bad credit mortgage

middy60

hi all me and my partner are looking at a 2 bed apt it has a builders deposit of 5% but our broker says most lenders do no reconise theese anyway his found us a mortgage at 7.45% i have quite bad credit with 2 or 3 ccj's and loads of missed payments my other halves credit rating is good any thoughts if we could get a better deal
thanks

middy60

the mortgage would be mortgages plc

JoeK_3

What are your individual incomes?
What loan amount are you after?

JoeK

middy60

my partner is a director of a company thats been going 10yrs but shes been ther just 12 months and payed in divedends of 24k a year, i earn 17k a year been with same company for 10yrs,the apt is 152500 with a 5% builders deposit to come off so approx 144k
thanks

JoeK_3

Looking at your circumstances, I can only assume that the Mortgages plc mortgage is a self cert mortgage and according to your credit history, you need both your incomes for the mortgage.

JoeK.

poppy10_2

You're right, the builder's conrtibution doesn't count. Do you not have any deposit of your own?

If not then you are in trouble. Lenders will already be reluctant to lend to you because of your CCjs and your partner doesn't get a regular salary. Add to that no deposit and 3.7x joint income mortgage required gets you "computer says no", I'm afraid.

middy60

ok but why does the builders 5% deposit not count

JoeK_3

middy60 wrote: »

ok but why does the builders 5% deposit not count

I think that was an over exaggeration by a poster.

A vendors deposit is not accepted by all lenders and what was probably meant was that you do not have many options available to you by your present circumstances and that way that you are being paid.

You can always remortgage at some stage in the future if the property has gone up in value.

JoeK

homer_j_3

But remember - 9 times out of 10 - new builds are overpriced (so the builder can pay your 5% deposit without eating into their profit margins.) so your property will most likely drop in value within and not recover until all properties are sold on the plot at least.

The lenders available are limited - did your broker show you their research and what other lenders had been considered and why the one chosen was the best? If not, go back and ask them as this could put your mind at rest or confirm that the broker has been lazy and gone for the easiest pick of the bunch.

middy60

he tried northern rock and they sed no but if anyone on here wants to try and help drop us a pm

benjab

Quite often with a bit of common sense you can find a sub - prime lender with rates quite similar to those of the high street lender. For mortgage information pertainent to people with adverse credit check out
http://www.mortgagelenderforbadcredit.net

-Benj-