Best bad credit mortgage brokers

goldhair86

I have previously written another post about my current situation. To cut a long story short both me and my partner are looking to buy our first home through Help To Buy. The houses are not available until sometime probably mid next year so we still have time. Problem is, his credit - three defaults, one from December last year and two from this year. All paid off but still a problem, me on the other hand I have a perfect credit score. I know we are going to struggle to get a mortgage but I also know it’s not impossible especially if we get a decent Broker to help us out. Furthermore, what sort of fees am I looking at? I know they’re expensive but I’m willing to pay if it means we finally own our home place. Please help.

Slithery

goldhair86 said:

I have previously written another post about my current situation.

Then please continue the discussion in that thread. Duplicating the same question is a waste of everyone's time.

goldhair86

Slithery said:

goldhair86 said:

I have previously written another post about my current situation.

Then please continue the discussion in that thread. Duplicating the same question is a waste of everyone's time.

I’m not duplicating the same discussion. I’m asking for recommendations. If you dont have anything recommendations then don’t waste your time replying 

MovingForwards

If you like the broker you've already made enquiries with, why not stick with her?

Adverse lenders are a lot more expensive, their APRs are always higher. You've already said you can't afford what you were told.

Based on figures mentioned in posts for various specialist brokers it could be up to £4k just for their fees. Then mortgage arrangement fees are about £1.5k on top of that there's the legal fees and you need your deposit. 

Two brokers replied to your other thread. There are a couple of other brokers who reply to threads.

The broker I used, who specialises in adverse credit mortgage applications, doesn't deal with H2B but suggests someone else who does.

You may want to find the Bluestone thread as various brokers are used and costs are discussed.

Alternatively, buy on your own and remortgage, adding your OH when their financial history looks better.

AdrianC

goldhair86 said:

Problem is, his credit - three defaults, one from December last year and two from this year. All paid off but still a problem

Three defaults within the last twelve months.

There's poor historical credit which has been learned from, and there's actively currently having no clue about money management...

Tiglet2

Your cousin is a mortgage broker and seems to have given you sound advice.  I'm not sure that any other broker will tell you anything more favourable.

Your pool of lenders will be very small and very expensive due to the three defaults in the last year.  If you want a mortgage from a mainstream lender with lower interest rates and lower admin fees, then you should probably hold off trying to get on the property ladder for a couple of years at least.

goldhair86

AdrianC said:

goldhair86 said:

Problem is, his credit - three defaults, one from December last year and two from this year. All paid off but still a problem

Three defaults within the last twelve months.

There's poor historical credit which has been learned from, and there's actively currently having no clue about money management...

Thanks for your unhelpful input. Actually the defaults came from working 14 hour shifts the entire way through covid without hardly anytime off and a near breakdown. So before you judge, perhaps get the facts first. Take your opinions elsewhere. 

AdrianC

goldhair86 said:

AdrianC said:

goldhair86 said:

Problem is, his credit - three defaults, one from December last year and two from this year. All paid off but still a problem

Three defaults within the last twelve months.

There's poor historical credit which has been learned from, and there's actively currently having no clue about money management...

Thanks for your unhelpful input. Actually the defaults came from working 14 hour shifts the entire way through covid without hardly anytime off and a near breakdown. So before you judge, perhaps get the facts first. Take your opinions elsewhere. 

Good luck on persuading lenders of that. THAT is your challenge, because that is exactly how they will perceive it. It is their opinion and judgement that matters.

You are asking somebody to lend a vast amount of money to somebody who has demonstrated repeatedly in the last year that they cannot repay far smaller amounts. Would you take that risk on? If you did, what would you charge to do so?

csgohan4

goldhair86 said:

AdrianC said:

goldhair86 said:

Problem is, his credit - three defaults, one from December last year and two from this year. All paid off but still a problem

Three defaults within the last twelve months.

There's poor historical credit which has been learned from, and there's actively currently having no clue about money management...

Thanks for your unhelpful input. Actually the defaults came from working 14 hour shifts the entire way through covid without hardly anytime off and a near breakdown. So before you judge, perhaps get the facts first. Take your opinions elsewhere. 

OP, lenders do not judge, they deal with cold hard facts, your defaults are not 2 years or 6 years old, they are within 1 year old. Your pool of lenders are going to be extremely small. Adverse credit brokers are not cheap, around 1k mark. 

Lenders will go on your credit history and how you manage money which it seems is not great, regardless of how they were obtained, which the bank will not care one bit.

We've had people who got defaults as they forgot due to family bereavement. They are treated the same. Lenders lend based on risk. If you have a negative history it will be treated as such. There is no ifs and or buts in a highly regulated mortgage industry now. You are not lending from your friend who may be more sympathetic. 

 I wish you luck, but having a bite at the forum users here will also reduce your pool of people responding. This forum does not always give you what you want to hear, but reality.

I can see you have already got some good advice in your previous thread, but bear in mind one of the posters who got a mortgage has had less defaults than you and more than 2 years old. 

Do bare in mind lender's criteria can and will change. We've seen over the last 18 months, lenders have stricter criteria, so people's past experience may not be accurate of what may transpire now

AFF8879

OP, could you raise a mortgage on your own salary? It might be better doing that, even if you have to settle for a smaller place (let’s face it, very few people get the forever family home as a FTB).

Then, when it’s time to move to a bigger place in 5-10 years time, your partner will have been able to clear up his credit history and getting a joint mortgage should be a lot easier/cheaper than it would be within the next year or two. Plus, you’ll get a head start on building some equity vs if you continued renting.

goldhair86

AFF8879 said:

OP, could you raise a mortgage on your own salary? It might be better doing that, even if you have to settle for a smaller place (let’s face it, very few people get the forever family home as a FTB).

Then, when it’s time to move to a bigger place in 5-10 years time, your partner will have been able to clear up his credit history and getting a joint mortgage should be a lot easier/cheaper than it would be within the next year or two. Plus, you’ll get a head start on building some equity vs if you continued renting.

Yeah, I did think about this but the area I live and even outside of my area, I wouldn’t be able to do it on my own salary annoyingly. The only other option I would have would be to do part buy part rent and I’ve been told this isn’t a great scheme to get on to.