FTB with adverse credit. Too good to be true?!

BraLo

Hello all, I’m looking for some advice from those more experienced in this area.

My partner and I had pretty much resigned ourselves to never having a proper home for our family. We have approx £13000 left to pay in a DMP (started in April 2012). I personally have had no CCJs and my most recent default was just over five and a half years ago. I have some missed payments with Vodafone when I was in dispute with them for 9 months. As soon as they removed the extra charges from my bill (to the tune of £2500) I paid it in full. That was 14 months ago and I’ve not missed a payment since.

My partner is in the DMP with me although none of our finances are officially joint. He has a CCJ from an unpaid water bill from an old address two years ago which is paid monthly as part of the DMP. Beside that, his most recent default was almost 6 years ago.

We haven’t taken on any more debt in the six years, we don’t have credit cards or overdrafts. Our combined income is £42000 minimum. I am a teacher and my wage increases approx £2500 per annum, I’m also an examiner at an exam board and earn £1500 from that. Our only additional income is child benefit.

Two relatives have gifted us £8000 (total). We went to a FTB event so that we could get an idea of timescales and the amount of money we need to save to improve our chances of getting a mortgage in a couple of years and were very surprised to hear that they fancied our chances now. The property we like is £215000 new build. They have offered us an additional 5% builders deposit. They did some sort of check which I believe to be with Precise or Aldermore and said we can get a rate of 4.88% I’m fully aware that is shockingly bad but we’ve paid £100000 in rent over 12 years. Affordability is fine.

Is it a bad idea to go for this? My head is battered, the mortgage will be £767 per month at that rate but it’s only for two years by which time we’ll be in a far better position.

Any advice appreciated!

juniordoc

It sounds like it would be worth seeing a broker as I imagine it wouldn't be too hard to get a better rate than that. Are you on the electoral roll? And have you got Help to buy ISAs?

amnblog

You need this checked by a broker who knows what they are doing.

The 4.88% rate requires a 15% deposit which you do not appear to have. Also the credit profile does not fit for Lending above 85% with the Lenders you mention.

downhillfast

I am NOT a mortgage advisor but me (ex bankrupt) and wife (is a teacher) got a lower rate than that last year through Teachers Building Society - they only lend to teaching sector or local to them (Bournemouth area I think) applicants. Might be worth checking them out yourselves or through a broker.

Vodafone

BraLo wrote: »

Hello all, I’m looking for some advice from those more experienced in this area.

I have some missed payments with Vodafone when I was in dispute with them for 9 months. As soon as they removed the extra charges from my bill (to the tune of £2500) I paid it in full. That was 14 months ago and I’ve not missed a payment since.

Any advice appreciated!

Hi BraLo,

Thanks for making me aware of this.

If you'd like me to look into the late payments that we've recorded against your credit report, please email me via the form here.

To access the form you'll need to enter the code WRT135.

As well as stating your query in the question box, please also quote "MSE Forum".

Once sent, you'll receive an automated reply with a reference number. Post it on here and I'll check that I've received it.

Kind regards,

Lee

Vodafone Social Media

BraLo

juniordoc wrote: »

It sounds like it would be worth seeing a broker as I imagine it wouldn't be too hard to get a better rate than that. Are you on the electoral roll? And have you got Help to buy ISAs?

Yes, we are both on the electoral roll. We have opened HTB ISAs today and have deposited £1200 in each on opening.

BraLo

amnblog wrote: »

You need this checked by a broker who knows what they are doing.

The 4.88% rate requires a 15% deposit which you do not appear to have. Also the credit profile does not fit for Lending above 85% with the Lenders you mention.

I see, I had a quick look at the criteria online and we seemed to fit the bill but I have absolutely no experience/idea of what I’m talking about. How do I go about finding a decent broker?

BraLo

downhillfast wrote: »

I am NOT a mortgage advisor but me (ex bankrupt) and wife (is a teacher) got a lower rate than that last year through Teachers Building Society - they only lend to teaching sector or local to them (Bournemouth area I think) applicants. Might be worth checking them out yourselves or through a broker.

Thank you, that’s definitely something I’ll consider!

Kaggs!

We have also gave up with getting a mortgage and renting forever... but in the last 5 months we!!!8217;ve really tightened the purse strings!! And managed to save £6k towards a deposit fo a mortgage... we have just paid deposit on a new build, through advice off mortgage broker... after receiving a mortgage in principal.... I!!!8217;m just really anxious and worried as we have a few defaults... and have had pay day loans(very stupidly thought that would help our credit rating)!! Any advice would be greatly appreciated....