Lenders - Advice

Yorkshiregirl1986

Hi just after some advice, FTB started the process of looking into getting on the property ladder around September time

Spoke to a broker gave all our info - we had a recent default paid and settled  (under £800 November 2021) we had a DIP from Prestige for 85% LTV then the market chaos hit and we decided to sit tight as we hadn’t found the right property and we aren’t in a huge rush. Broker suggested to sit tight if possible as prestige had changed their products which meant 20% deposit with them. 

DIP has now expired, and our default is also over 12 months. We have found a house now private sale and will be looking to buy this around March time. 

Any advice on lenders who are still offering 85% LTV in our situation? Or anyone who has gone through the process in a similar situation. I am slightly worried we will now need 20% after the way the market has turned after pushing to get our 15% all this time.

ACG

There will be options out there. 
You might even be able to get normal rates - although normal rates now will look like the Precise (not Prestige) rates in September I suspect.

It might be worth just getting a second opinion on the products. I dont want to guarantee you can get a normal lender but I am not sure Precise would have been my first place to try. 

Yorkshiregirl1986

Thank you, ahh precise yes not sure how I came to the name prestige whoops.

That’s helpful hopefully we will be fine and can access other lenders then but yes albeit the rates may be just as high. I’ll keep that in mind

TheJP

The default will certainly go against you with high street lenders, defaults remain on your file for 6 years. Yours is still fresh, You may get a mortgage but the rates will likely be higher than what a high street lenders 5+% is currently. 

Yorkshiregirl1986

Yes we have prepared for a higher rate in the current climate too we were going for a 2 year fixed and hopefully move to a high street lender and better rate following this. 

silvercar

TheJP said:

The default will certainly go against you with high street lenders, defaults remain on your file for 6 years. Yours is still fresh, You may get a mortgage but the rates will likely be higher than what a high street lenders 5+% is currently. 

It is one default, under £1000, settled and over a year old.

. Yorkshiregirl1986 said:

Yes we have prepared for a higher rate in the current climate too we were going for a 2 year fixed and hopefully move to a high street lender and better rate following this. 

You may find a better rate if you fix for 5 years.