Buy to let Mortgage -with bad credit rating

ericaaugust

Does anyone know of any mortgage companies who would be prepared to take on someone with bad credit. We have two properties, one of which we would like to refurb (partner in trade) and rent out. We only owe £1500 on this property which we think would be worth 80-85K once finished. We just tried Principality mortgages but they declined us as my partners credit rating is pretty crap. We would like to borrow 40k to consolidate and refurb. Has anyone any ideas as doing this would save us hundreds of pounds a month?

_Andy_

Hi

When you say 'bad credit' could you be a bit more specific? E.g. CCJs/arrears, how much, when registered, is it paid off how long ago, etc...

Probably your best bet would be to get hold of your Experian and Equifax file and go to a whole of market broker who can find a suitable lender for you.

ericaaugust

Hi

Thanks for respondong so quickly!

He had a judgement last September which we settled immediatley. It was not for a debt but a repayment for some work that was deemed unsatisfactory - we didnt, hence it went to court. The amount was about £800. WE do have a certificate to say its been satisfied but this obviously makes no difference. He has also been in arrears with payments, not due to insufficient funds but a total lack of money managing skills or the importance of keeping on top of things! As you can see I'm extremely hacked off with him! All the more annoying as my rating is very good but I dont earn enough to qualify on my own! I dont know the extent of any arrears he may have had yet, but Principality have said they will send a copy of the Equifax report to us so....watch this space.....

_Andy_

Hi Erica

No problem.

When you say arrears, was it on the mortgage or on unsecured credit commitments?

nspnick

Birmingham Midshires may be worth speaking to but as Andy says could do with more details. With so much equity available I would expect to find someone who would offer decent terms.

ericaaugust

This is what I cant understand, the house is obviously worth more than the loan, our monthly outgoings would be reduced by about £600 so its easily affordable. I cant see how they can lose, or am I being very financially naive? The arrears have not been for the mortgages, they have been for late payment of utility bills, credit cards(5 years ago at least), you know daft stupid little things that later bite your bum!

Thanks for the suggestions and the HOPE!