Poor Credit Mortgages

There are a growing number of people who are excluded from getting a mortgage with mainstream banks and building societies but here at Selective Mortgages we have access to lenders via whom we can place poor credit mortgages.

We have access to all current adverse credit mortgage lenders who can consider applications from people with a poor credit profile.

As a firm we specialise in placing adverse credit mortgages and bad credit remortgages.

There have been a number of new adverse credit mortgage lenders who have launched products over the last 12 months and we have access to all of the lenders who operate in the poor credit mortgage sector.

We also have access to some regional building societies who can consider adverse credit mortgage applications on a case by case basis at their normal rates where they are able to proceed.

As part of our assessment of your application, we will carry out a detailed record all of the relevant information required to establish if we can assist you with an adverse or poor credit mortgage application.

Please feel free to take the next step and contact us by phone or completing our Online Mortgage Enquiry form on the main section of the website and we will be pleased to try and assist you in your search for a mortgage.

Brexit and Adverse Credit Mortgages

The EU Referendum decision for the UK to leave the EU is having an impact throughout the UK economy and will no doubt continue to do so for some time to come.

This article addresses the current situation regarding the decision to leave the EU and the UK adverse credit mortgage market.

As at today’s date there is virtually no change to the lending criteria for adverse credit mortgages, one lender who offered a 90% mortgage withdrew the product, but we are not aware of any other lenders withdrawing products or tightening up lending criteria.

We have had e mails from a number of adverse credit lenders stating it is “business as usual” and that they do not expect to making any negative changes to their product range or criteria in the near future. So at present, there are still a number of adverse credit lenders who can consider a mortgage application with a 15% deposit.

Many people appear to be nervous of proceeding with a house purchase following Brexit and of course everybody will have their own view on what is right for them.

Our view is that at present there are strict rules applied on mortgage affordability and lenders will not allow people to overstretch themselves when assessing the maximum mortgage advance available, and we can usually secure a fixed rate mortgage which ensures your repayments cannot increase during the fixed rate period.

There is the possibility of a short term reduction in house prices as the impact of Brexit takes shape, but longer term it is not clear where house prices will go, but many people are feeling that if they want to purchase a house because it is right for them and their family, then as long as they are comfortable with the mortgage repayments now and in the future, taking account of other finance commitments and general living costs, then buying the house they want to make their home, is the right decision for them. Of course each person has to decide what is best for them taking account of all the factors involved.

If you would like to speak with us about the above subject or indeed any other mortgage related query, please feel free to call us.

New Adverse Credit Lender Options

Until quite recently, the number of lenders who were active in the adverse credit mortgage sector had not changed for a number of years and the level of adverse credit which was allowed by these lenders had remained the same over this period.

Since the start of 2016, two new specialist adverse credit mortgage lenders have launched and the products they offer allow for an increased level of adverse credit to have been registered depending on the level of deposit which is available.

In addition we now have access to a regional building society who will consider applications where adverse credit which has been fully settled for over year, the lender will assess applications on an individual basis.

We recently secured a mortgage approval for a client who had a £15K CCJ
registered but which was settled for over a year and had since, also had late payment profile on a credit card registered, but back up to date for one year, this client was offered an interest rate of 3.80%.

One of the lenders we have access to will now consider an application with past adverse credit with a 10% deposit. They will consider applications where no CCJ’s or defaults have been registered within the last two years up to 90% of the property value.

With all of the above positive developments, there has never been a better time to try and progress a mortgage approval where adverse credit has been registered.

We would be pleased to hear from you with your mortgage enquiry, please contact us via our online mortgage enquiry form or call us on our Freephone number and we will do out utmost to assist you in your search for a mortgage.

Help to Buy Mortgages with Adverse Credit

Until recently there were no mortgage options available to people with an adverse credit history who want to proceed with a mortgage application under the government backed Help to Buy or Shared Equity schemes.

Within the scheme, the government provides a 20% equity deposit and under the London Help to Buy scheme this can increase to a 40% deposit. The applicant then has to provide a minimum of 5% deposit from their own resources up to a maximum of 20% own deposit.

There are no repayments to make in respect of the government equity stake for the first five years of the mortgage term, then interest is charged at the prevailing rate, currently this is around 1.75% of the equity stake mortgage amount, so this will be factored into the mortgage lender’s affordability calculations.

There are now two mortgage lenders operating Help to Buy schemes where past adverse credit is allowed for, each lender has their own criteria, but past defaults and CCJ’s are accepted depending on the amounts and dates they were registered.

Please note, that at present, the adverse credit mortgage lenders only accept applications for a new build property where the builder is registered under the government’s Help to Buy initiative.

For further details and to establish if you are eligible for the Help to Buy adverse credit mortgage products, please contact us today for a no obligation assessment.

How to get a mortgage with bad credit

You have taken the first step by getting in touch with a specialist mortgage broker who are experienced in placing mortgage for people with an adverse or poor credit history.

 Selective Mortgages have over 15 years experience of helping people to get mortgages where they have a past adverse credit history.

 Whether you are eligible for a mortgage will depend on a number of different factors such as your credit history and your income, and you will normally also be required to provide a minimum 15% deposit to apply for a mortgage.

 If you have access to a copy of your credit file, you can forward it to us for assessment, if you do not have a copy we can let you know how to request a copy to send on to us.

 As part of our assessment of your application, we are required to carry out a fact find where we record all of the relevant information required to establish if we can assist you with an adverse or bad credit mortgage application.

 Please feel free to take the next step and contact us by phone or completing our Online Mortgage Enquiry form on the main section of the website and we will be pleased to try and assist you in your search for a mortgage.

 

New Adverse Credit Mortgage Products

Some good news was released this week regarding the availability of mortgages for people with an adverse credit history.

If you have a minimum 20% deposit in place, mortgage options which allow for up to 5 defaults and 3 County Court Judgements being registered are now available. No monetary values relating to the defaults or County Court Judgements are applied, although acceptance is subject to applicants passing a credit scoring application process.

Previously, the most a lender would allow was 2 defaults and 1 County Court Judgement up to £2,500 in value within the last two years, so the new products represent a big shift in the adverse credit mortgage sector, and will mean that more people will now be able to proceed with a mortgage application where previously they may have been declined.

The new two year fixed rates start at the following rates:

Up to 70% mortgage – 4.99% fixed

70% – 75% mortgage – 5.39% fixed

75% – 80% mortgage – 5.69% fixed

For people with a 15% – 19% deposit, the previous adverse credit allowance of 2 defaults and 1 County Court Judgement up to £2,500 in value within the last two years, still apply.

There are other lending options available for people with a deposit of 40% which allow for a higher level of past arrears, defaults or even past bankruptcies or IVA’s.

To find out more about these new products and other mortgage options which may be available to you, please call or e mail us, and we will be pleased to provide further details.