Mortgages for bad credit and poor affordability

DebtbustingDiva

Hi there

We’ve just been turned down by L&C for a remortgage this month having previously been accepted (probably due to a £5k paycut as I had to change my working hours).

We’ve tried Climb who initially said no problem but the affordability doesn’t add up. We are, using the calculators on the cusp with high debt repayments (the remortgage will include debt consolidation) for affordability but not that unattractive with a low LTV and one default that has served nearly 3 years.

Can see Pepper, Aldergate and Clydesdale are all orgs that people have approached before, any others that may consider us? Or a broker who is good?

Thanks

Sally

[Deleted User]

You can't have been 'turned down' by l&c. They aren't a lender. What's probably happened is that they have give up on you as it's not worth their time to do difficult cases.

The makeup of the case sounds OK on the face of it. If you are meeting affordability for those lenders, you will meet for a lot others. And 1 3 year default is generally acceptable to a lot of lenders.

I would just ask on Facebook or something for a local independent broker and get in touch. They may charge a few hundred pounds but your life will be a lot easier than dealing with the big free lenders

ACG

WHo is your current lender?
Could you not stick with them for your mortgage and maybe do a secured loan for the extra?

You may find that is cheaper than moving everything to a specialist lender... and easier/quicker.

I think you need to find a broker to look at all of your options.

DebtbustingDiva

Thanks, Climb was the broker that dealwith Kensington retention mortgages and that’s who i have a mortgage with at present.

So, suggestion is that a local broker recommended by other people is the best approach? Even though it was the affordability criteria that L&C and Climb said we didn’t meet?

haras_nosirrah

On here there are a lot of brokers who give their time to help people.
Why not read through the boards here and see if there is anyone who stands out to you as giving people good advice. You are allowed to approach a broker on here, we just can't approach you.

The default isn't too much of a problem, there are lenders that are still ok with debt consolidation. The main crux is going to be the affordability from the sound of it and the brokers on here have access to the most generous lenders affordability calculators and can help you.