SuB Prime mortgage help

nikkiandmidgets

Sub prime Mortgage
My financial advisor has got me a mortgage deal agreed in principal. Its with birmingham Midshires and is a tracker rate currently of 7.04%(I think) with a £599 arrangement fee - is this good? I am in Scotland, currently renting and recently split from husband. Going for sub prime cos my credit history got mucked up when my husband playd funny !!!!!!s and changed his wages acct from our joint acct to his personal one when i found out he had an affair. lots of things bouncing and with me on matrnity leave and not enough coming in to cover commitments which screwed my credit up.

The property is in Scotland - is a flat which is valued at £125,000. i will be paying the sellers £129000 though. I planned on taking a mortgage for £105000 to cover this and was wondering if this would be the best deal for me just now? Can I get a better deal if I take a lower LTV? I am currently renting at moment till I find somewhere. When my mortgage got approved in principal it came back saying sub prime o I guess that means all companies will consdier me the same? I am not sure what my credit history is like as i havent contacted any of the agencies.

\Is here any point trying my own bank - Bank of Scotland Halifax?

Any dvice appreciated as i have 2 toddlers and am trying to get some finacial security for them as well as cope with the split..

Thanks if you can offer any advice.......!

Oh yeah, I had previously posted this in someone elses thread so have reposted as new. As per a comment I have requested my credit report from check my file but have to wait for security key to be posted as I failed on security q's! Hopefully I get this tomorrow so that I can get moving on this...

Kiernan809

Sub Prime lenders will generally tier rates depending on severity of credit profile.

How many missed SL/MTG payments in the last 12/24 months? Do you have any CCJs? Any defaults?

A typical example will go something along these lines. I'm making up the rates as I no longer have access to these.

85% LTV

Light: 0-2 missed payments in last 12 (0 in 3) & 0 CCJs @ 6.5%
Medium: 2-4 missed in 12 (1 in 3) & 0-2 defaults. 0 CCJs @ 6.85%
Heavy: 4-6 missed in 12 (any) & 2+ defaults. 0 CCJs @ 7.15%
Any missed in 12 & any defaults. 0-3 CCJs @ 8.1%

If i remember my old log on details for something like iGroup then I will post a more accurate product plan.

poppy10_2

nikkiandmidgets wrote: »

a flat which is valued at £125,000. i will be paying the sellers £129000 though.

Why???

Debs12

This is a Scottish thing called over over or complete nightmare if you are buying.

Properties are advertised say O/O £115K buyers submit bids depedning on the market varying mostley between 10 - 25% over the asking price. Normally the person bids the most gets it ..silient actuion type arranement. This is again normally over what the surevyor states the property is worth. The rest if you like is good will or just to make sure I got it in the OO system.

As crazy as it sounds that is how they sell houses in Scotland!

Lipstick_2

Seem's ok to me.

You can always remortgage at the end of the redemption period.