Mortgages for ex bankrupts, people with CCJs, Defaults and even past IVAs we can help
Getting a mortgage if you have a bad credit profile has been very difficult since the ‘credit crunch’. Lenders are more protective of their funds and are selecting customers with a good credit rating to lend to first and foremost. However, whilst the lenders all like to believe they are world-beaters on rate many fall short of their targets and cannot obtain the critical mass or margin they seek, and it is this space that we actively utilise and get very positive results. In fact we are so confident we can help applicants with county court judgements (CCJs), defaults, arrears, individual voluntary arrangements and discharged bankrupts where others fail that we do NOT charge an upfront fee for our service.
The bad credit mortgage offerings are dynamic and opportunities open and close daily so if you have adverse credit you need to move quickly or you will be disappointed. At Niche Advice we wholeheartedly believe the finance should be ready to go before you begin the search for the property. This never more true if you have had credit problems in the past otherwise you may get false hopes up. We can normally obtain a formal decision from the lender that will advise the maximum they will lend you based on your credit profile, giving a clear steer on the price bracket you should be able to buy at. The decision can last for a few months depending on the adverse credit lender we secure leaving breathing space and confidence to negotiate with the vendor.
As things chop and change so radically we are constantly refining our mortgage information on county court judgements (CCJs), defaults, arrears, individual voluntary arrangements and discharged bankrupts on our adverse credit web pages to make sure you have a good insight into what is possible but we are happy to talk through your individual circumstances if you prefer.
In my research for this article on ‘Get a mortgage with bad credit’, I looked on Google and to my dismay most of the information presented on websites on bad credit mortgages was outdated plus most of the leading ranked pages were forums with incorrect information being passed on. Therefore if you are research the web for adverse credit mortgages make sure you check the date of the posting otherwise you are likely to be disappointed.
Check out our quick reference guides that show adverse credit perimeters.
Quick Guide to IVA or Bankruptcy Mortgages – Updated for June 2013
Mortgage solutions for bankrupt applicants
|Not discharged||Not possible|
|Discharged up to 2 years||40% deposit|
|Discharged up to 4 years||20% to 25% deposit|
|Discharged up to 6 years||15% to 25% deposit|
Quick Guide to CCJ or defaults Mortgages – Updated for June 2013
Mortgage solutions for first time buyers with CCJs and defaults
|In last 12 months||£500||Yes for 6 months||Yes for 6 months||25%|
|12 to 24 months||£500||Yes for 6 months||Yes for 6 months||25%|
|Over 24 months||Any amount||No||Yes||15% to 20%|
Quick Guide to CCJ or defaults Mortgages – Updated for June 2013
Mortgage solutions for current mortgage holders with CCJs and defaults
|In last 12 months|| |
|12 to 24 months|| |
|Over 24 months|| |
Quick Guide to Arrears Mortgages – Updated for June 2013
Mortgage solutions for applicants who have had arrears
|Missed Payments||Unsecured personal loans or credit||Mortgage or secured loan|
|In last 6 months||None||None|
|In last 12 months||2 missed||1 missed|
|In last 24 months||3 missed||2 missed|
Frequently Asked Questions
Q: My bank has rejected my mortgage application due to CCJs, arrears and defaults can I still get a mortgage?
A: Quite possibly, check our quick reference guides to see if you pass the initial test. If so, then you would need to adhere to the other normal mortgage checks such as secure and stable finances and income.
Q: I have been in an IVA in the past few years can you get me a mortgage?
A: Yes, if the IVA is conducted satisfactorily. If the IVA has been settled it’s important that you maintained a good credit record since.
Q: I have been made bankrupt. The bankruptcy included a repossesion can I get a new mortgage?
A: Repossessions settled by bankruptcy do restrict lender choice but are not insurmountable. They bankruptcy needs to have been discharged for at least 3 years and there must be no ‘over-hang’ of a repayment or charge to the lender. Further note, repossessions outside of bankruptcy proceedings are not something we can help with.
Q: Can I obtain a mortgage to purchase my Right-to-Buy if I have had bad credit?
A: Yes, the minimum loan is £50,000, minimum property value £100,000, minimum income is £30,000 and the rates start from 8%.
Q: I want a bad credit mortgage to assist with a purchase under the Government Help To Buy Scheme
A: This is not possible. The lenders active in this market look for impeccable credit conduct. The same applies to all shared ownership or shared appreciation schemes.
Q: I had some CCJs last year how does that affect my chances of getting a mortgage?
A: The size of the judgment, number of judgments, whether they have been satisfied, or registered correctly or in error all have a bearing on the acceptance. We have placed mortgages with CCJs of the size of nearly £20,000 but it depends on the rest of your circumstances.
Q: I had some late payments on credit cards and catalogues how does that affect my chances of getting a mortgage?
A: If you have missed more than two payments in the last 12 months it is going to difficult. If the level is higher but more historic than your chances of acceptance improve.
Q: What sort of mortgage rates can I expect for bankruptcy mortgage?
A: Typically, the initial rate will be between 4% to 8.25% to reflect the risk posed.
Q: What are your charges?
A: My fee is 1%, £1000 min on all complex mortgages. I only charge this once the mortgage has completed. This is uncommon as brokers tend to charge fees upfront or on Offer, personally I don’t think it’s a fair system to operate this way. So just to be clear if you don’t get your place I don’t get paid.
Q: What is the process of getting a bad credit mortgage?
A: i) Make an online enquiry by completing the form on the top right hand side of this page. I will then get in touch to ask for some more information about the case.
ii) Please supply an up-to-date credit file report (link at the bottom of this page for a ‘free’ credit report).
iii) I will email over information about the products, rates and fees. Once you’re confident you would like to go ahead:
· I’ll gather more information about yourself and ask fore supporting documents to help with the mortgage process such as pay-slips, bank statements and IDs to submit to the lender.
· The lender will assess the case and if happy will instruct valuation of the property.
· Upon successful valuation an offer is produced by the lender.
· Applicant will agree with the Offer and will commence the legal work.
· Properties will exchange and then subsequently complete.
For more information on how we can help you get a mortgage if you have had bad credit in the past, please contact us on 0207 993 2044 or alternatively complete the simple enquiry form on the top right hand side of this page.
Payam Azadi is a partner at Niche Advice Ltd who are Independent Financial and Mortgage Advisers in London.
Author: Payam Azadi
Payam Azadi is a partner at Niche Advice who are whole of the market Independent Finance Brokers In London. His role is very much focused on Property financing both on residential and commercial lines.