Mortgage Advice

Apr 02, 2005 3 Replies

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Mark M 21 years ago

Hi folks, We are about to join the property ladder, we should have saved £6000 by the end of May. We're looking at buying a house for under 100k so this should give us 5% deposit and some left over for fees. We both work, but both have had adverse credit history, defaults only, no CCJ's. My partners default were over 6 years ago now, but mine were around 3 years ago. Neither of us have any credit now at all. Should we start looking now for a mortgage? When do we need to hand over or show proof of our deposit? Finally with our credit history how should we approach this, via a IFA or direct to bank/b.s.?

Thanks Mark

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Daytona 21 years ago

You might well be able to go through standard channels for this as it doesn't sound too bad. Try phoning a large broker like Charcol and see what they can do first, then if necessary look at sub prime lenders via an IFA, previous posts here -

This article may help -

The Charcol site is good for seeing what's available - as are the tables from the Financial Services Authority

hth

Daytona

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Rob graham 21 years ago

Finally with our credit history how should we approach this, via a IFA or direct to bank/b.s.?

Pointless going direct. You'll only get the products of that one institution and will you know which one to go to for the best deal and which won't look unfavourably on your credit history? IFA is the route. Contrary to popular opinion they are not all rogues. Plus your insurance is certain to cost you less that that provided by the lenders.

And you'll get a proper illustration of the proposed mortgage, so you''ll be able to see what you're getting.

Rob Graham

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Phil Richards 21 years ago

Be careful about "left over for fees". Although you no longer have to pay stamp duty on purchases under £120K, you'll still have mortgage arrangement fees, survey/valuation and legal fees which all add up!

On exchange of contracts. Certainly I was never asked to prove where the

20% deposit for my recent purchase came from other than in a purchase questionnaire sent out by my solicitor when I instructed them. Basically I just had to say funds were available (in this case in savings) and I wasn't resorting to a further loan.

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