Bad credit lenders

cee_101

Hi all.
I have a satisfied default for £1700. Registered on my account in 2018 and satisfied February 2020.
I have first refusal on a new build plot which is due to be released in the spring. I know that I can get a mortgage from a specialist lender. I will be using help to buy and also putting a 15% deposit down. I have no outstanding credit commitments other than a phone bill. 

My question is really does anyone have any experience of who the best lenders are? Lenders that are easy to deal with and don’t have you jumping through hoops constantly. 

I’m a first time buyer and just would love peoples opinions and experiences if similar and what lenders required from you.

thank you so much ☺️

RelievedSheff

We went through a broker who got us our current mortgage on a then new build through Kensington. The Kensington new build team were great and got us our mortgage offer within two weeks of the full application going in.

Yes their rates are on the high side but we secured the home that we wanted. Our 2 year fixed rate is ending in the next few months and we have now managed to get a mortgage offer with a high street lender at high street rates which is good. Kensington have been a great short term stepping stone for us to get onto high street rates.

cee_101

RelievedSheff said:

We went through a broker who got us our current mortgage on a then new build through Kensington. The Kensington new build team were great and got us our mortgage offer within two weeks of the full application going in.

Yes their rates are on the high side but we secured the home that we wanted. Our 2 year fixed rate is ending in the next few months and we have now managed to get a mortgage offer with a high street lender at high street rates which is good. Kensington have been a great short term stepping stone for us to get onto high street rates.

What were they like with requesting documents and querying things on statements? I have read from people saying specialist lenders are a lot more in depth at the underwriting stage and query transactions for £15.
It has put me off wanting to spend money until the application goes in 😂 

thank you ☺️

Amy32

We are in the process of purchasing a house with a specialist lender. We initially applied with Vida - now I am sure some people will have success stories however our experience was negative. When we applied their SLAs were 11 working days ... each day they would increase them and we didn’t hear back until 12-14 weeks and it was declined. The reason could of been fed back to us when we submitted application and shouldn’t of taken 3 months to find out. They also were making us jump through hoops with constant demands for things we had already sent. We have since applied with Aldermore. We are yet to hear back but our experience so far has been so much better. We submitted it about 3 weeks ago, credit checks have been completed, valuation has been done, and they came back with one query yesterday regarding the valuation. We are hoping for a decision this week. 

cee_101

Amy32 said:

We are in the process of purchasing a house with a specialist lender. We initially applied with Vida - now I am sure some people will have success stories however our experience was negative. When we applied their SLAs were 11 working days ... each day they would increase them and we didn’t hear back until 12-14 weeks and it was declined. The reason could of been fed back to us when we submitted application and shouldn’t of taken 3 months to find out. They also were making us jump through hoops with constant demands for things we had already sent. We have since applied with Aldermore. We are yet to hear back but our experience so far has been so much better. We submitted it about 3 weeks ago, credit checks have been completed, valuation has been done, and they came back with one query yesterday regarding the valuation. We are hoping for a decision this week. 

Funnily enough I was just looking at aldermore but I am not if my default value was to high for them to accept and I know they stopped help to buy during COVID. Not sure if they are back up and running with it now though. I’m glad they have been better and it is definitely good to know. I dread having to send bank statement after bank statement and answering questions on small transactions especially with new build timeframes. 

I hope it all goes well for you 🤞🏻

Amy32

cee_101 said:

Amy32 said:

We are in the process of purchasing a house with a specialist lender. We initially applied with Vida - now I am sure some people will have success stories however our experience was negative. When we applied their SLAs were 11 working days ... each day they would increase them and we didn’t hear back until 12-14 weeks and it was declined. The reason could of been fed back to us when we submitted application and shouldn’t of taken 3 months to find out. They also were making us jump through hoops with constant demands for things we had already sent. We have since applied with Aldermore. We are yet to hear back but our experience so far has been so much better. We submitted it about 3 weeks ago, credit checks have been completed, valuation has been done, and they came back with one query yesterday regarding the valuation. We are hoping for a decision this week. 

Funnily enough I was just looking at aldermore but I am not if my default value was to high for them to accept and I know they stopped help to buy during COVID. Not sure if they are back up and running with it now though. I’m glad they have been better and it is definitely good to know. I dread having to send bank statement after bank statement and answering questions on small transactions especially with new build timeframes. 

I hope it all goes well for you 🤞🏻

We applied using help to buy. They apparently started offering them again in December which is why we couldn’t use them when we initially applied for our mortgage in October. 

We are buying a new build, and although they state they have tight timeframes in terms of exchanging within 28 days, ours have been really flexible! Our house has been completed and ready to move in to since November so they have been super patient. 

Amy32

Also they did ask us about once transaction on our statement which was for our local garage. But it was an understandable question as the name was the same as a well known creditor! 

MovingForwards

I'm with a specialist lender, my broker has dealt with them a lot so knee what to obtain from me in advance of applying for the DIP and subsequent mortgage application.

My application went through fine, had to clarify a few things, but aside from that it was all in my brokers hands.

Main thing I would suggest is getting the right broker, one you get on well with and you're not afraid to email / phone and say I don't understand, or can you explain, why do they want and any other questions which pop in your head.

For me it was about getting my home, I didn't care who the lender was or what the rate was. 

RelievedSheff

cee_101 said:

RelievedSheff said:

We went through a broker who got us our current mortgage on a then new build through Kensington. The Kensington new build team were great and got us our mortgage offer within two weeks of the full application going in.

Yes their rates are on the high side but we secured the home that we wanted. Our 2 year fixed rate is ending in the next few months and we have now managed to get a mortgage offer with a high street lender at high street rates which is good. Kensington have been a great short term stepping stone for us to get onto high street rates.

What were they like with requesting documents and querying things on statements? I have read from people saying specialist lenders are a lot more in depth at the underwriting stage and query transactions for £15.
It has put me off wanting to spend money until the application goes in 😂 

thank you ☺️

They were really not bad at all. We had a couple of queries on bank statements which were easily answered but not much else.

[Deleted User]

With 1 default 3 years old and a big deposit its quite likely you will be looking at mainstream lenders.  
Subject to the rest of the case of course but 1 3yr old default is probably high street.   You'll be best with a broker to navigate but if you get one who charges on offer and a lender doing free vals you could be getting an offer with no up front fees at all

K_S

@cee_101 I'll echo what JMA has said above, based on the limited info you've shared, it doesn't look like adverse territory. That's assuming there aren't any other nasties in the background.