Struggling to get a mortgage

tessieboo123

Hi There,

Myself and my partner have been told by our mortgage adviser that we will not be accepted for a mortgage at the moment. Our credit scores are both poor mostly because of lack of credit history I think. However we both have a default on our files, one is correct and settled and the other is incorrect and I've been in touch with the ombudsman about it in the hopes that I can get it removed both are about two years old.
We've been working to improve our credit rating over the past few months but its slow going. We have a 20-25% deposit ready to go so its really frustrating to be stuck because of our scores.
Has anyone got any advice around getting a mortgage deal with poor credit rating?
Tess

ACG

Find a new broker.
With that level of deposit, I suspect you will have options, although the date of defaults is the most important, the more historic the better the rates will be.

tessieboo123

What kind of options do you think might be available to us?
I've heard of adverse credit mortgages but was told one of those could mean paying £800 per month instead of around £500 if we were able to get a normal mortgage.
Any advice gratefully received!

ACG

Because of the unsatisfied default, high street rates are unlikely, but I see no reason why you would be pying extortionate rates - something around the 3% mark for the first couple of years until the defaults drop off.

I have no idea what that would equate to monthly but on a mortgage of say £125k over 25 years, it would be around £600 a month.

http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml - put in the amount you want to borrow and how many years and an interest rate of 3% and it should give you an idea.

Dollydaydreama

Hi have you tried a bank like Aldermore? They specialise in the cases high street lenders are not interested in, our mortgage is with them and we have been very happy so far.

Lilla_D

Dollydaydreama wrote: »

Hi have you tried a bank like Aldermore? They specialise in the cases high street lenders are not interested in, our mortgage is with them and we have been very happy so far.

Hi, you may like Aldermore and they may have been a suitable lender for you, but it's not the right advice to give on every thread that they should try Aldermore. The couple with the 5% deposit and short self-employed history couldn't use Aldermore, as they need min 2yrs self-employment over 85% LTV, while here the problem is that Aldermore requires no CCJs to be registered within the last 3 years.

Net, please stop giving random advice to people, as getting a suitable lender is a bit more complex than having adverse history = try Aldermore.

tessieboo123

Hi there, we don't have CCJs. Do they not accept defaults either?

System

If you really can't buy, invest instead to keep up with house prices. A popular one is Vanguard lifestrategy funds, probably a lot cheaper than what your bank would offer you, but you'd need a s&s ISA for it

AnotherJoe

MatthewAinsworth wrote: »

If you really can't buy, invest instead to keep up with house prices. A popular one is Vanguard lifestrategy funds, probably a lot cheaper than what your bank would offer you, but you'd need a s&s ISA for it

That "advice " is so bad it falls into the "not even wrong" category.

Lilla_D

tessieboo123 wrote: »

Hi there, we don't have CCJs. Do they not accept defaults either?

Up to 80% LTV they accept 1 settled default with max £300 value. If your second default comes off and the remaining one is below £300, then you could possibly qualify for them. I'm saying "possibly", as there are loads more details that will have to be considered, so please follow ACG's advice and speak to another broker.

ACG

Ignore the person who has said Aldermore. No offence intended to them, but you can not be suggesting lenders with so little information.

Aside from that, Aldermore 12-18 months ago probably would have been a good shout. Since then however, the market has changed, new lenders and Aldermore would probably be overkill.