Bad Credit Mortgage

bashiraad

Hi,

I currently have debts of about 15k (credit cards, and a few small loans). Unfortunatley on the way i picked up one default.

All my other records are ok (i think), as i have been keeping up with payments.

Can someone advise me if it is possible to get a mortgage if i have one default.

Also would it be possible to get a mortgage which adds my debts?

If so does anyone know any providers/broker which can help me?

My salary is 40K pa but with bonuses i can make about 45K

Thanks

Jammasterjizz

Hi Bashiraad,

Having a default is not an impediment to getting a mortgage these days. Even lenders like Alliance & Leicester will allow defaults if they are satisfied and over 36 months old.

However, it sounds likely that you would be 'non conforming' and not be able to get a mortgage on the high street. Nevertheless, there are many niche lenders who would use a network of brokers rather than high st branches and would love your business.

I presume you will need a 100%+ mortgage which would allow you to consolidate loans with a secured loan.This would cut down the choice of lenders significantly. BM Solutions might allow you to do this, but it depends on the size and age of the default.

You should be aware of the dangers of going from unsecured to secured borrowing. A good broker will draw you attention to this and the other potential pitfalls of borrowing over 100%.

hopeless_case_2

GO to a boker they definately have ways of getting mortgages than joe blogs doing it himself does.

chriscuk

I currently owe 30k with a CCJ and got a mortgage no probs through MoneyQuest (broker).

The lady I spoke with was really helpful and understood my position. They took care of everything...the only thing about having debt and a 1st time buyer though is the higher rate!

i got it at 6.39% fixed for 2 years....i suppose its better than no mortgage at all.

They are are https://www.moneyquest.co.uk

Good luck!

Dylanwing

I went through a local broker and got a very good deal with SPML (Southern Pacific). Accord are also very good on the 'near prime', and if you check Moneysupermarket or similar, I'm sure other deals will be found. There are assumptions that you are looking for 100%, that might be an issue, especially in the current climate (Or if you are not looking at 100% it won't be an issue.) Moneysupermarket.com is a good site just to check out the market place and see what is available, and it has a bit where you can enter your 'black marks' as all lenders havbe different definitions of bad credit.

bashiraad

Thanks for all the advice guys.

I have started contacting some of the brokers you mentioned.

A 100% mortgage would be ideal, especially if i can tie in all my current debt.

But i think i can mange to collate a good enough deposit as well (through friends & family)

In my area (NW London), the properties range from 180k+ for a 2 bed flat, and over 230K for a small 3 bed terrace.

I think i may be able to raise atleast 25k-35K as a deposit.

Would a 200K mortgage be difficult to get under my circumstances?

On the plus side, my salary is good, and will i will be getting a good raise and bonus this year.

bathgatebuyer

I managed to get a remortgage with GMAC through a broker - my own current account Bank turned me down as a bad credit risk caused by a period of unemployment a year and a half ago now, but GMAC have been pretty good so far with no problems or fallouts!