Adverse credit...help!!

Puma21_2

Dear Martin/forum readers,

I have almost come to the end of my teather!! I am in the process of looking for mortgages for a property and I have some adverse credit. I have a default on my file dated November 2006, so just under 2 years. Nothing since that but some others which are 3 years old. Myself and my girlfriend are looking for a 95% mortgage for the value of £175,000 (property value £185,000), and the best quote I have got from a broker is from First National for 7.99% with a £4k higher lending charge & a £3k fee. Kensington will not as my default is not 3 years old. Do you or anyone now where I can go now?? Desperate now and feeling like I am a second class person. Our joint income is about £60k.

Please can someone help??

Thank you for your help.

herbiesjp

Do you have an up to date copy of your credit file?

In todays credit crunch climate, lending criteria is getting very tight, especially at higher loan to values i.e 95% borrowing.

What is your gf income? Could she look to but just in her own income?

DO either of you have any other debts?


How much was the default for, and how did it happen?

You might have one or two other options available - is your broker whole of market? Is the £3k a broker fee or a mortgage arrangement fee specific to the deal in question?

sarkin

ITs geting harder and harder to secure high loan to value mortgage with bad credit. There may be better rates around but if that 3 k fee is a broker fee then contact a whole of market fees free broker.

Puma21_2

Thank you Herbie.

My gf only earns about £19k so would not be able to get that sort of mortgage value. I do not have any more debts but as I say that default is just under two years old. It was for a Capital One credit card for the value of about £1000, just pure admin error as it was not on a direct debit.

So do you think we would stand a better chance if we had 10% of the property value?

The fee is charged by GE Money.

Again, thank you all for your advice and help.

loveandlight

I have absolutely no idea why you are feeling like a second class citizen? If it affects you that much, perhaps it might be better on your joint earnings that you save up a much larger deposit to put down, so you have access to a larger range of mortage products?

beecher

I think the best idea would be to maybe rent for 6 months, save up a 10% deposit and get a cheaper deal. Or perhaps renting for a year would make a difference if it is the 3 year timespan which makes a big difference?

Good luck - hopefully by then prices will have come down too

Puma21_2

Does anyone know of lenders who will lend with a default in the last 2 years if we have a 10% deposit?

Puma21_2

Anyone have any ideas?

herbiesjp

It's not justthat one though.

You have the other issues with your credit file

I have a default on my file dated November 2006, so just under 2 years. Nothing since that but some others which are 3 years old

It's not going to be as simple as name a lender I'm afraid

You'll need to discuss in more detail with another adviser, if you do not think your current one is giving you the best deal - fee free and whole of market would be good

Leon_W

Without knowing your full circumstances it is impossible to say. A few lines on a BB do not constitute a full fact finding exercise. Go back to your broker and ask them the question as they are in the best possible position to advise you.

BTW, Capital One do not mark an account as defaulted just for "a pure admin error because it was not on a DD". An account is only marked as defaulted if after repeated attempts to collect the money, no payment is forthcoming.

chappers

As Beecher says find yourselves somewhere to rent save like hell and then jump in, if you are considering taking on a mortgage at that rate then you should be able to get a decent bit of cash together in the next year or so, it will just be a case of living frugally, with buying your house as the goal.