Has anyone got a mortgage with bad credit?

[NellaBonella]

Looking for a bit of advice really.
We have a large deposit (just over 15%) and earn almost £50000 a year between us but my credit history is not good and I have a two year old CCJ on my score (less than £500 and settled in full).
Our mortgage broker was initially very helpful when we mentioned income and deposit but now we've gone a bit deeper he's gone cold.
He has also contacted two high street lenders who have done hard searches on me which are now showing on my credit file.
Has anyone managed to get a mortgage with bad credit? Did you use a broker or go direct and do you have any recommendations for lenders who may consider us?

I had a ccj that I didn’t know about, from an internet bill in a student house. We got a mortgage using London and Country. Our deposit was 25%.

3wildones thank you for replying!
I've been recommended a lender by a lady in work whose daughter was in the same situation.
Our mortgage broker got back in touch today and said that he only likes using high street lenders as the others charge a massive interest. Was this the case for you?
He initially told us they use the whole market but that doesn't seem to be the case and he's passed us to a different team as he doesn't think he can help.
I'm feeling a bit pessimistic about the whole thing now. I've been using ClearScore to monitor my score and it's been going up and up to the point where I'm just under the average score of people on my area.
The broker told me to pay for an experian record and this has said my score is very poor and I'm unlikely to get credit from anywhere

Have a look at sub prime mortgages, I used to work in a call centre answering the phone for loads of different mortgage companies, whatever the company flashed up on the phone we had to pretend to be and we deal with loads of sub prime customers so the mortgages are out there 😊

Chorley do you think these were massively more expensive at all?

Speak to London and Country as they also specialise in this type of situation and offer free advice

Your actual ‘score’ is the least of your worries. The actual CCJ and any missed payments, defaults are the problem. Most high street lenders will have in their policy they won’t lend within three years of a settled CCJ.

Have you got your heart set on a particular property? Because if not then I’d say wait until it’s been three years. Honestly you’ll save so much money over the years as sub prime lending is higher rates for the loan, and if you go through a broker they’ll probably charge a fee. Also, multiple searches will drive your score down (I know I said it’s not important but it does have a bearing).

Our mortgage is with nationwide as they had the best interest rate. London and country were great for us so would really advise talking to them.

We got a mortgage with precise. At 5.5% interest rate.

It was hard work but they gave us one in the end.
It depends what the ccj/ default was for. Credit card is a big no no (what we had) so high street lenders won't touch us. Then is a sliding scale down to mobile phone defaults which some high street lenders will be ok with

Also I found l&c crap for stuff like this. They want easy mortgage people not more difficult unusual cases.

Another vote for London and Country for this type of situation. My credit is less thab stellar but they got us a good deal.

The interest rates are a lot more yes but a lot of people use them until they get their credit rating up and then remortgage for a way better deal

Years ago (pre 2007 so may not count as mortgage rules very different now) I got a good deal from BM solutions (www.bmmortgages.co.uk) with much worse credit than a single CCJ.

They only deal through intermediaries according to their website but give a link to brokers who use them. Platform is a subsidiary of the co-op and also do what is known as non-conforming mortgages. Not a recommendation obviously and there are other providers.

I would read the information on moneysavingexpert on mortgages and talk to a mortgage broker but make sure they screen for CCJ acceptance. When we saw ours, he had a software package that he put the details in and it filtered for mortgages that we qualified for. The lenders make their criteria available to intermediaries so they should know who will and won't accept you.

Your IFA doesn't sound very good appropriate to your needs. There is absolutely no need to pay for credit file information these days. You can get it all for free via moneysavingexpert. Also be aware that credit scores are fairly meaningless and all lenders assess borrowers according to their own criteria.

He shouldn't be putting random applications in with lenders either. The whole point of using a broker is to find one who will accept your circumstances, including what sounds like a minor credit blip, without wasting applications and trashing your credit file.

If you don't have perfect credit, then it is likely you will pay more interest but it won't necessarily be ridiculously high and as a PP says, it is likely that you will be able to remortgage onto a standard product in a few years time. You might not even have to wait until the CCJ drops off your file, just that it is 'old enough'.

Yeh I echo what was said above. Get a new broker. He obviously has no experience in adverse credit mortgages so I'd find someone who does.

Moneysaving expert has a credit club where you can see your credit report from experian for free.

It's unlikely you won't get a mortgage but you will need to work for it. Squeaky clean record now. Minimise debt. Maximise cash. Make sure you have all of your paperwork in top shape

We have found a property we love and want to get on the ladder soonish (OH's parents are telling us about possible brexit side affects and that we may not be able to afford if prices go up).
We're also wanting to move out of rented because it just feels like a waste of money. Plus we want to TTC in a couple of years and would rather be settled in our own home.
Since the CCJ there has not been anything that has negatively affected my score.
Mortgage broker has passed us to another team now so waiting for them to get in touch

London & Country will sort it out for you & find you a lender

I've sent London and Country all of our details, including credit reports so waiting to hear back from them.
Still haven't heard back from the current broker we're using which is obviously a bad sign.
Fingers crossed L&C pull through for us

Placemarking, sorry. In a similar situation. Best of luck to you op

tixer that's fine. I'll update the thread when I know more

So an update:

L&C got in touch today and said that there shouldn't be an issue finding a lendor. They did say, however, that there was less choice than there would be for someone with a good score.
They also said that the CCJ is NOT showing as settled which he said was probably the reason we've been rejected by a couple of the High Street lendors. I've contacted the company who the debt was with and also the court and they were closed so will try again Monday.

We've not heard from the initial broker at all so it appears that they've given up on us.

That's so good! Good luck

Just an update:

We have purchased a house!

It took a while sorting out the incorrect information and I was passed from pillar to post with no one willing to do anything.

We have been accepted for a mortgage at affordable rates and now have a house!

Thank you to everyone who gave advice and I hope it gives people a bit of hope that even with previous financial mistakes it is possible to buy a property

Brilliant! Well done and how lovely

I used Which? Mortgage brokers in similar circumstances in January and got a mortgage. They were absolutely fantastic.

Congratulations on your house