Mortgages for missed payments, CCJs and defaults with a small deposit up to 90% Loan to Value
Wonderful news for aspiring home owners who have had credit problems as there is a brand new product on the market that will allow missed payments, CCJs and defaults with as little as a 10% deposit. Yes you can now get a Bad credit Mortgage with 10% deposit.
Until this week mortgages for applicants with credit issues were normally limited to at least a 15% (if not larger deposits). The good news this is no longer the case as we now have access to an adverse mortgage with just a 10% deposit. The access is strictly limited and is not open to the general public or indeed to many intermediaries. However, as you would expect from a Specialist Adverse Credit Mortgage Broker the 10% deposit product is open to Niche Advice customers.
90% loan to value Bad credit Mortgage
So what adverse credit does the 10% deposit mortgage allow?
DEFAULTS
Unlimited unsatisfied or satisfied defaults acceptable if registered over 3 years ago.
CCJS (County Court Judgements).
Satisfied CCJs acceptable if registered over 2 years ago and are satisfied before application.
Unsatisfied CCJs by agreement.
MORTGAGE ARREARS
Mortgage arrears (first or second charge) if they occurred over 3 years ago. Not repossessions.
PERSONAL FINANCE ARREARS
Arrears on personal ‘unsecured’ credit e.g. credit cards, loans, store cards, overdrafts, hire purchase etc considered. Maximum of status ‘2’ on your credit file in the last year.
UTILITY BILL ARREARS
Arrears on utility bills such as water bill, electricity bill, gas bill, landline telephone and mobile phone are normally fine.
DEBT MANAGEMENT PLANS
Normally acceptable provided payments have been maintained and the arrangement has been running less than 2 years.
Other criteria for the 90% Bad Credit mortgage
- Minimum property value £75,000 (£120,000 for new build flats)
- Residential mortgages only
- Minimum age 21 years
- Maximum term 40 years
- Minimum employed period 3 months
- Minimum self-employed period 2 years
- Maximum loan £500,000
Example Product Rate and Fees – Bad credit Mortgage with 10% deposit
[ezcol_1fifth]Initial Rate: 4.99%[/ezcol_1fifth] [ezcol_1fifth]Subsequent: 5.55%[/ezcol_1fifth] [ezcol_3fifth_end]The overall cost for comparison 5.68% APRC[/ezcol_3fifth_end]
Bad credit Mortgage with 10% deposit Product Features: Unlimited satisfied CCJs. Unlimited defaults satisfied or not. Mortgage arrears. Provided no adverse credit registered in the last 3 years.
| Type and initial benefit period | Fixed for 2 years. |
| Minimum deposit / equity: | 10% |
| Valuation fee | £500 |
| Booking fee | £0 |
| Lender arrangement | 1299 |
| Telegraphic transfer / CHAPS fee | £15 |
| Legal fee | £150 |
| Early repayment charge | 3/2% of the amount redeemed in the fixed period |
To find out more about getting a Bad credit Mortgage with 10% deposit call T: 020 7993 2044 or complete the Contact Form on this website.
Any property used as security, which may include your home. may be repossessed if you do not keep up repayments on your mortgage
Important Information
Residential and Buy to Let Mortgages
Rates current as at 28/7/16 . The overall cost for comparison is based on a purchase price of £300,000 over a 25 year term. Eligibility will depend on your own personal circumstances.
KEY – ERC = Main early repayment charge.
The purpose of this web is for information only and is based on a fictitious illustrative scenario. It does not constitute a Mortgage Offer in any way.
It is essential that you seek independent mortgage advice as a suitable product will be based on your own individual circumstances. An interest rate should not be read in isolation, and you should refer to your personal key facts illustration and Mortgage Offers for full terms and conditions. If anything is unclear it should be discussed fully with both your mortgage and legal advisors before entering into a mortgage contract with the lender.
The information contained herein is based on research through the Trigold (IRESS UK) sourcing system. When first published to this site the data is normally 24 hours behind real time, and may or may not still be available.
A first charge over your property is required as security for the loan.
The formal mortgage offer of an advance will be subject to a valuation and other satisfactory references.
Author: Payam Azadi
Payam Azadi is a partner at Niche Advice who are whole of the market Independent Mortgage Brokers. His role is very much focused on Property financing both on residential and commercial lines. To get in contact with him please click here.
