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Poor Credit - Mortgage Advice

DFW240980
DFW240980 Posts: 25 Forumite
edited 17 November 2015 at 12:39PM in Mortgages & endowments
I've just completed a 7 year DMP and all of my toxic debt has been cleared. As with most DMP’s they have left a trail of defaults on my credit file most are dated in 2010 and one in 2012, come October 2016 I will just have the one default showing on my file which is fully settled.
I have second property which I rent out to a family member which I don’t want to sell. (I never defaulted or paid late on my mortgage)

We currently live in rented accommodation and are looking to move ASAP due the fact we are paying 11k a year in rent and not getting anywhere, plus I’m not getting any younger (33).

My credit file as it stands ranges between Poor->Fair depending on which agency is used, I have spoken to a few whole market brokers who, quite frankly said it would be a waste of time applying for a mortgage until all the defaults have gone, others have suggested some high street banks may consider me but won’t tell me which ones until I pay and start the application. A Quick google says Halifax may consider me but one of my defaults is with them so I suspect regardless of my improving credit file they will probably not consider me for future borrowing.

I’m looking for options and a bit of advice really, that advice might be sit tight for a year and save but if there’s an alternative or some experience anyone can share I’d be extremely grateful.

Looking to borrow 180k – 260k with 10% deposit saved.

Statement of Affairs and Personal Balance Sheet

Household Information

Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 1

Monthly Income Details

Monthly income after tax................ 4400
Partners monthly income after tax....... 850
Benefits................................ 0
Other income............................ 600
Total monthly income.................... 5850


Monthly Expense Details

Mortgage................................ 470
Secured/HP loan repayments.............. 960.5999999999999
Rent.................................... 850
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 35
Gas..................................... 35
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 47
Mobile phone............................ 12
TV Licence.............................. 13
Satellite/Cable TV...................... 58
Internet Services....................... 0
Groceries etc. ......................... 600
Clothing................................ 0
Petrol/diesel........................... 300
Road tax................................ 46
Car Insurance........................... 37.5
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 20
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 3704.1



Assets

Cash.................................... 0
House value (Gross)..................... 3000
Shares and bonds........................ 0
Car(s).................................. 8000
Other assets............................ 2000
Total Assets............................ 13000



Secured & HP Debts

Description....................Debt......Monthly...APR
Mortgage...................... 73000....(470)......4
Secured Debt.................. 13000....(567.8)....0
Hire Purchase (HP) debt ...... 7000.....(392.8)....0
Total secured & HP debts...... 93000.....-.........-


Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card....................800.......200.......0
Credit Card....................0.........0.........0
Credit Card....................0.........0.........0
Total unsecured debts..........800.......200.......-



Monthly Budget Summary

Total monthly income.................... 5,850
Expenses (including HP & secured debts). 3,704.1
Available for debt repayments........... 2,145.9
Monthly UNsecured debt repayments....... 200
Amount left after debt repayments....... 1,945.9


Personal Balance Sheet Summary
Total assets (things you own)........... 13,000
Total HP & Secured debt................. -93,000
Total Unsecured debt.................... -800
Net Assets.............................. -80,800
«1

Comments

  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    I take it that either you or your partner already own a property which is currently being let out? Do you/they have consent to let, a buy to let mortgage or plan on selling it to fund the new purchase?
  • pollyanna24
    pollyanna24 Posts: 4,391 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Pixie5740 wrote: »
    I take it that either you or your partner already own a property which is currently being let out? Do you/they have consent to let, a buy to let mortgage or plan on selling it to fund the new purchase?

