Mortgage advice poor credit.

JoeBourbon

Just need some local advice. My wife and I are trying to work out if getting a mortgage is realistic. Not great credit history, never missed a rent payment of over £600 per month and we both have good secure jobs. House we like is around £80000.00 so we'd be paying a lot less per month but I guess that doesn't mean much. Any advice?

BatCat

Find a good mortgage broker.
Also check and ensure that your credit history is as bad as you think it is.
Look at improving it.
https://www.unbiased.co.uk/profile/mortgage-adviser/mcdowell-financial-services-471733
McDowell Financial Services were pretty good when I contacted them last year.

mije1983

How much do you earn combined?

JoeBourbon

We earn around £40000 to £42000 between us at the moment Looking for a miracle I think. Silly with disposable income and frustrated that a mortgage less than our rent is harder to get. Anyone with bad credit here get approved? Thanks for advice so far.

saverbuyer

Should be grand if you have a 10% deposit and no missed payments in the last 6-12 months.


Sadly paying your rent on time will have no effect. It's sort of expected.

JoeBourbon

Thanks. Just mentioned the rent to show its easy paying over £600 per month so would be easier paying a lot less of a mortgage payment.
So local mortgage broker or national broker like First Union? Does it make a difference?

saverbuyer

JoeBourbon wrote: »

Thanks. Just mentioned the rent to show its easy paying over £600 per month so would be easier paying a lot less of a mortgage payment.
So local mortgage broker or national broker like First Union? Does it make a difference?

Never heard of first union tbh. I would go with a local. Ignore the PMs from brokers on here.


How bad is bad exactly?


Halifax seem to be happy enough with adverse. Do you have a deposit?

JoeBourbon

Experian rating of between 250 and 350 each. Missed payments years ago and other debts at the minute. Working towards improving rating but need to get away from renting sooner rather than later. Not expecting a top deal mortgage. Probably higher interest but have over 5 thousand for deposit. Might squeeze a bit more from family help.

saverbuyer

JoeBourbon wrote: »

Experian rating of between 250 and 350 each. Missed payments years ago and other debts at the minute. Working towards improving rating but need to get away from renting sooner rather than later. Not expecting a top deal mortgage. Probably higher interest but have over 5 thousand for deposit. Might squeeze a bit more from family help.

Credit score is pointless. Ignore it.


Look to reducing the debt. No point holding 5k deposit and pay loads of interest on debt. Realistically for deposit, stamp duty and fees, you'll need 11k minimum.


Good luck.

JoeBourbon

The price range would mean no stamp duty and deposit would be a family loan so we don't have the cash. Is guarantor usually an option? 80k house, 10k deposit and guarantor. Would that help?

saverbuyer

JoeBourbon wrote: »

The price range would mean no stamp duty and deposit would be a family loan so we don't have the cash. Is guarantor usually an option? 80k house, 10k deposit and guarantor. Would that help?

I know Barclays have a springboard product but I'm not sure these are really going to help with adverse credit history. It's more about helping with the deposit.


http://www.barclays.co.uk/mortgages/family-springboard-mortgage


Just so you know, lenders don't like borrowed deposits. Even from family members. You'll be required (and the person giving the money) to sign a form saying this is a gift and won't be paid back.