First Time Buyer - Bad Credit, so Mortgage Advice Needed

Bobb12345

I am a first time buyer (43) and have a sizeable deposit (75k) to put towards the purchase of a property, however, I have recently completely paid off a DMP (4 months ago) and I'm finding it hard to get a mortgage. I have no other outstanding debts and it's great to finally be debt free.

I have tried Tembo for the moment but I'm unsure who else can lend to people with bad credit ratings. Can anyone recommend any mortgage broker who might be able to help? I hear L and C is an option. Are there any others that could assist? Many thanks. 

ACG

When did you start the DMP? 
How many companies were involved in the DMP?

If you were in the DMP for 6 years for example, then all of the adverse will likely have dropped off and so theoretically normal rates should be possible. 

If less than 6 years, it will depend on how your credit report appears.

Also, how much does £75k represent? If 30% for example, you could still be looking at reasonable rates... The devil is in the detail. 

L&C are more mainstream really. I think you would be better looking on google for a broker used to working with adverse. 
Get a list of your creditors involved in the DMP and a copy of your credit report. The broker will need them. 

Bobb12345

ACG said:

When did you start the DMP? 
How many companies were involved in the DMP?

If you were in the DMP for 6 years for example, then all of the adverse will likely have dropped off and so theoretically normal rates should be possible. 

If less than 6 years, it will depend on how your credit report appears.

Also, how much does £75k represent? If 30% for example, you could still be looking at reasonable rates... The devil is in the detail. 

L&C are more mainstream really. I think you would be better looking on google for a broker used to working with adverse. 
Get a list of your creditors involved in the DMP and a copy of your credit report. The broker will need them. 

I started it in Nov 2019 and paid it off in full in Nov/Dec 2022. So less than 6 years ago.
There were 6 creditors involved in the DMP, 

I would be looking at a mortgage of around 180k (as it's within my means) so 75k is a good chunk of that. 

I can google a broker, however, that's likely to throw up all sorts (good and bad). Hence my post, wondering if anyone had a particular broker they have used in the past or who they could recommend for people with bad credit.

Thank you for the help though. 

Sncjw

I'd be concerned how you get 75k in savings but couldn't afford to pay back the debt without being on dmp.

Bobb12345

Sncjw said:

I'd be concerned how you get 75k in savings but couldn't afford to pay back the debt without being on dmp.

I never said it was £75k in savings. The £75k is a gift from a family member, and it wasn't available at the time in order for me to pay off the DMP. However, now it is. Hence my question, which you didn't bother to answer, regarding mortgage companies. 

I just wondered if anyone had a mortgage company they had used when they had had previous bad credit. Never assume. Cheers for your reply. 

ACG

There is a possibility you may get it through with 1 or 2 little building societies. Failing that there are specialist lenders but those are only available via a broker. 

I think you just need to call a couple of brokers, have a chat with them and see if they sound knowledgeable and if you gel with them. Ultimately adverse mortgages are more complicated and can take a little longer so you need to feel comfortable with whoever you have. 

Brokers on here are not really allowed to name lenders, mostly because the devil is in the detail and we could be naming lenders who would never accept you or are overkill (ie too expensive). 

Bobb12345

ACG said:

There is a possibility you may get it through with 1 or 2 little building societies. Failing that there are specialist lenders but those are only available via a broker. 

I think you just need to call a couple of brokers, have a chat with them and see if they sound knowledgeable and if you gel with them. Ultimately adverse mortgages are more complicated and can take a little longer so you need to feel comfortable with whoever you have. 

Brokers on here are not really allowed to name lenders, mostly because the devil is in the detail and we could be naming lenders who would never accept you or are overkill (ie too expensive). 

Thank you ever so much, that makes sense.I was hoping to try and avoid the 'google minefield' of many many options it gives you. I guess I can't avoid that. It would have helped to be able to have narrowed it down, but your advice makes sense and it's what I will do. I have approached one broker so far. I shall do some more later. Thanks again. 

Groovy_Chick_

Together mortgages or Norton Home loans

ACG

Groovy_Chick_ said:

Together mortgages or Norton Home loans

Not to be rude, but this is why brokers dont name lenders.

You have basically mentioned the 2 last chance saloon lenders. With settled DMPs I reckon their rates are probably 2-3% above the worst case scenario he/she should be aiming for. 

Bobb12345

ACG said:

Groovy_Chick_ said:

Together mortgages or Norton Home loans

Not to be rude, but this is why brokers dont name lenders.

You have basically mentioned the 2 last chance saloon lenders. With settled DMPs I reckon their rates are probably 2-3% above the worst case scenario he/she should be aiming for. 

I wasn't after lenders. Some recommended brokers would have helped, but I understand if no-one can provide any that can help. Google it is.