Desperate help for a mortgage

conorM95

So me and my partner bought a house in 2020 (only in her name) as my credit report was shoddy at best. During 2017/2018 I got into some trouble and ended up with 3 defaults on my account. By 2020 I had sorted myself and paid them off in the hope that this would help me buy a house that year but to no avail. 

Now we have expanded our family and need to upsize, and it’s a necessity not a want to upsize. I have kept an eye on my credit report and looked after myself financially in order to put myself in a position to buy this year, I seemed advice and all seemed well. Due to the market at the moment, we started viewing houses and placing offers whilst sorting out a AIP. By a stroke of luck we managed to get an offer accepted on a house in the town we wanted. We also sold our house quickly as well. There’s an entry date of end of October. 

The house cost me £195000 with a value of 190000

Now here comes the problem, the best mortgage offer I have got is at 6.8% interest and a monthly payment of over £1100 at 35 years. This isn’t sustainable or even achievable. The other reason for moving was so I can gain a second job and boost my income by an additional £750 a month, but I have to live in that town in order to get it. I work full time on a half decent salary. But that monthly amount is ludicrous. 

I’m in dire need of advice of where I can go and speak to in order to get a respectable rate. 

I have been to mortgage brokers. What I really need is someone in a high street lender that can look at my circumstances and press a button that overrides the system and lets me get a normal mortgage. 

Also in 1.5 years, I will be gaining an additional 8k pay rise that’s guaranteed. So when that happens I could readjust my mortgage if necessary. Right now I need the monthly at the very most of £900 a month. 

Any help would be great. Thank you

K_S

@conorM95 If you have spoken to multiple experienced whole of market brokers who know adverse, and the recommended product is the most cost-effective that they have put forward, then that's probably the best option you have.

If you've only spoken to a couple of volume brokers (like L&C, Trussle, etc.) then there may well be other options such as smaller building societies that may offer you better rates. Good brokers that do adverse don't just place clients with adverse lenders, if a high-street lender may lend, they will look at that option as well.

This hope is unlikely to be practical "....someone in a high street lender that can look at my circumstances and press a button that overrides the system and lets me get a normal mortgage.", unfortunately that's not how it usually works.

A good broker that does their job well is probably your best shot at getting the "best" rate available to you today. 

conorM95 said:

So me and my partner bought a house in 2020 (only in her name) as my credit report was shoddy at best. During 2017/2018 I got into some trouble and ended up with 3 defaults on my account. By 2020 I had sorted myself and paid them off in the hope that this would help me buy a house that year but to no avail. 

Now we have expanded our family and need to upsize, and it’s a necessity not a want to upsize. I have kept an eye on my credit report and looked after myself financially in order to put myself in a position to buy this year, I seemed advice and all seemed well. Due to the market at the moment, we started viewing houses and placing offers whilst sorting out a AIP. By a stroke of luck we managed to get an offer accepted on a house in the town we wanted. We also sold our house quickly as well. There’s an entry date of end of October. 

The house cost me £195000 with a value of 190000

Now here comes the problem, the best mortgage offer I have got is at 6.8% interest and a monthly payment of over £1100 at 35 years. This isn’t sustainable or even achievable. The other reason for moving was so I can gain a second job and boost my income by an additional £750 a month, but I have to live in that town in order to get it. I work full time on a half decent salary. But that monthly amount is ludicrous. 

I’m in dire need of advice of where I can go and speak to in order to get a respectable rate. 

I have been to mortgage brokers. What I really need is someone in a high street lender that can look at my circumstances and press a button that overrides the system and lets me get a normal mortgage. 

Also in 1.5 years, I will be gaining an additional 8k pay rise that’s guaranteed. So when that happens I could readjust my mortgage if necessary. Right now I need the monthly at the very most of £900 a month. 

Any help would be great. Thank you

london21

conorM95 said:

So me and my partner bought a house in 2020 (only in her name) as my credit report was shoddy at best. During 2017/2018 I got into some trouble and ended up with 3 defaults on my account. By 2020 I had sorted myself and paid them off in the hope that this would help me buy a house that year but to no avail. 

Now we have expanded our family and need to upsize, and it’s a necessity not a want to upsize. I have kept an eye on my credit report and looked after myself financially in order to put myself in a position to buy this year, I seemed advice and all seemed well. Due to the market at the moment, we started viewing houses and placing offers whilst sorting out a AIP. By a stroke of luck we managed to get an offer accepted on a house in the town we wanted. We also sold our house quickly as well. There’s an entry date of end of October. 

The house cost me £195000 with a value of 190000

Now here comes the problem, the best mortgage offer I have got is at 6.8% interest and a monthly payment of over £1100 at 35 years. This isn’t sustainable or even achievable. The other reason for moving was so I can gain a second job and boost my income by an additional £750 a month, but I have to live in that town in order to get it. I work full time on a half decent salary. But that monthly amount is ludicrous. 

I’m in dire need of advice of where I can go and speak to in order to get a respectable rate. 

I have been to mortgage brokers. What I really need is someone in a high street lender that can look at my circumstances and press a button that overrides the system and lets me get a normal mortgage. 

Also in 1.5 years, I will be gaining an additional 8k pay rise that’s guaranteed. So when that happens I could readjust my mortgage if necessary. Right now I need the monthly at the very most of £900 a month. 

Any help would be great. Thank you

You mentioned you have been to mortgage brokers, were they not able to assist you?

A broker will be able to check your circumstances and advice you accordingly.

In 1.5 years you mentioned you will get 8k pay rise, for the application today that does not get put into consideration.

conorM95

2 brokers were minimal help, the third as helpful as she could be. 

It’s just frustrating as I’ve done everything I can to put myself in a position and if I could even get 5% then it would make a hell of a difference. 

Does anyone know any building societies that may be overlooked or are worth speaking too? 

simon_or

It's not the answer you want but this is a job for a broker. I've been in your place (only much worse!) and the only way to get a good deal or even any deal was thanks to my broker.

If you had 6 months you could perhaps Google all the banks and building societies and speak to them one by one but if you have an offer accepted then the vendor isn't going to wait.

With even the likes of Nationwide now having some rates over 5%, I don't think a specialist rate of 6-7% is "too high" anymore.

As I know from my experience, there will be a price to pay for a bad credit file but it goes down with time. Why don't you fix for two years and then remortgage to the high street?

If you can't find a decent broker, try contacting ACG or KS, they're both excellent at what they do and know how to help people with adverse credit issues. If they also come back with the 6.8% then that's that.

fergie_

The biggest Q is how much do you want this house? What would you do if you don't take it? Rent? Find somewhere else?

At least you have an offer on the table, but you don't have long to shop around.

From what you say, the difference is only £200 a month (£2400 a year) and then you expect a much higher income. It is a gamble, but could you stretch / cutback, or even if your partner took out an interest free credit card after completion? It would be a risk, but that would cover the short fall until you could remortgage onto a better rate?