Purchase of a property with a poor credit history from a deceased family member

Manchester Mortgages received this message via our contact form on our Web page –

poorcredithistory“Myself and my boyfriend are looking to get a joint mortgage together. We have tried numerous banks/building society’s but we keep getting knocked back due to my bad credit history. My boyfriends credit history is great, and when we apply they are happy with him, but it’s just mine letting us down.

We have found a house that is ready to buy, it is a family property that is currently in probate (we have proof of this) and has a value of £135,000. We have a 10% deposit saved up of £13,500 but we are still adding money to this every month! We are currently living in the property rent free whilst we try and buy it. We only moved in the property in November.

We both have good stable jobs, with good money coming in between us and can very much afford to do this. It’s just my past letting us down.

I need help ! Please can you contact me back ?”

CLIENTS SITUATION

Manchester Mortgages contacted the senders of the email to obtain full details of their requirements.

Our clients were First Time Buyers both employed in their mid 20’s jointly earning £48,000 per year, had no children and were looking to purchase a property that belonged to one of the applicant’s grandmother who had sadly died recently.

The property was valued at £ 135,000 and one of the applicants father was a beneficiary of the will.

Clients had £ 13,500 savings ( 10% ) available for the deposit and therefore required a mortgage of £ 121,500.

The property was in the process of going through probate at the time of the enquiry.

THE PROBLEM

One of our clients had a clean credit history with the other having had 7 defaults over three years ago.

The property was also in the process of going through probate at the time of the enquiry – lenders usually require that the people selling the property have owned it for at least 6 months.

Clients had been to 5 other lenders and had been credit scored and declined by each resulting in these searches appearing on their credit file.

frustratedcoupleTHE SOLUTION

After researching the whole of the market Manchester Mortgages found a lender willing to lend 90% on a competitive three year fixed rate who was also willing to accept the past defaults and also that the sellers had not owned the property for 6 months.

We liaised fully with the lender and advised them fully at mortgage application regarding the property going through probate and the mortgage offer confirmed that once probate was granted the mortgage was available.

CONCLUSION

Our clients now own the property and by fixing the mortgage rate clients will know what their mortgage payments are for the next 3 years.

Also by fixing their mortgage rate for 3 years it will mean that when Manchester Mortgages contact our clients to review their mortgage the existing defaults will be over 6 years old and therefore subject to clients maintaining their credit commitments we should be able to re-mortgage clients to a mainstream lender at a competitive rate.

SUMMARY

All mortgages have some sort of twist to them – we know because Manchester Mortgages deal with them every day – contact us on 0161 706 0242 or send us a message through our contact form on our Web page to discuss your requirements