Would a 250k deposit outweigh poor credit history?

ferry

We are thinking of moving home and have around 250k in equity but we will struggle to secure a new mortgage under present circumstances.
Would selling and releasing this equity as hard cash make any difference to how we proceed in terms of being able to offer ahuge deposit on a new place?
Just wondering if having such a big cash deposit softens some of the blow when potential lenders look at our case?
Some of this will be used to clear all outstanding debt of around 15k
Just curious

Thanks as usual

David_White

Having a large deposit can help your cause with some lenders, however it will ultimately come down to what the credit issues are.

Mortgage arrears?

ferry

David_White wrote: »

Having a large deposit can help your cause with some lenders, however it will ultimately come down to what the credit issues are.

Mortgage arrears?

yes but not in last 12 months. All mortgage payments now up to date.
Arrears still unsettled with a couple other unsecured creditors though.

David_White

It's achievable but you'll need someone experienced in adverse cases and I wouldn't expect a fantastic interest rate.

SavingSteve

It's also relative. 250k sounds like a lot, but on a million pound property it's "only" 25%, which isn't considered a bigger deposit. What % of the new property purchase price would that be?

Also, whether that's cold hard cash now or generated from selling as part of a chain will make little difference to the lender. Could help with the seller if you're not in a chain, depends how competitive the sales market is in your area.

ACG

Ive got a case going through at the moment (not offered yet, but the underwriters are mulling over it), the lad has a 25% deposit but mortgage arrears up until 3-4 months ago.

Assuming £250k represents a pretty chunky deposit I would imagine there will be options, infact I would be pretty sure there is. But it all comes down to the finer details. It would probably mean higher rates and if you are looking at a £400k mortgage for instance you are going to notice it on the repayments a lot more than someone after a £100k mortgage.

It can probably be done, but I think you would be wise to sit down with a broker and your credit reports to find out if it can be done and if you would be happy with the options.

ferry

To answer the question- looking at buying at around £400k but because of the arrears issue pre 12 months ago we're on 4.74% var
I think Santander will listen to product change after 12 months so would the best idea be to secure a better rate from them then port?

Thrugelmir

Are you looking to increase your mortgage as part of the process?

ferry

Thrugelmir wrote: »

Are you looking to increase your mortgage as part of the process?

No. In short. we'll keep within the current parameters to be sensible