Self Cert Mortgage With Bad Credit
A Self Cert Mortgage With Bad Credit - Are They Available?
The answer is yes, but each case is viewed differently and matters such as the size of the deposit, the amount of equity in the home, the severity of the bad credit, the age of the bad credit and the amount of bad credit will all have an impact on the availability of such a deal.
The following is a real life mortgage that we have recently dealt with...
Mr. & Mrs. A (the real name not given for obvious reasons) visited our offices looking for a self cert mortgage, their situation was as follows:
Mrs. A had been living in her council property for approximately 12 years, Mr. A had moved in approximately 4 years ago and between them they had applied for the right to buy and been approved. The council had offered their property to them for £106,000 and had valued it at £140,000. Mr. and Mrs. A were looking for a mortgage of £112,000. They had gone to an alternative lender for a mortgage which had been approved in principle however they had since been told that due to Mr. A's past bad credit history they could not help.
Mr. A had previously had several CCJ's filed against him, and to make matters worse was made bankrupt in 2004, obviously this made it extremely difficult to find a lender willing to help. The bankruptcy had now been satisfied and Mr. A had the appropriate discharge papers. He is also a self employed builder and had been trading for 7 years however, he only had 1 year of accounts.
Knowing that the situation was testing to say the least, Mr. A agreed for us to go ahead and conduct a credit search. Our office then completed a fact find and proceeded to look at available lenders that were willing to lend with such specific criteria: self cert, 1 years accounts, a right to buy and previously bankrupt! We found a suitable deal with the lender Kensington that was available at a reasonably competitive interest rate (when his situation was taken into account) and offered the deal to our clients.
We then proceeded, at the client's request, to complete a decision in principle on line, which was approved. Mrs. A then popped into the office with their ID's, bank statements, passports and drivers licenses all of which were needed by the lender to convert the decision in principle to a full mortgage application. The case has since completed and Mr. and Mrs. A are the proud owners of their new home.
