Finding a mortgage with a poor credit history is difficult and has to be approached very carefully because of the shortage of lenders available in this market. Having the advice of a qualified Poor Credit Mortgage Broker will greatly enhance your chances. With only a few sub prime lenders to choose from, getting it right first time is very important.
Steven Neale – Specialist Bad Credit Mortgage Broker
Steve and Sue made the whole process very easy and calming. The advice given set me at ease as I thought I wouldn’t be able to get a mortgage due to credit issues of the past. Highly recommend!
11th Mar 2020
Thanks both for all your help!
14 Feb 2020
Excellent service, always informed me of any information required in a timely manor.
13 Feb 2020
Steven and Sue were extremely helpful and knowledgeable and their calming influences made us feel at ease throughout the whole process.
03 Feb 2020
Very obliging, helpful and provided all the guidance we could have expected.
23 Jan 2020
Steve provided an excellent service to us and ensured we had the necessary documentation in readiness for our mortgage application. He was very patient in dealing with all our enquiries looking through several scenarios to suit our situation. The process was seamless and very satisfactory.
13 Jan 2020
SN Mortgages understood our position extremely well, even when there was an unexpected potential move rather than the remortgage.
28 Nov 2019
Thank you – yet again! We have organised a variety of mortgages over the years with SN Mortgages. The mortgage process is always complex by nature, but Steve and Sue always make the ‘journey’ as seamless as possible. Calm, friendly, helpful.
28 Nov 2019
S N Mortgages have provided an excellent service. They have been very accommodating to my personal requirements and provided a timely, yet thorough service. They provided multiple product options and talked me through the benefits in each case. Thank you both for your support and patience.
Mr & Mrs Tarring
14 Nov 2019
Thank you Steve & Sue for all your hard work in in securing a mortgage for us to purchase our first home. No query or question was too much trouble, thanks again.
Mr Hockley & Miss Lee
07 Nov 2019
As always, both Steven and Sue were knowledgeable, helpful, informative, quick and a pleasure to deal with.
19 Aug 2019
Can I get a Mortgage with Defaults? Yes you can!
I know of 2 lenders that will lend up to 95% of a property’s value and 3 more that will lend up to 90%.
With the majority of the other adverse credit lenders, any defaults registered over 2 years ago can be ignored up to 85% loan to value and do not have to be repaid. If they were registered over 36 months ago, you could borrow up to 95%.
I see more defaults registered on client’s credit file than any other adverse credit data. Lenders are obligated to inform you if you have missed payments on an agreement and to give you time to bring the payments up to date.
Unfortunately, some are too quick of the mark and before you know it, a default has been registered on your credit file and once on there, it is very difficult to have them removed. Assuming the company you owe money to agrees to remove it, you then have to wait until they inform the credit agencies to update their systems. And then the agencies have to update their systems!
Because of this, the lenders I deal with have a wide range of products to cater for the odd default right up to unlimited after 1 year and anything in between.
Top tip – always have an open account with a credit reference agency when arranging a mortgage especially the ones that warn you if an entry is added to your file. Why?
You are applying for a mortgage, you sign up for the one month’s free credit report with one of the three agencies (Equifax, Experian & TransUnion) and then you cancel the monthly subscription fee once the free trial is over because you want to save money.
Here are the prices once the free trial comes to an end;
- Equifax – report & score = £7.95
- Experian – report & score = £14.99
- TransUnion – report & score £8.99
(Prices correct as of 23.01.2020)
Then, an adverse entry is added to your file and guess what – you did not know about it because you cancelled the subscription last week and nobody told you!
Having carried out a credit search when a lender receives your mortgage application, most lenders would not carry out another credit search before issuing a mortgage offer. But what if the time between mortgage offer and completion is say 4, 5 or 6 months ahead, or your personal situation changes, you can be pretty sure they will carry out another search, and bingo – what do they find? The adverse entry you knew nothing about and they decline your mortgage.
Think for a moment – what if that had happened between Exchange and Completion? If you are not sure of the implications of that, call me!
Now, if you had maintained an open account, you would have been made aware of entries added to your file and could have done something about it. Once you have completed on the purchase and moved in, then cancel the subscription.
There are free reports offered by Clearscore (Equifax) and Credit Karma (TransUnion) but I recommend Check My File as they provide data from the three credit reference agencies used by lenders – Equifax, Experian & TransUnion – so it is a good place to start to get an overview of your credit history. It maybe that once I have identified a lender, we get copies of your credit file directly from the agency the lender uses to make absolutely sure your credit history is OK for that particular lender.
So the important thing to remember when looking at your credit file is the date the defaults were registered and the amount. When they were cleared is important to some lenders as they will not lend unless they have been paid off before making a mortgage application but as you can see below, I have a lender that will allow 5 defaults in the past 2 years for any monetary amount. The majority of the lenders I deal with do not expect defaults to be cleared so save your money for a deposit.
How much can I expect to borrow?
- 95% if the defaults were registered over 3 years ago
- 90% if the defaults were registered over 2 years ago
- 85% with unlimited defaults if they were all registered over 2 years ago
- 85% if you have no more than 5 defaults in the last 2 years.
- 75% with unlimited defaults after 1 year
It is very important that you obtain a copy of your credit file to see when the defaults were registered and showing the actual monetary value they were for. Click the following link that will take you to a company called Check My File to down load a copy of your credit file.
Right to Buy and Shared Ownership purchasers should go to the relevant page as the criteria for defaults, CCJ’s and arrears is not the same. Any defaults, CCJ’s or arrears are ignored after 1 year.
If you’re looking for Help to Buy (H2B) Mortgage advice with defaults, I can help. Find out more on Help to Buy Mortgages with defaults.
For more information on how I can help you, please call me on: 01494 526400 or complete my online enquiry form.