poor credit mortgage

[hootcube]

Hello

 

Firstly apologies if there is a different area i should be posting this (i've had a look but can't find anywhere obvious).

Im currently needing to buy a property but dont know if this will be possible. To keep it short i have 2 defaults against my credit account (though one may be taken off if bank charges case goes well!) I have since settled both accounts(approx 2 years ago) and dont currently have a penny of debt to my name. Will this poor history stop me getting a mortgage? I suspect i will be able to get a specialist poor credit mortgage but are these worth the effort and money? Any advice very much appreciated as im getting pretty stressed with it all now!

For info i would be able to offer at least 5% (probably 10%) deposit which im hoping may help my chances?

 

Regards

Hootcube

[21stcentury]

Hi Hootcube,

 

Yes you will be able to get a mortgage, when you go for one it might be a slightly higherr rate. Get a fixed mortgage for 2 years and then remortgage to a prime mortgage rate.

 

Dependant upon who has registered the defaults you might be able to get a prime rate mortgage anyway. Talk to an independant financial advisor.

 

If your defaults were registered with a lender who uses only experian credit reference agency then it may be wise to take out a mortgage with a lender who uses Equifax as their credit reference agency thus showing that you have a clean credit profile record. Your mortgage advisor will talk you through it.

 

Definetly worth buying at present, rent is just throwing your money away.

[peterdo]

Dont go for a fixed rate mortgage now, looking at 0.5% lower for a variable at the moment against a fixed rate. Plus pretty much a stick on for rates to fall in February and probably another couple of times over the next 6 months.

 

But basically speak to an IFA, they will look at specialist mortgages such as GMAC etc who may be able to do you a deal.

[sillygirl1]

DON'T take a GMAC mortgage, they are in trouble as they are American based and they will snatch the property back ASAP. They only allow ONE missed payment (and that can even be by one day) and they go for instant reposession. Their solicitors, Eversheds, play big boys rules so you don't stand much of a chance of fighting....

 

I wouldn't mortgage at the moment as the market is so bad in both respects. Leave it until at least Easter when a clearer picture will emerge and you have managed to save a bit more towards a deposit.

[Mark_Blackpool]

Hi Hootcube,

Definetly worth buying at present, rent is just throwing your money away.

 

Unless, of course, house prices fall substantially, a view a growing number of economists are beginning to ascribe to.

 

In which case, buying would be throwing your money away, potentially even more money than you would spend renting, and you may then have the delight of negative equity to go with it.

 

I'm not saying don't buy - but it's hardly as clear-cut as suggested.

[Goldlady]

In my experience there are lots of lenders who take no notice of credit card defaults - well it obviously makes a difference to the interest rate but will certainly not affect your eligibility.

 

I am in a dilemma myself at the moment because we have converted our mortgage to interest only and I can't help wondering if we would be better off renting:confused:

[hootcube]

Thanks everyone for responses. Its always a great help to use this site and recieve unbiased views rather than having a company try to insist their products are the best.

Out of interest would anyone know what sort of interest rate is normally offered on a poor credit mortgage? or what sort of increase it is compared to prime mortgages?

 

Thanks

Hootcube

[Goldlady]

The interest rate on our mortgage is 10.62%. And we have a really dreadful credit rating.

[postggj]

Dont Want To Seem Like I Am Sticking My Nose In But Do You Mind Telling Me Your Mortage Provider For Future Reference GOLD LADY

[peterdo]

Bet you its GE Capital, my uncle has a mortgage with them at a similar rate, quarter point basis cut makes no difference when its that high!

[Goldlady]

No - wrong - would avoid GE like the plague - have just paid them off and now pursuing the unfair charges and the ERC they added, in addition to trying to repossess our house two years ago - not my favourite lender:eek: