90% Mortgage with IVA and Historic Mortgage Defaults

whispy25

Hello
Any advice valued please. 

My husbands IVA is six years old this month.  It was settled 3 years ago in March. 

His ex wife and her husband failed the pay the mortgage in my husbands name over a 5 month rolling period.  The property was sold November 2019 and settled in full.  My husband is left with 2 defaults (14 months old) on his credit report.

Are there lenders out there offering 90% ltv mortgages under these circumstances?

Thanks

ACG

If the mortgage arrears are over 3 years old (it does not sound like they are?) then there is a lender I think may look at it. 
The adverse lenders are not at 90% LTV and never really were even before covid - there were adverse products at 90% but not really with mortgage arrears less than 6 months old. It sounds like you either need a larger deposit/cheaper property or give it some time. 

The vast majority of the work I do is adverse and I am not sure even if the good times before covid you would have got a 90% LTV mortgage. 

whispy25

Thank you for the advice.  The mortgage arrears rolled over for 5 months during 2019.  The house was sold and arrears settled in full Nov 2019.  At the time, part payments were agreed with the lender, although that seems to have made no difference to the impact these arrears have had on his credit report.

We are able to raise 20% deposit.  Would there be lenders willing to consider an application from us?

2020sombre

How are defaults viewed by adverse lenders when looking for a secured loan / equity release? 
I'm under 55, mortgage paid off with recent loan defaults, is the chance of a loan against the property 0%
 ACG said:

If the mortgage arrears are over 3 years old (it does not sound like they are?) then there is a lender I think may look at it. 
The adverse lenders are not at 90% LTV and never really were even before covid - there were adverse products at 90% but not really with mortgage arrears less than 6 months old. It sounds like you either need a larger deposit/cheaper property or give it some time. 

The vast majority of the work I do is adverse and I am not sure even if the good times before covid you would have got a 90% LTV mortgage. 

ACG

Adverse lenders do not credit score, they tend to work on criteria - you either fit or you dont. Some lenders say no adverse in the last 12 months and then more or less unlimited defaults there after, others may say none in the last 12 months but cap it at say 5 defaults in the last 3 years. 

They all vary. 

Also the LTV would be whatever it would be on completion of the new mortgage, so it would never be 0% LTV. 

whispy25

Previously you mentioned a 90% ltv not possible.  What about 80% ltv under our circumstances?

ACG

I have just seen you have made 3 posts all with different information.

You need to just put everything in one post together. I can answer questions on each thing individually, but combined it might give a totally different answer. 

2020sombre

ACG said:

Adverse lenders do not credit score, they tend to work on criteria - you either fit or you dont. Some lenders say no adverse in the last 12 months and then more or less unlimited defaults there after, others may say none in the last 12 months but cap it at say 5 defaults in the last 3 years. 

They all vary. 

Also the LTV would be whatever it would be on completion of the new mortgage, so it would never be 0% LTV. 

so if property is worth £100k and I wanted £30k released as a remortgage would I only get 70% LTV so £21k without putting up any of my money? 

whispy25

Hi ACG.... thank you for replying to me.  My situation, rolling it all together is:  I own my own house.  I do not want to sell because i want it as my pension.  I want to remortgage with a let to buy,  drawing out equity to take forward onto a new home to be owned jointly with my husband. 

I need to deal with my house first.  The first issue I hit is high debt to income rejection.

The second issue on our joint mortgage (if i manage to get my own ltb mortgage sorted) is finding a lender who will take into account the defaults on my husbands credit report.  You have already kindly answered my first post advising 90% ltv is not possible.  I then asked is 80% would be possible.

ACG

Have you thought about speaking to a broker? 

They can look into both applications for you, they will know everything and they will probably make it a lot easier for you as at the minute we can only tell you if the bits you tell us are possible to overcome - you then need to find out who the lenders may be so probably quicker and easier (and less stressful) just to dump it all on someones desk. 

whispy25

Yes I tried a broker because we have complicated applications.  I have paid for two applications.  The first on my ltb was with Accord.  A DIP was issued and he told me a valuer would be in touch.  After two weeks and no call from a valuer,  I kept calling and messaging him, he did not reply.  In the end I called the lender direct and they advised even though a DIP had been issued,  my application had since been declined due to debt to income ratio.  They advised that my FA had been told.  

This has left me disappointed and without trust....