Mortgage advice

[katharina]

Hello,

I was wondering if I could receive some advice on our situation.

We would like to apply for a mortgage in 2021. My partner, who is the main earner and the main applicant, currently has an outstanding default that will drop off in January 2021. However, he has a somewhat troubled financial past here in Britian. He entered into an IVA that was settled in 2012. No evidence of it exists anymore on any of the main credit file institutions (Equifax, ClearScore etc.) He also used to have Payday loans, however, they are equally legacy and do not show on his record.

By doing research, it would appear that despite the majority of his issues being long settled and removed, this scenario would disqualify us from getting a mortgage with a high street lender. Adverse lenders on the other hand, would expect a deposit of around 40-50% (we would at best have 45k saved up by early 2021 and we would be trying to buy a family home with three bedrooms around 220-260 k).

Our age is against us here, too as by the time of the intended application, by partner will be 34 and I will have reached the ripe old age of 36. I myself have never had any issues at all, but equally never even had a credit card as I never considered them necessary. We do have two children, which I know is another "factor of unfavorability".

Any advice would be greatly appreciated.

Many thanks!

[Foggy]

That credit history is not always going to be the problem you think it might be. There are some sympathtic lenders out there. I would, however, advise chatting to a broker with experience of adverse credit as refused applications will add their own, more recent, stain to credit records.

We have two such brokers who regularly post here and have helped many posters, all with fairly recent IVAs in their backgrounds. Their contact details can be found in their profiles here:

Ryan: memberlist.php?mode=viewprofile&u=18488
Shaun: memberlist.php?mode=viewprofile&u=22837

[Mark Bruton]

we are using ryans firm to get us a mortgage and they have got us one with a high street lender despite our ages being 44 and my iva finishing in march this year so it can be done.

[katharina]

Hi Foggy and Mark,

Many thanks for your quick replies and thank you Foggy for passing on those contact details.

It's good to hear that our situation isn't as hopeless as it currently appears to be! While I understand that a less than perfect financial conduct poses a risk to lenders, judging you based on circumstances you may have found yourself in 8 or 10 years ago seems unfair and in a way immoral. I always assumed that one gets to turn over a new leaf every 6 years; I didn't know that any past issues could haunt you forever!

Mark: I'm thrilled to hear you managed to get a deal with the high street and congratulations on starting a new chapter. All the best!

[Ryan]

Hi Katharina,

From the information you have provided come 2021 all of the negatives will be historic and we would therefore be looking at using High Street Lenders for you at that time. Your ages are certainly not a factor.

Regards

[katharina]

Hi Ryan,

Thank you ever so much for your response and for passing on such positive news!
Out of curiosity: Would most lenders still offer a 30 year mortgage term aged 36? Also, is there an official website of the brokerage you work for so I can contact you officially when the time comes?

Many thanks again!

[Ryan]

If you go to the link to the 'IVA Experts' on the top left our contact details can be found there. Bets to ask to speak to Mike as he's the main point of contact in the Office.

Lenders these days will generally lend to age 69 depending on your situation.

Regards

[Foggy]

If you go to the link to the 'IVA Experts' on the top left our contact details can be found there. Bets to ask to speak to Mike as he's the main point of contact in the Office.

Lenders these days will generally lend to age 69 depending on your situation.

Regards

Or the link at the bottom of Ryan's Posts.

[Ryan]

Oh yes or there (thanks Foggy!).