Help with subprime rate

chrislee2810

Hi guys,

I wrote the bellow sometime ago, we were going to wait until the CCJ dropped off before applying. We have now been put in a position that we may have to do it sooner (landlord wants to sell property). We have initially spoken to a broker who has said that we will be on a higher rate of interest, which I can accept but he said that it will be roughly 6%, I thought this seemed high. Can anyone please tell me if this seems high for my situation?

I have had credit problems in the past;

CCJ £308, issued 30/09/11 and settled 25/02/13
Default £400, issued 11/01/12 settled
Default £189, issued 29/12/11 settled

In 2011 I was made redundant, hence the defaults. I have been in my current address for 4 years and in my job for 5 years. I am currently on £63000 a year and my credit utilisation is 50%. I pay out £600 pcm (not including rent)

My wife is self employed and has no adverse. Her out goings are £500 pcm. Year one she earned £15k, year 2 £19k, year 3 £23k and year 4 £40k.

We would ideally like to find a house for £200k with a £20k deposit. We will be looking in September and may be able to get our deposit up to £30k.

Do you think there is any hope for us?

ACG

I reckon it could be done closer to 5-5.5%
However thre is the potential that it could be placed on the high street...not a huge chance, but there are 1 or 2 high street lenders where it would fit criteria.

chrislee2810

Thanks ACG, it's not that we mind going on the higher rate as we would look to remortgage once they have all dropped off. We are speaking to the broker on Monday to get the ball rolling.

ACG

Well in that case, based on what you have said it can probably be done all day. You have a couple f potential high street lenders who would look at it and if not then maybe 2 "adverse" lenders.

chrislee2810

Hi, I thought I would give you a update. I have spoken to the broker today who seems to know what he is doing, it sounds like it might be a struggle. He tried to get a AIP with skipton and it was a straight decline. I have to admit that I am not feeling overly confident.

chrislee2810

So it turns out that skipton have changed their lending criteria and will only accept a default if it was settled over a year, one of the defaults was settled November last year. They will consider the application once it hits a year. We may have to go down the adverse route which is slightly annoying, unless I can convince the landlord to hold off until then. The only issue that I have is that it still might be declined even though skiptons BDM said that it would for their criteria.

chrislee2810

It would *fit

ACG

I dont think Skipton would do this at 90% LTV. Fitting criteria and passing the credit check are very different.

chrislee2810

So we have managed to get a DIP with Aldermore, I have been happy with the broker so far but are there other lenders that I should consider ACG as there rates are rather high?

ACG

There is 1 or 2 high street lenders I would try this with, failing that there is another lender who would do it at around 5-5.5%.

Not a massive saving over Aldermore' 6%.

chrislee2810

I am just wondering whether I should talk to the broker, I bank with Halifax and Nationwide. I am just wondering if I should look at Halifax through my broker?