Old post - no longer relevant

walletmoths

This was posted by me, but it's no-longer relevant now.

Thrugelmir

Kensington primarily funds it's mortgages by borrowing on the wholesale money markets. In the main this will be overseas investors. No doubt they'll be asking for higher rates of interest to protect themselves against the level of defaults that may well occur in the months ahead. 

ACG

Kensington get money from different places to banks at the minute there is a bit of a shortage of funds. 
The market is completely different to December, Kensingtons competition has in the main pulled out, less competition, less places to raise money = higher rates. 

That being said, how old is your adverse? With a 60% deposit, we are getting a lot through at rates under 2.5% at the minute. 

Have you tried any other brokers?

walletmoths

I'm going to try another broker, yes - but I'm a bit dubious as to whether they can help. Our credit history is classed as 'poor' and we still have £10k of debts to pay off (currently on a DMP) - but Kensington agreed that it was OK for us to pay this off with the new mortgage. We still have 2 defaults though that are 3 years old - hence the poor rating.

walletmoths

Well, after searching around 6 other brokers in the last 2 days, nobody in the world will touch a person with a Debt Management Plan. Might as well have declared bankruptcy instead. A word of warning to all those with the DMP ball-and-chain

MovingForwards

Where are you finding these brokers and are they trying to place you with high street lenders? Which won't happen with a DMP, or having it settled on completion.

What's wrong with the Kensington one?

We all do is grab whatever mortgage is offered to us, then look to remortgage asap when we meet normal lenders criteria.

And by the way, going bankrupt would have been even worse long-term as several lenders won't touch someone who did, no matter how many years down the line it was.

RelievedSheff

We have been with Kensington for 14 months now and our rate is higher than they have offered you due to poor credit history. We just have another 10 months to go with Kensington and then we can remortgage to a high street lender with more normal rates as my adverse credit history will have dropped off my file.

Just look at is as a short term hop to secure the home that you want. That's what we did and the time is flying by. We will be looking to remortgage on high street rates next year and greatly reduce the term of our mortgage without massively increasing our monthly payment.

Thrugelmir

walletmoths said:

we still have £10k of debts to pay off (currently on a DMP) 

If you've the cash to move house why haven't you cleared the DMP earlier?  Lenders aren't keen on applicants who use DMP's effectively as an interest free loan. 

ACG

walletmoths said:

Well, after searching around 6 other brokers in the last 2 days, nobody in the world will touch a person with a Debt Management Plan. Might as well have declared bankruptcy instead. A word of warning to all those with the DMP ball-and-chain

Have you tried a broker which specialises in adverse? 
There are at least 3-4 lenders who will consider applicants in a DMP in the current market, in Feb there were more like 6-7.
I am not saying they will be any cheaper than Kensington, but they may be. 

(Just to add, this post isnt to tout for business, we are not taking on any new customers until the back end of next week, its just aimed at pointing you in the right direction). 

getmore4less

If you have sold proceed with the sale pay off your debts and look to buy a bit later with Zero debts and still a < 60% LTV
(unless this is a very cheap house you are looking at)

You downsized in 2016/2017 to make things cheaper,  why moving again so soon?