Struggling to get back on the property ladder…

Dancaw

Hi, 

Is there sort good period when mortgage lender consider lending again.  

36 and back my mothers and space is tight having my teenage daughters every weekend.. 

cut along story short. Finally got divorced in feb last year and the former family home was sold in September 2021. With equity to clear mortgage and restart a fresh, so it has enabled me to clear all my defaulted debts 6 in title however i had 3 month payment reduction plan with halifax over april may ,june last year. The they forgot to mention i would have to repair shortfall at the End of the plan. Which i could not afford but was cleared 2 months later when house was sold. 

However this showing up on my credit file as 3 consecutive 1 late payments. 

As finding it extremely difficult to find me mortgage lender.  Managed to get one offer but want 35% deposit and 7% interest rate ridiculous.. maximum 120k lending 

It means looking for house roughly 115k they don’t exist where i need to buy. 

I know defaults stay on file for 6 years,  but how long mortgage payments looked at considered? 

SuseOrm

I’m finding at the moment that lenders are extremely Conservative.  I have far fewer problems than you and 25% deposit to put down and borrowing quite a small amount too I’m really struggling.  

I’m kinda hoping that this is the gods saving me from myself because prices are levelling out at least and in some areas dropping by me

GDB2222

You got an offer of 35% deposit and 7% interest. You don’t say how much equity you have. Is the 35% a problem? I can see why you don’t want to pay the 7%.

Dancaw

I have £30k  left for a deposit so £16k short on a 160k house.. 

paid 7 years with out one missed payment. On mortgage. And due to slight hiccup and well paid job. Just struggling 

SuseOrm

I can’t decide whether to just pay the Flippen 7% and at least I’m slightly,  though not much better off than I am renting but then equally they have my deposit which is not a small amount of money and I made 9% on that in my isa last year.  

SuseOrm

I also wonder what happens at the end of the two year period if you pay 7% for a fixed term it could be out of the frying pan into the fire because of course interest rates may have gone up and then we just haven’t had the benefit of enjoying the low rates for the two years.   I guess at least that way it won’t be a major shock but what if they just say no you can’t remortgage.  That happened to us with the Alliance & Leicester 15 years ago and we got stuck on their standard variable rate for nearly 15 years,  they made an absolute fortune out of us.  

RelievedSheff

SuseOrm said:

I also wonder what happens at the end of the two year period if you pay 7% for a fixed term it could be out of the frying pan into the fire because of course interest rates may have gone up and then we just haven’t had the benefit of enjoying the low rates for the two years.   I guess at least that way it won’t be a major shock but what if they just say no you can’t remortgage.  That happened to us with the Alliance & Leicester 15 years ago and we got stuck on their standard variable rate for nearly 15 years,  they made an absolute fortune out of us.  

What stopped you remortgaging away from Alliance and Leicester?

Plenty of other mortgage lenders 🤔

london21

7% Interest is a lot but with your circumstances maybe consult a broker.

MovingForwards

What people tend to do is bite the bullet and take out the sub-prime mortgage, have a fixed rate for 2 - 5 years and remortgage away into mainstream lenders when credit history is more acceptable due to age of it or its no longer on the credit history. 

Get the property, move in and settle as a couple of years soon passes.

RelievedSheff

MovingForwards said:

What people tend to do is bite the bullet and take out the sub-prime mortgage, have a fixed rate for 2 - 5 years and remortgage away into mainstream lenders when credit history is more acceptable due to age of it or its no longer on the credit history. 

Get the property, move in and settle as a couple of years soon passes.

This is what we did. Took an adverse credit mortgage at a higher rate (5%) for two years to secure the property that we really wanted.

Two years on our credit history had improved enough to remortgage to a high Street lender at high Street rates despite still having a settled CCJ on my credit file.

We are now almost a year further on and it was absolutely the right decision for us. I can not imagine having spent the last 24 months or so in our previous house 🥺

SuseOrm

RelievedSheff said:

SuseOrm said:

I also wonder what happens at the end of the two year period if you pay 7% for a fixed term it could be out of the frying pan into the fire because of course interest rates may have gone up and then we just haven’t had the benefit of enjoying the low rates for the two years.   I guess at least that way it won’t be a major shock but what if they just say no you can’t remortgage.  That happened to us with the Alliance & Leicester 15 years ago and we got stuck on their standard variable rate for nearly 15 years,  they made an absolute fortune out of us.  

What stopped you remortgaging away from Alliance and Leicester?

Plenty of other mortgage lenders 🤔

We no longer qualified for our own mortgage,  it was a self cert,  4 times his salary.  When we went to re mortgaged they said no but upu can keep paying double everyone elses rates for as long as you loke