Previous Statement Balance £ 16,431 Cash Advance Amount £ 0
Number of Cash Advances
During Month
0 Credit Limit Change No Change


So as you can see, it's for a large amount and is not settled...but I have been paying the £200 every month on time. Next year it will have been 3 years.

ACG

I dont think there are any adverse type lenders who do shared ownership.

From the 24th January onwards you may be able to find a lender who would allow you to lend against a non shared ownership property with as little as a 5% deposit.

As it stands at the minute however I think you would need 15% but on a "normal" property.

The above is with the exception of cheshire mortgage corporation. I have just checked their site and they do do 100% of the buyers share. But I still wouldnt touch them with a barge pole (from a personal point of view).

ndoody

ACG wrote: »

I dont think there are any adverse type lenders who do shared ownership.

From the 24th January onwards you may be able to find a lender who would allow you to lend against a non shared ownership property with as little as a 5% deposit.

As it stands at the minute however I think you would need 15% but on a "normal" property.

The above is with the exception of cheshire mortgage corporation. I have just checked their site and they do do 100% of the buyers share. But I still wouldnt touch them with a barge pole (from a personal point of view).

Thanks, so there are lenders that consider an "active" default with only 5% deposit? That is very interesting, and worth considering (I could afford a 5% deposit very easily, on any house). The 15% mortgages were banded around, but finding 15% of houses in the 200K region is difficult.

And yes, that is the problem with CMC...it seems many people are of the opinion not to touch them with a barge pole, which worries me. The only saving grace is that I know they're unscrupulous, I know they're going to overcharge me to the hills for the finance and I know they've been busted by the FSA.

But assuming, if I accept the terms put in front of me and I maintain all of my payments on time - it should be the case there is nothing untoward they could do. Any experience of settling early with them, when it comes to a time that I can transfer to a better mortgage company?

Dave_Ham

I concur with ACG, given the date now; can you not wait until January and then potentially get a 5% + deposit from a reasonable lender on a reasonable rate.


Good luck

ACG

I suppose if your in receipt of all of the facts and are happy with them then their is no issue. Theyre not going to do anything untoward - they are regulated.

Its more a case of you having to pay through the nose for a mortgage with them.

Never done a case with them so no experience in writing business with them.

ndoody

Dave_Ham wrote: »

I concur with ACG, given the date now; can you not wait until January and then potentially get a 5% + deposit from a reasonable lender on a reasonable rate.


Good luck

Thanks, yeah - this does seem like an attractive idea. And not one I had thought was even available to me, so many mortgage advisors / lenders and what not are just chucking me in the bin right away when they see active default for a large amount.

I didn't know that 3 years was key, and that it would open up mortgage lenders to me as early as January next year for a 5% deposit. I'd probably rather own 100% of the house anyway!

So, going on next January - can you recommend who's a good lender for this and maybe who's the best mortgage advisor. Consider that I'm also self employed (ltd company since 2007).

ndoody

ACG, I note from your signature you're a mortgage advisor yourself.

Do you think you'd have a package I could investigate in January, given my default, and given I'm self employed. If it's something you deal with, do you have some contact details - we could maybe talk in January

Dave_Ham

Virtually any reasonable broker is likely to suggest the same lender, as there is not really any decent alternatives with circa 5% deposit.


Presenting and packaging in a manner the lender will like will be crucial and could affect success.


I would fancy ACG would be able to sort this if you request so and is privy to full facts.


Best of luck