Help/advice for adverse credit buyer

Finch691

Hi all,

Background -

We are looking at buying the house we currently rent. Our landlords have been amazing - reduced the value of the property by 5%, held off selling for as long as possible and have always been straight with us.

They need to sell as they have financial commitments. We were aware of this from the beginning of the tenancy 3 years ago but they cannot wait any longer. They are even looking at selling to investors who want to keep tenants so that we don't have to move should we not be accepted for the mortgage.

Genuinely nice people.

The problem -

My wife and I both have adverse credit. We have tried to improve our credit scores with some success. We have just been rejected for a 90% ltv mortgage and our only option is to look at an 85% mortgage.

We have struggled to find about 7% but managed, with family members offering to gift is the remaining 3% however 15% kills this dead in the water. So far I have been unable to find any lenders who will offer 90% mortgages to people with adverse credit.

We have a young disabled daughter and have finally found a stable home that suits our needs and the biggest killer is the effect the move would have on lo. Not to mention the amazing investment opportunity buying our home would present.

We don't want to look at moving to another rented property and trying again in a few years but it is increasingly looking like we will have to. I am so stressed trying to make this happen and it is at the point that I may have to bite the bullet.

The question-

Does anyone know of any lenders that can help? It is so heart breaking getting so close to find out that that we will probably be back at stage 1 and the last 3 years of saving and jumping through hoops to improve our credit have been for naught.

Any advice/help would be appreciated

Finchy
Xx

Torfoxwell

Depends how adverse you are talking really ....put what youve got etc on here there some great brokers that can offer some input

A good broker is worth the weight in gold ..

ACG

If you can say what you have (ie default/CCJ/Late payments), what ti was for (ie credit card/mobile phone), when it was and if it has been cleared (and if so when.

Finch691

Okay thanks for prompt responses.

As far as I can tell what killed the 90% mortgage -

Husband -
Default account to mobile phone provider from 3 years ago.
Returned standing orders on bank statements (between my own accounts)
Using too much of available credit
Score - 521

Wife -
Went over credit card limit (now settled)
Took payment holiday from loan - account shows as up to date however bank didnt inform us the 3 months would show as missed payments.
Score - 485

There may be other flags as well however these were the only points that were mentioned to us.

Finch691

So far the 2 brokers we have tried have advised that they could only place is at 85% ltv.

ACG

Any chance you could answer the questions I asked? It is the details that can make the difference.

Finch691

Please see above - i I thought I had answered?

Sorry if not enough info but as far as I know that is all that affected our application. At least that is all were advised on.

Torfoxwell

How much the defualt was for ? When did you got over the limit , was the default settled , how much are you wages etc ?

ACG

It may be what has affected it, but there is not enough information.
Can you list it like this:
Default - Mobile phone - 06/2010 - satisfied 08/2010
Arrears Status 1/2/3/4 - Credit card - 06/2010 (the status will appear on your credit report as 0000123 - the zeros are payments on time, the 1 is a late payment, 2 is 2 late payments etc.

Finch691

Default - was £400, now £200 - on going payments. Date on credit report shows closed as default in Jan 2015.

Wages -
Husband - 24k
Wife - approx 7k
Benefits (disability, carers, child benefit, tax credit) - approx 7k

Finch691

I will try to - please bear with.