Mortgage with default PLUS restrictive covenant?

EctoBradders

My father died last year and I received some inheritance which I want to put towards buying a house. The house I want to buy is the house I've been renting privately for the past 4.5 years, it has an s157 local restrictive covenant on it. My husband and I both have defaults on our credit files. These two things combined are making finding a mortgage lender very difficult, if they will accept the default they won't accept the covenant and vice versa. Does anyone have any experience/advice??

K_S

@ectobradders If it's a local occupancy restriction, it shouldn't be a huge barrier on its own. As you say, the complication is probably due to that plus the defaults. Have you tried a broker at all or have you been going lender to lender?

EctoBradders

K_S said:

@ectobradders If it's a local occupancy restriction, it shouldn't be a huge barrier on its own. As you say, the complication is probably due to that plus the defaults. Have you tried a broker at all or have you been going lender to lender?

I have a broker but she's not having any luck. I think it might be dead in the water tbh but I was hoping someone else had been through the same with some success :-(

K_S

EctoBradders said:

K_S said:

@ectobradders If it's a local occupancy restriction, it shouldn't be a huge barrier on its own. As you say, the complication is probably due to that plus the defaults. Have you tried a broker at all or have you been going lender to lender?

I have a broker but she's not having any luck. I think it might be dead in the water tbh but I was hoping someone else had been through the same with some success :-(

@ectobradders Out of interest, how many defaults are we talking about and what LTV are you looking to achieve?

EctoBradders

K_S said:

EctoBradders said:

K_S said:

@ectobradders If it's a local occupancy restriction, it shouldn't be a huge barrier on its own. As you say, the complication is probably due to that plus the defaults. Have you tried a broker at all or have you been going lender to lender?

I have a broker but she's not having any luck. I think it might be dead in the water tbh but I was hoping someone else had been through the same with some success :-(

@ectobradders Out of interest, how many defaults are we talking about and what LTV are you looking to achieve?

I have two defaults from 2017 and my husband has one from 2019 (i think.) We'd be looking to borrow £130k on a £195k property but we can put in significantly more cash if that would help our case

K_S

EctoBradders said:

K_S said:

EctoBradders said:

K_S said:

@ectobradders If it's a local occupancy restriction, it shouldn't be a huge barrier on its own. As you say, the complication is probably due to that plus the defaults. Have you tried a broker at all or have you been going lender to lender?

I have a broker but she's not having any luck. I think it might be dead in the water tbh but I was hoping someone else had been through the same with some success :-(

@ectobradders Out of interest, how many defaults are we talking about and what LTV are you looking to achieve?

I have two defaults from 2017 and my husband has one from 2019 (i think.) We'd be looking to borrow £130k on a £195k property but we can put in significantly more cash if that would help our case

@ectobradders At <70% LTV (and the potential to lower it further), I'm guessing there's something else in the background (historic mortgage reposession, bankruptcy, anything like that, hope you don't mind me asking!) which is causing an issue. Or the specifics of the s157 restriction. Is it just a local occupancy restriction (purchaser must have lived/worked in the local area for the last X years) or is there anything else attached to it like a discount, etc? And is the broker one of the high-volume types or someone who has the time to properly research the case, call lenders, etc? Have they had any luck at all - say a lender coming back saying they may consider it at a lower LTV or something?

EctoBradders

K_S said:

EctoBradders said:

K_S said:

EctoBradders said:

K_S said:

@ectobradders If it's a local occupancy restriction, it shouldn't be a huge barrier on its own. As you say, the complication is probably due to that plus the defaults. Have you tried a broker at all or have you been going lender to lender?

I have a broker but she's not having any luck. I think it might be dead in the water tbh but I was hoping someone else had been through the same with some success :-(

@ectobradders Out of interest, how many defaults are we talking about and what LTV are you looking to achieve?

I have two defaults from 2017 and my husband has one from 2019 (i think.) We'd be looking to borrow £130k on a £195k property but we can put in significantly more cash if that would help our case

@ectobradders At <70% LTV (and the potential to lower it further), I'm guessing there's something else in the background (historic mortgage reposession, bankruptcy, anything like that, hope you don't mind me asking!) which is causing an issue. Or the specifics of the s157 restriction. Is it just a local occupancy restriction (purchaser must have lived/worked in the local area for the last X years) or is there anything else attached to it like a discount, etc? And is the broker one of the high-volume types or someone who has the time to properly research the case, call lenders, etc? Have they had any luck at all - say a lender coming back saying they may consider it at a lower LTV or something?

Nothing else historically, (I don't mind you asking!), and yes have to have lived or worked in the area for 3 years, which we have. Our broker has said she has called around 10 lenders who would lend to us with the defaults, but not with the covenant. She says the larger high street lenders will lend with the covenant, but not the default! Do you think approaching another broker could be a good idea?

K_S

EctoBradders said:

K_S said:

EctoBradders said:

K_S said:

EctoBradders said:

K_S said:

@ectobradders If it's a local occupancy restriction, it shouldn't be a huge barrier on its own. As you say, the complication is probably due to that plus the defaults. Have you tried a broker at all or have you been going lender to lender?

I have a broker but she's not having any luck. I think it might be dead in the water tbh but I was hoping someone else had been through the same with some success :-(

@ectobradders Out of interest, how many defaults are we talking about and what LTV are you looking to achieve?

I have two defaults from 2017 and my husband has one from 2019 (i think.) We'd be looking to borrow £130k on a £195k property but we can put in significantly more cash if that would help our case

@ectobradders At <70% LTV (and the potential to lower it further), I'm guessing there's something else in the background (historic mortgage reposession, bankruptcy, anything like that, hope you don't mind me asking!) which is causing an issue. Or the specifics of the s157 restriction. Is it just a local occupancy restriction (purchaser must have lived/worked in the local area for the last X years) or is there anything else attached to it like a discount, etc? And is the broker one of the high-volume types or someone who has the time to properly research the case, call lenders, etc? Have they had any luck at all - say a lender coming back saying they may consider it at a lower LTV or something?

Nothing else historically, (I don't mind you asking!), and yes have to have lived or worked in the area for 3 years, which we have. Our broker has said she has called around 10 lenders who would lend to us with the defaults, but not with the covenant. She says the larger high street lenders will lend with the covenant, but not the default! Do you think approaching another broker could be a good idea?

@ectobradders I don't want to second guess your current broker. But for a case like this, she should be able to tell you whether she can do it or not in 3-4 days time at most. If not, then I would definitely recommend getting an opinion from one more broker before giving up because (based on the limited info in this thread) it just doesn't come across as an unplaceable case unless you're only looking for high-street/chart-topping rates.

[Deleted User]

I can sense KS holding back the confusion on why this cant be placed.   If its a straightforward local occupancy restriction and lowish ltv then there are high street lenders who will consider subject to credit scoring.
I know of 1 regional building society that eats these up and doesn't even credit score applications.  They'd restrict to 70% ltv due to adverse but that doesnt seem to be an issue

2nd opinion definitely 

EctoBradders

Deleted_User said:

I can sense KS holding back the confusion on why this cant be placed.   If its a straightforward local occupancy restriction and lowish ltv then there are high street lenders who will consider subject to credit scoring.
I know of 1 regional building society that eats these up and doesn't even credit score applications.  They'd restrict to 70% ltv due to adverse but that doesnt seem to be an issue

2nd opinion definitely 

Thanks guys I will keep trying! Could I ask you for some names to try?