Mortgages and Payday loans

Sophie8916

Hello,

Looking for some advice, I'm currently selling my property for numerous reasons, when its completed and exchanged ill have £45k ish in my bank which will be lovely!

Slight issue and looking for advice as every broker I speak to says something different.

Im not proud of the fact I had a clinical breakdown this year following a bereavement, and as such I took out alot of short terms loans which, will all be cleared when my property is sold. My Partner also had an IVA which was registered in 2015 but discharged in 2019.

Any positive/success stories of obtaining a mortgage with a not so scary deposit recently and similar circumstances to us as above?

** no judgemental/nasty comments please**

Thrugelmir

Speak to your existing lender. If you are downsizing and intending to borrow less. Then they may well help you. Lenders have a duty of care now. Borrowers looking to improve/resolve their personal financial circumstances falls into this category. If you wish to leave the past behind. Be positive, open and transparent. 

Sophie8916

Thrugelmir said:

Speak to your existing lender. If you are downsizing and intending to borrow less. Then they may well help you. Lenders have a duty of care now. Borrowers looking to improve/resolve their personal financial circumstances falls into this category. If you wish to leave the past behind. Be positive, open and transparent. 

Thanks, I tried this but Halifax arnt happy as my partner had an Iva settled in 2019 so won’t lend to us, they’ve said they never will because of his IVA which is a shame 

Thrugelmir

Sophie8916 said:

Thrugelmir said:

Speak to your existing lender. If you are downsizing and intending to borrow less. Then they may well help you. Lenders have a duty of care now. Borrowers looking to improve/resolve their personal financial circumstances falls into this category. If you wish to leave the past behind. Be positive, open and transparent. 

Thanks, I tried this but Halifax arnt happy as my partner had an Iva settled in 2019 so won’t lend to us, they’ve said they never will because of his IVA which is a shame 

Then a broker is your route forward. Let them do the leg work. 

ACG

I think you are going to struggle with this.
Pay day loans, you generally need 12 months without any. This is to show you have broken the cycle of pay day loans.

IVA, generally speaking you need 3 years discharged. There are a few lenders who will consider it sooner or work off the registration date. If the IVA involved those lenders who work from the registration date and/or any of the adverse still shows, you are probably going to struggle. 

Personally, I think the 2 things combined you are going to need a large deposit (25% plus) and rates are going to be a bit rubbish. Although I am making a few assumptions so could be wrong.

If you go with a broker, I would suggest going with one who charges no upfront fees for your own benefit more than anything. 

Sophie8916

ACG said:

I think you are going to struggle with this.
Pay day loans, you generally need 12 months without any. This is to show you have broken the cycle of pay day loans.

IVA, generally speaking you need 3 years discharged. There are a few lenders who will consider it sooner or work off the registration date. If the IVA involved those lenders who work from the registration date and/or any of the adverse still shows, you are probably going to struggle. 

Personally, I think the 2 things combined you are going to need a large deposit (25% plus) and rates are going to be a bit rubbish. Although I am making a few assumptions so could be wrong.

If you go with a broker, I would suggest going with one who charges no upfront fees for your own benefit more than anything. 

Thanks I’ve spoken to a broker and it appears bluestone are our best bet as their only policy is “cleared before application” therefore think we will have to take a hit with a high apr for 2-5 years but that’s fine 

jimjames

Just a thought, could you stay with your existing mortgage until the IVA is cleared? That then means you will be able to do a standard application and have more choices available. That might not be possible but it would help the future application

Sophie8916

UPDATES FOR YOU!

Firstly, thanks so much... wish I came across this community sooner as you are all so helpful.

Steps made..

Spoken to a few brokers on here, and the general consensus is that all is not lost! I have a plan in place to clear EVERYTHING with the sale of my property which will leave me with £20k which will be going somewhere I cannot touch it.

Since, I have spoken with the payday loan providers which I've taken out and they have been amazing and all (so far) agreed to wipe off my credit file as a "gesture of good will"... but been told I need to allow a month for this.

I have signed up to alot of the survey sites on here and I have also signed up for a few DFW "challenges " so feeling very positive and confident.

I have also spoken to EE and been honest about wanting a better deal and have HALVED my monthly bill just for being a loyal customer... I shall do the same with Sky tomorow.

Now, because of this my dream of buying a house with my boyfriend next year is looking brighter! however, I will continue to save for the next 6 months to make that a strong reality!

JamieJ89

Sounds really positive, well done 👍🏼 

LaHostessAvecLaMostess

AngelaDavies said:

I've had relative peace of mind since I just got a mortgage and had no prior obligations to the banks. However, I would advise you not to trust a bank if they tell you that you won't cover the debt even if you pay for 5-10 years. I know plenty of people who have been able to do this. Also, don't rely too much on your "small payment." All you really need is a credit history to show you that your debt will not become a "rolling stone." But you can always look into reverse mortgage qualifications to pay off the loan later.

No, you need to meet the banks criteria, regardless of how silly they may seem