Best route for mortgage application - adverse history

gabby71

Hi

I am looking to get a mortgage, however have a satisfied ccj from 2015 (£35) and 3 defaults going back to 2014 and 2016 - all cleared 2/3 years ago - 2 were catalogue debts for £157 and the other for £85, lastly £1250 to the water authority.
I have been told no chance with a high street lender so should I approach a broker?
I am looking at a 70% mortgage on a homebuy property and have savings to cover the required 5% deposit of the full value of the house.
I have been told affordability won’t be a problem, it’s just the credit history I need help with.
Grateful for any advice 😊

kingstreet

gabby71 wrote: »

so should I approach a broker?

Always. Unless you can interpret lender criteria yourself.

ACG

I do not do equity loan mortgages so no experience with the home buy scheme but it is interesting to hear you have been told you cant get a normal mortgage. I would have expected there to be a chance.

I think you should find a good experienced broker personally.

[Deleted User]

I wouod be surprised if you were too far off the high street with this. As long as your overall credit profile is strong then there might be a few lenders at prime rates who do equity loans and are forgiving on historic adverse.

Who told you that you wouldn't be getting high street rates?

gabby71

Thanks everyone for taking the time to reply.
We have a financial advisor that comes into our workplace every few months to give advice on mortgages and savings etc, I told him about the credit issues and he said no high street lender would offer, he said the only option would be a specialist lender.
I have numerous other accounts that have been paid without defaults (5 year car finance now finished, 10 year mobile phone account, 2 credit cards with low balances etc) so my credit report does have some evidence in a positive light.
How do I find a mortgage advisor that I can trust to look at all my options? And if I am turned down by one lender will it impact my file so I can’t try again?

Many thanks

ACG

If you are turned down on the high street (which is possible, but still worth a shot), specialist lenders do not usually credit score, so even with a credit check and a declined application it should not impact the outcome of an application with them.

I think you just need to speak to a broker or 2, talk it through with them and see if you like and trust what they are saying.

If the person in your works is a financial advisor, they are not really a mortgage advisor and so their thing is more pensions and investments and not so much mortgages.

gabby71

Thank you 😊 I will contact a few mortgage advisors and see how I get on.

amnblog

We do adverse credit Help to Buy cases regularly and What you describe would have chance without needing to use a specialist lender.

The detail is the important factor here. A £1,250 default in December 2016 and £85 in February 2014, is very different from vice-versa. As is no issues since 2016 against a debt management plan since 2016.

The good news is that the credit history will not be a barrier to lending and even rates from an adverse lender are affordable on a H2B purchase.

Consult an experienced broker.