    I have second property which I rent out to a family member which I don’t want to sell. (I never defaulted or paid late on my mortgage)
    Pink Sproglettes born 2008 and 2010
    Mortgages (End 2017) - £180,235.03
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  • amnblog
    amnblog Posts: 12,769 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    DFW240980 wrote: »

    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household......... 3
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 4400
    Partners monthly income after tax....... 850
    Benefits................................ 0
    Other income............................ 600
    Total monthly income.................... 5850


    Monthly Expense Details

    Mortgage................................ 470
    Secured/HP loan repayments.............. 960.5999999999999
    Rent.................................... 850
    Management charge (leasehold property).. 0
    Council tax............................. 130
    Electricity............................. 35
    Gas..................................... 35
    Oil..................................... 0
    Water rates............................. 35
    Telephone (land line)................... 47
    Mobile phone............................ 12
    TV Licence.............................. 13
    Satellite/Cable TV...................... 58
    Internet Services....................... 0
    Groceries etc. ......................... 600
    Clothing................................ 0
    Petrol/diesel........................... 300
    Road tax................................ 46
    Car Insurance........................... 37.5
    Car maintenance (including MOT)......... 25
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 20
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 20
    Contents insurance...................... 10
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 0
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 3704.1



    Assets

    Cash.................................... 0
    House value (Gross)..................... 3000
    Shares and bonds........................ 0
    Car(s).................................. 8000
    Other assets............................ 2000
    Total Assets............................ 13000



    Secured & HP Debts

    Description....................Debt......Monthly...APR
    Mortgage...................... 73000....(470)......4
    Secured Debt.................. 13000....(567.8)....0
    Hire Purchase (HP) debt ...... 7000.....(392.8)....0
    Total secured & HP debts...... 93000.....-.........-


    Unsecured Debts
    Description....................Debt......Monthly...APR
    Credit Card....................800.......200.......0
    Credit Card....................0.........0.........0
    Credit Card....................0.........0.........0
    Total unsecured debts..........800.......200.......-



    Monthly Budget Summary

    Total monthly income.................... 5,850
    Expenses (including HP & secured debts). 3,704.1
    Available for debt repayments........... 2,145.9
    Monthly UNsecured debt repayments....... 200
    Amount left after debt repayments....... 1,945.9


    Personal Balance Sheet Summary
    Total assets (things you own)........... 13,000
    Total HP & Secured debt................. -93,000
    Total Unsecured debt.................... -800
    Net Assets.............................. -80,800

    Very nice, but you should engage a broker and stop trying to sort this out yourself. The property in the background may be as big a barrier as the credit history.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • tara747
    tara747 Posts: 10,238 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    You owe £93,000 unsecured???
    Get to 119lbs! 1/2/09: 135.6lbs 1/5/11: 145.8lbs 30/3/13 150lbs 22/2/14 137lbs 2/6/14 128lbs 29/8/14 124lbs 2/6/17 126lbs
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  • DFW240980
    DFW240980 Posts: 25 Forumite
    edited 17 November 2015 at 2:13PM
    amnblog wrote: »
    Very nice, but you should engage a broker and stop trying to sort this out yourself. The property in the background may be as big a barrier as the credit history.

    I''ve seen several brokers some wouldn't give me the time of day even though they are "whole "market. I spoke to a broker specialising in poor credit mortgages but they tried to get a DIP with high street lender, she wouldn't tell me which one until I shelled out £250. I appreciate my second property might be an issue to some lenders especially those specialising in adverse credit hence the reason I'm putting out there to a wider audience rather than ringing every broker under the sun.
  • tara747 wrote: »
    You owe £93,000 unsecured???
    No that's secured including my mortgage
  • ACG
    ACG Posts: 24,721 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Find a different broker?

    Having a property in the background can be an issue as can the defaults. There is a possiblity of high street lenders but I would say its probably only potentially going to fit with 1 or 2 and if those fail we are looking at non high street lenders.

    Also, you make 33 sound over the hill! Im not quite there yet but still.

    You should probably only pay any fees on results as its not a given this will go to offer, but its not a case for every broker so its important you find someone confident in adverse.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Thanks ACG. I've spoken to several brokers who apparently deal with adverse credit but they either don't want to know or can't seem to advise properly. No doubt their is a broker out there who can provide some sound advise and possibly a mortgage at the end of it but I'm yet to find one.

    I appreciate you reassuring me about me age!
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Is the rent on the other property included in your monthly income?
  • Thrugelmir wrote: »
    Is the rent on the other property included in your monthly income?

    Yes 600 pcm
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