Failed affordability - do we have any other options or are we now mortgage prisoners??

simon_or

All I'll say is don't take London Country's opinion as the last word on this. If they aren't able to help, most definitely get second opinion from a solid independent broker.

MattMattMattUK

InAPickle76 said:

ACG said:

Do you have bad credit? 
I cant see that on your post, but maybe I missed it. 

Adverse lenders are starting at around 6.5% and go up from there. It might not be much cheaper than your offset. 

We had defaults in the past but all dropped off credit files now. We have 2 loan at the mo which I know are the issue when it comes to affordability. L&C actually got back to me yesterday to say that there is a possibility that there are a few lenders that may be able to help us - have sent over all bank statement, payslips, proof of PIP/CA for my son/husband so will keep my fingers crossed for any news next week.

If no luck, I will search for an adverse lender broker - anyone have any recommendations for where to start with this option?

Thanks again for all your help and support so far

What are the prospects of you dealing with those loans quicker than their full terms, cutting back on other costs to allow you to do so? Increasing your income, your husband doing work around caring, perhaps evenings whilst you are at home? How much longer do you have on your current fix? 

It may be worth posting an SOA on the Debt-free wanabee board to see what can be saved, some short term reductions to clear the loans quicker might be a lot of benefit in the medium to long term. 

InAPickle76

simon_or said:

All I'll say is don't take London Country's opinion as the last word on this. If they aren't able to help, most definitely get second opinion from a solid independent broker.

Thank you - lots of advice has been to get a local broker - should they clearly advertise that they deal with adverse credit? Don't want to waste time with a broker that does not specialise in this area but not sure how to find the best one?

InAPickle76

MattMattMattUK said:

InAPickle76 said:

ACG said:

Do you have bad credit? 
I cant see that on your post, but maybe I missed it. 

Adverse lenders are starting at around 6.5% and go up from there. It might not be much cheaper than your offset. 

We had defaults in the past but all dropped off credit files now. We have 2 loan at the mo which I know are the issue when it comes to affordability. L&C actually got back to me yesterday to say that there is a possibility that there are a few lenders that may be able to help us - have sent over all bank statement, payslips, proof of PIP/CA for my son/husband so will keep my fingers crossed for any news next week.

If no luck, I will search for an adverse lender broker - anyone have any recommendations for where to start with this option?

Thanks again for all your help and support so far

What are the prospects of you dealing with those loans quicker than their full terms, cutting back on other costs to allow you to do so? Increasing your income, your husband doing work around caring, perhaps evenings whilst you are at home? How much longer do you have on your current fix? 

It may be worth posting an SOA on the Debt-free wanabee board to see what can be saved, some short term reductions to clear the loans quicker might be a lot of benefit in the medium to long term. 

Paying off the loans more quickly is not really an option at the mo as things are pretty tight anyway My husband has health problems himself so would struggle to find suitable work unfortunately.

We have an offset mortgage and are on the SVR so no fix - paying 7.5% interest currently. 

I have been on the DFW wannabe board in recent weeks and posted a SOA. I received lots of fabulous advice with regards to day to day cost reductions etc which has been of great help

ACG

I dont understand why you are talking about adverse lenders. If you have no adverse you do not need one (and I say that as a broker who mostly does adverse). 

L&C are ok at the simple things, but you just need a good experienced broker which might not be L&C. I would just look for a local broker who has been around a while and has some good reviews. That should be all you need. 

InAPickle76

ACG said:

I dont understand why you are talking about adverse lenders. If you have no adverse you do not need one (and I say that as a broker who mostly does adverse). 

L&C are ok at the simple things, but you just need a good experienced broker which might not be L&C. I would just look for a local broker who has been around a while and has some good reviews. That should be all you need. 

Thank you - I just thought that in view of the 2 loan payments and potential issues with affordability when taking these into consideration, we may not be accepted by the standard lenders. Your Mortgage People came back with a definite 'no' based on affordability. L&C have said there may be some options........

I shall start looking at reviews of local brokers whilst waiting for L&C to get back to me.

With regards to broker fees - what is the current average cost for a broker - just so I have a guide to go off when searching.

Thanks so much again

MWT

InAPickle76 said:

Paying off the loans more quickly is not really an option at the mo as things are pretty tight anyway My husband has health problems himself so would struggle to find suitable work unfortunately.

As you've mentioned a couple of times, your problem is affordability not adverse events on your credit file.

Definitely talk to a good local broker, but unless you can find some additional income, or enough spending reductions to reduce the loans you may still find that affordability shortfall remains the problem...

ACG

InAPickle76 said:

ACG said:

I dont understand why you are talking about adverse lenders. If you have no adverse you do not need one (and I say that as a broker who mostly does adverse). 

L&C are ok at the simple things, but you just need a good experienced broker which might not be L&C. I would just look for a local broker who has been around a while and has some good reviews. That should be all you need. 

Thank you - I just thought that in view of the 2 loan payments and potential issues with affordability when taking these into consideration, we may not be accepted by the standard lenders. Your Mortgage People came back with a definite 'no' based on affordability. L&C have said there may be some options........

I shall start looking at reviews of local brokers whilst waiting for L&C to get back to me.

With regards to broker fees - what is the current average cost for a broker - just so I have a guide to go off when searching.

Thanks so much again

Our fees for new customers with no bad credit are generally around £500. It might be higher is a small mortgage. I think most brokers who do charge charge between £300-600for a standard application. 

jj_43

More of your equity would be needed. You have options.