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Bad Credit Mortgages 2013

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  • Bad Credit Mortgages 2013

    Anyone after a bad credit mortgage in 2013 will have struggled without the required deposit if they were buying a property or the required equity if they were remortgaging.

    Basically, a 20% deposit/equity is required - the problem is 20% is a large sum of money especially when the whole reason for the adverse credit was a lack of funds.

    That said, if you do have a 20% deposit then there are several lenders who are prepared to assist - here's a sample of some of the main helpful features:

    with 20% some lenders can:
    - ignore all defaults and ccjs over 2 years old

    - accept mortgage arrears up to 2 in the past 12 months (but none in the past 3 months)

    - accept you if you are currently in a debt management plan

    - accept you if you were on an IVA, this usually requires being satisfied at least 2 years ago

    - accept bankruptcies signed off at least 3 years ago

    If, however, you are struggling to find the 20% deposit then the following maybe helpful:
    - having a family member provide part of the deposit

    To help repair your credit file:
    - get yourself on the voters role

    - pay off your defaults and ccjs

    - try to avoid going into an IVA or debt management plan, I come across a lot of clients who are advised to go into such an arrangement whilst being totally unaware of the fact that their credit file will be wiped out for the foreseeable future.

  • #2
    Re: Bad Credit Mortgages 2013

    Best advice will always be:
    Don't buy what you clearly cannot afford.
    Even if some people appear to want to "help" you get into debt or borrow from friends or family to buy a home.
    Having been declared bankrupt before should mean you should never be allowed to rack up debts again.
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    • #3
      Re: Bad Credit Mortgages 2013

      Adverse credit and affordability are 2 separate issues. We all make mistakes but anyone who can afford a mortgage, which is all part of the FCA mortgage compliance requirements, and has managed to both address their adverse credit issues and provide the required deposit should and will be provided with the necessary mortgage finance; including discharged bankruptcy cases.

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      • #4
        Bad Credit Mortgages 2013

        Bad Credit Mortgages 2013

        Originally posted by Sean. View Post
        Anyone after a bad credit mortgage in 2013 will have struggled without the required deposit if they were buying a property or the required equity if they were remortgaging.

        Basically, a 20% deposit/equity is required - the problem is 20% is a large sum of money especially when the whole reason for the adverse credit was a lack of funds.

        That said, if you do have a 20% deposit then there are several lenders who are prepared to assist - here's a sample of some of the main helpful features:

        with 20% some lenders can:
        - ignore all defaults and ccjs over 2 years old

        - accept mortgage arrears up to 2 in the past 12 months (but none in the past 3 months)

        - accept you if you are currently in a debt management plan

        - accept you if you were on an IVA, this usually requires being satisfied at least 2 years ago

        - accept bankruptcies signed off at least 3 years ago

        If, however, you are struggling to find the 20% deposit then the following maybe helpful:
        - having a family member provide part of the deposit

        To help repair your credit file:
        - get yourself on the voters role

        - pay off your defaults and ccjs

        - try to avoid going into an IVA or debt management plan, I come across a lot of clients who are advised to go into such an arrangement whilst being totally unaware of the fact that their credit file will be wiped out for the foreseeable future.
        The mortgage market is quiet for bad credit mortgages just now but there are still lenders willing to help.

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        • #5
          Re: Bad Credit Mortgages 2013

          There are now more lender's offering bad credit mortgage options in 2013.

          Just recently 2 lenders have improved their criteria re accepting defaults and ccjs under 2 years.

          This is good news for those wanting a bad credit mortgage in 2013.

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          • #6
            Re: Bad Credit Mortgages 2013

            Best advice will always be:
            Don't buy what you clearly cannot afford.
            I couldn't have said it better..

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            • #7
              Re: Bad Credit Mortgages 2013

              Very true - one the biggest reasons people have bad credit in 2013 is due to not being able to afford their loan payments.

              Assessing affordability is a key area and also being able to maintain the current level of income.

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              • #8
                Re: Bad Credit Mortgages 2013

                i am also looking for advice on bad credit mortgages,

                My partner has just inherited half a house, we are looking to get a mortgage of 90k (£62,500 to buy my partners brother out and the rest to extend both on the side and back)

                We have both paid off our debts - My partner 2 months ago and myself 1 month ago.

                Problem is i used to be in a debt management plan so there are defaults on my credit report (My score 793 my partner 723).

                Barclays refused us yesterday because i was on a debt management plan , even thought this is all paid off.

                Is it worth going for a bad credit mortgage?

                Many Thanks in advance for any help and advice.

                Comment


                • #9
                  Re: Bad Credit Mortgages 2013

                  Hi Minimes,

                  Your credit score is fairly healthy - and being on a debt management plan is fine so long as you don't want any more than 80% loan to value.

                  What is the value of the property? If it works out that your £90k mortgage is 80% or under then I maybe able to help you.

                  Thank you.

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                  • #10
                    Re: Bad Credit Mortgages 2013

                    On the face of it you should be able to find a lender,
                    I would find a mortgage broker that can get all your details and find a lender for you.

                    Comment


                    • #11
                      Re: Bad Credit Mortgages 2013

                      Lender's are increasing their bad credit mortgage offerings - so long as you've got between 15% and 20% and your adverse credit is over 2 years old then you have a reasonable chance of securing your mortgage.

                      Bad Credit Remortgages - Great Success Rates - Contact Us Now - Remortgaging with Bad Credit History

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                      • #12
                        Re: Bad Credit Mortgages 2013

                        I think you should find a mortgage broker that can get all your details and find a lender for you....

                        Comment


                        • #13
                          Re: Bad Credit Mortgages 2013

                          Agreed - we specialise in bad credit mortgages so are able to advise and assist in most cases.

                          Best Bad Credit Mortgages 2013 2012 - Bad Credit Mortgages Scotland Lender - Bad Credit Mortgages 2013 2012

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