Getting a mortgage with a bad credit rating

[squiglyline]

Hi, hoping someone else has been in the same situation and can help.

My husband and I are trying to buy a house and the mortgage process is taking far too long. The guy we have arranging it is really taking his time. We started the process in March and he keeps saying he will get us a quote but still nothing.

My husband has a great credit score, well above average but mine on the other hand is pretty poor with a default.

I know there are companies who lend to people who have bad credit. I’m hoping someone can point me in the right direction.

We’re in Scotland if that makes a difference.

Thanks

I think you need to sack your Mortgage Broker and find better one. Has he given you any reasons for why it is taking so long?

Hope you haven't paid him a penny! He's completely incompetent!

A good broker will find you a mortgage, you might have to pay more interest or a bigger deposit but you'll get one.

Hi squiglyline
Defaults are looked at under differing attitudes from lender to lender.
eg 1 default under £500 is acceptable to some; mobile phone defaults are less of an issue; is the default satisfied & if so when?; Multiple defaults can be ok, depends on the £s & dates etc.

Many Estate Agent based Brokers do not have the access to many Adverse Credit Lenders. And they do not always have the time or motivation to work with something that is out of their "easy" profile.

Thanks,
It’s been excuse after excuse, he left our file at home or the computers went down then his mum was ill.

The default was settled in jan. my credit report also now says I’m a low risk to a lender.

We have said to him he has to the end of the week then we’re moving on so hopefully we will get something.

He’s a friend of the family so I think that’s why he’s been given so much time but we have lost out on a house we fell in love with because it’s taken so long.

We have enough for a 15% deposit for the lowest value I got when googling our wages etc and about 10% for the higher end.

I’m also 6 months pregnant and wanted to be in a new house for the baby coming 🙈

Non Household name mortgage lenders take longer to process applications (some take ages). What I would do is check ALL 3 Credit Reports, thats Experian, Equifax & Call Credit. If u r lucky the Default may not be on one of them - then u can steam ahead with the right lender for you.

Please do not follow the advice of applying for a mortgage with a lender if one of the credit reference agencies aren’t showing the default. That is mortgage fraud. The question on the application isn’t “Is there a default showing on your credit file?”, it is “Have you ever defaulted on a credit agreement?”.

That said, no competent broker would take this long to research the case, find a lender, quote and with your permission go ahead with an Agreement in Principle followed by application.

Find a new broker, and it’s vital that you choose one who is whole of market with unrestricted access to lenders, as you will need a specialist lender and not all brokers have access, especially if they are panelled.

The issue from the OP is threefold -

1. The default. How much it is for, as different lenders have different thresholds. When was it registered? It helps that it is satisfied, but it’s more important how long ago it was registered. What was it in relation to, some lenders ignore telecommunications defaults, or unsecured debt defaults.

2. Location. Some lenders who would accept the default may not lend in Scotland, so the broker would need to check that.

3. Maternity (if you are relying on your income for affordability) What are the maternity pay arrangements? When will you be returning to work? Will you return to the same level of pay? Will there be any childcare costs once you do?

Trying to find a lender who matches all 3 criteria may be where your current broker is struggling, if they’re not experienced or whole of market, so definitely find a new one. Perhaps ask on your local FB page for a recommendation.