Hi, this is Ceri…
Not being able to re-mortgage or buy a house because of bad credit is a myth, and I’m about to dispel it.
What I’m about to say often comes as a shock to clients, when I’m sat with them and they’re telling me about the CCJ they picked up 4 years ago for a parking ticket their friend down the pub told them they didn’t need to pay – it won’t stop you from buying or re-mortgaging your home.
CCJs and Bad Credit
Firstly, if you do get a parking ticket, phone the company and pay it. A CCJ for £1,000 is far more painful than the £40 fine for parking on double yellows, or parking in Tesco for 4 hours while you did all your shopping elsewhere.
At Remoo Mortgages we are specialists in dealing with complex credit. In fact, I make no bones about it. I love a good complex credit case, because they are the cases where we most exceed the expectations of our clients, and that to me feels like we’re making a real difference to people’s lives. It’s a mighty claim, and I’ll come back to it in a minute or so.
If you have defaults or CCJs, even if they’re unsettled, YOU CAN still buy a house or re-mortgage. When dealing with a specialist lender, they often don’t credit score. They’re more interested in how you’ve conducted yourself, credit wise, over the past couple of years.
At the time of writing this, I can tell you that if you have an active CCJ or default that was registered more than 3 years ago and nothing since there’s a lender who will lend you 95% loan to value to buy a house. That’s just a 5% deposit from you or a family member. That’s right, gifted deposits are still allowed.
If you’re looking to re-mortgage and you have defaults or CCJs that are more than 2 years old, even if they aren’t settled you could re-mortgage up to 90% loan to value.
Credit Card Debt
We often find that clients who have complex credit can carry quite a bit of high-rate personal debt. Credit cards from Capital One, Aqua and Vanquis can be great, but they very quickly run up high interest balances. You could be in a position where you re-mortgage to repay your unsecured debt* and reduce your monthly outgoings in the process. Remember earlier where I said we can make a real difference to people’s lives? Well, these are the cases where we really do. Clients with complex credit needs have saved anywhere from a hundred pounds or so, right up to a case where the clients were the best part of £1,800 a month better off. £1,800 A MONTH. Get in touch with use to find out how we can help you.
Here are 5 fantastic specialist lenders who are all great at what they do…
5 Specialist Lenders for Complex Credit
1 – Aldermore
They’ll lend to 95% for purchases and 90% for re-mortgages and their rates are often the best in the specialist space. They also offer product switches at the end of your fixed term which is a rarity amongst specialist lenders.
2 – Kensington
Like Aldermore they’ll also lend to 95%, but their criteria is a little more flexible. On the flip side, they’re application and processing a bit more detailed, which means they can be slower. They’re underwriters are great though, and are always willing to take a fair view on a clients circumstances.
3 – Pepper Money
Owned by an Australian bank, Pepper will currently lend to 85% and are great for self employed clients looking to use latest years accounts or net profit from a limited company rather than personal income. There can be application fees, which they like to say is a filter, but I see more as a barrier – Sort it out Pepper.
4 – Foundation Home Loans
A streamlined application process, and competitive rates. They’re a little behind the other lenders because they don’t currently have free legal products, but they do have some very good criteria if the others won’t lend.
5 – Bluestone
I genuinely think Bluestone are one of the best lenders out there. Ok, so they’re rates are about as high as you’ll find in mortgage terms, but their support teams and underwriters are all fantastic. They may be the last chance saloon of specialist lending, but I know if I’m placing a case with them their underwriters will take the time and look for reasons to lend, rather than reasons not to.
* By consolidating existing debt please remember that although you may achieve short term savings, it will result in extending the term of the loan, and in turn increase the total cost in most circumstances. You are also securing a previously unsecured debt against your home.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.