Getting a mortgage with a poor credit Rating

[Sheff6er 10]

Hi all,

 

My sister is looking to buy her first house but has a poor credit rating - does anyone have any good tips or websites for her??

 

Cheers

 

6er

[mrobbo 10]

For all things mortgages/loans/credit cards etc, I always use http://www.moneysupermarket.com.

 

Hope this helps.

[Meaks 11]

Getting a mortgage is normally easier than other forms of loan as its secured on the property.

[JoeP 11]

First step is for her to get her current credit record and tidy it up teh best she can.

 

If she has CCJs, see if she can get them paid up and marked as satisfied.

 

Make sure the information in there is sound, and that there are no errors. There's no point in her paying for soemone to 'tidy up' her credit rating - it does no good at all.

 

She needs to be realistic about who she applies to; every application she makes that generates a credit search reduces her score slightly for 6 months. If she has unsatisfied CCJs, defaulted debts or appears on CIFAS or INSIGHT records (all in her credit file) then the chances are that the 'High Street' lenders won't touch her. They like to play safe.

 

However, most High Street lenders do have a 'sub prime' department that deals with less favourable ones. For example, 'Platform' is the sub-prime arm of Britannia, etc. For a sub-prime mortgage you will pay higher interest rates for at least the first couple of years, and you'll also have lower multiples of salary AND will probably be expected to find a 5 to 10% deposit, maybe more.

 

But they will usually lend you the money.

[RichD 10]

It also might be worth noting that when shopping around for mortgages, some lenders wil give you an agreement in principle BEFORE they do a credit check - the Woolwich being one. Always ask when speakign to someone, and tell them if you don't want them to do a credit check just yet. This means you can have a rough idea of what you will be offered but your credit file doesn't fill up with searches.

[shihtzumad 10]

Hi if you have a poor credit rating in the past, when cant people just give you a chance on getting a loan are mortgage, to prove you can do it..... am in the same situation my self.........aint it easy

 

good luck, if any one no's anyone who will take you on please let me no... i have been in touch with experian and got my record file, to be truethful i dont understand it

[rustyfunk 10]

Hi all,

 

My sister is looking to buy her first house but has a poor credit rating - does anyone have any good tips or websites for her??

 

Cheers

 

6er

 

http://www.housepricecrash.co.uk?

 

May make her think twice about committing financial suicide...

[Andy 10]

Hi if you have a poor credit rating in the past, when cant people just give you a chance on getting a loan are mortgage, to prove you can do it..... am in the same situation my self.........aint it easy

It sounds harsh to say this, but they're in the market to make money, and have to assess the risk of each application. Although a mortgage is secured, lenders really don't like repossesing property, so if they think there's a chance you won't make the repayments, they'll just refuse to lend to you.

 

good luck, if any one no's anyone who will take you on please let me no... i have been in touch with experian and got my record file, to be truethful i dont understand it

What is it you don't understand? It should have come with a leaflet explaining it. If you would prefer to PM me rather than post here, I'll try and help you understand it if I can.

[Eme1 10]

Hi, I would highly recommend this site: http://www.moneysavingexpert.com/ -it has fantastic tips and latest information from Martin Lewis (who appears on lots of money/consumer programmes on TV). It's non commercial and has sections on everything financial including mortgages and explanations of the best credit reports to obtain -the simplest to read with links to all the relevant websites mentioned. It highlights any free trials of services too in their weekly newsletter. The information on the site is on the side of the consumer and is currently leading the campaign against unfair bank charges.

 

Hope you find it useful

[DavidRa 10]

Hi, I would highly recommend this site: http://www.moneysavingexpert.com/ -it has fantastic tips and latest information from Martin Lewis (who appears on lots of money/consumer programmes on TV). It's non commercial and has sections on everything financial including mortgages and explanations of the best credit reports to obtain -the simplest to read with links to all the relevant websites mentioned. It highlights any free trials of services too in their weekly newsletter. The information on the site is on the side of the consumer and is currently leading the campaign against unfair bank charges.

 

Hope you find it useful

It is all to do with risk the lender has recourse to the property and to the borrower.If you have a poor payment profile defaults and ccjs then the high

street banks will not usually help, they will give you an umbrella when the sun is shining.You can get a mortgage but will pay a higher interest rate and have to put down a larger deposit

[Sheff6er 10]

I need a 100% mortgage but have a bad credit history - can anyone recommend any lenders?

[torin8 10]

probably your best bet is to see a mortgage advisor...