How to get a mortgage with defaults!

Getting a mortgage when you have defaults can be very difficult, especially if the defaults are within the last 12 months.

High street lender will typically not accept defaults within the last 6 years even if you have no other credit issues and a fairly good credit score.

The good news is many lenders will accept defaults on a credit file, even it they are within the last 12 months.

When you have credit issues it is important to speak to a mortgage broker who is an adverse / bad credit specialist. Only by speaking to a bad credit specialist can you be confident you are obtaining the best deals for your circumstances.

At Plus Financial Solutions we are experts in helping our clients obtain mortgages when they have defaults, we have access to the whole of the market and have access to the top adverse credit lenders including:

Bluestone Mortgages
Pepper Home Loans
The Mortgage Lender
Precise Mortgages
Kent Reliance
And Many more…

Contact us today to find out how we can help you secure your new mortgage, or call us on 01604 328 091!

Can I get a mortgage with CCJ’s?

Having a county county judgment (CCJ) can seriously affect your chanced of being approved for mortgage. The amount of time that has passed since the CCJ was registered and settled is key to whether you will be able to obtain a mortgage.
The general rule for the mainstream (high street) lenders would be 6 years after the CCJ was registered before they will accept your application.

However, hope is not lost for those who have a more recent CCJ, there are lenders available within the adverse market that will consider application where the have been CCJ’s in the past, some will need none in the last 2 years whilst some only need it to be 3 months since the CCJ was registered.

In addition, some lender will ignore smaller defaults typically under £250 or £500.

Another important restriction is that currenlty you are likely to be limited to a maximum of 85% of the property value if you have a recent CCJ (within 2 years) over £250.

Like all mortgage applications the lender will assess any other previous credit issues and your ability to repay the mortgage when they make their assessment.

Overall, as long as it has been over 3 months since the last CCJ and you have a minimum of 15% equity remaining in the property having a CCJ will not stop you obtaining a mortgage on its own merit.

We are specialists in helping customers with CCJ’s, contact us today to see how we can help you secure your next mortgage – 01604 328 091!

How much should I pay a broker for a bad credit mortgage?

Bad Credit Mortgage Broker Fees

How much you should pay a broker can be a very confusing issue when you have a bad credit history. Due to the complexity of finding a suitable mortgage most mortgage brokers will charge a fee if the client has had credit problems in the past.
Unlike a client with clean credit where the broker can simply look to place you with a lender that has the best deals available, if you have some credit issues it becomes a much more complicated case and will take up a lot more of the mortgage brokers time and therefore they are likely to charge more for such a service.

In addition to the extra time needed to help a customer, it is vital that the broker is a specialist within the adverse credit mortgage market. Adverse lenders have very specialised criteria when it comes what bad credit they will accept. Whilst one might accept a CCJ over 3 months old others will need it to be at least 12 months, it is therefore essential that the broker you choose is a specialist in helping customers with previous credit issues to ensure you are getting the best deals possible.

Broker fees vary a lot across the market ranging from low fixed fees to a percentage charge of the loan up to 5% of the loan amount. Some brokers may insist on upfront payment whilst many brokers will allow payment on completion only.

Personally, I would be very cautious paying any broker an upfront fee that is not refundable if the mortgage does not complete. If the mortgage is declined you may not get back any fees that have already been paid.

At Plus Financial solutions, we do not believe you should be paying any upfront fees to a broker, therefore we never charge any upfront fees. Our broker fee just is 1% of the total loan amount subject to a minimum of £1495.

Regardless of your credit history, we would love to help you find your next mortgage, contact us on 01604 328 091 or email to find out how much you can borrow today.


Can I port my mortgage to a new property with bad credit?

Porting A Mortgage With Bad Credit

Porting a mortgage when you have had recent bad credit can be challenging, however, it may be possible and can often be the best option to allow you to keep a much lower rate.
If you have a mortgage with a high street lender but have recently run into financial difficulties resulting in missed mortgage payment or had county court judgments registered against you, it might be difficult for you to find a new lender when looking to purchase a new property.

If you can find a new lender, because of the recent poor credit you might find the rate on offer is a lot higher than the one your current lender has on offer, in these circumstances it can sometimes be a much better option to stick with the current lender and ask them to port the existing mortgage to the new property.

Many mortgage contracts allow porting in their terms and as long as no additional borrowing is required and you will not be in a worse financial position by moving many lenders will allow you to port your mortgage.

When you look to take out a new mortgage it is always important to consider all of your options and this should include looking at the potential to port your existing mortgage.

At Plus Financial Solutions we have had a lot of success in helping our clients port their mortgages to new properties, even when they have been heavily in arrears with the existing lender. We have recently ported mortgages with Santander, Nationwide, and Barclays.

If you would like help finding your new mortgage, please contact us on 01604 328 091 where an adviser would be happy to look into your options.

3 essential mistakes to avoid when applying for a mortgage!

Below are 3 of the most common mistakes people often make when applying for a new mortgage:

1) Regularly using an overdraft in the months leading up to making a new application. Many lenders will want to see at least 3 months bank statements to help them assess your application, in particular, they are looking to check the new mortgage is affordable. A potential new lender may question why an applicant is continually using an overdraft and this may affect their final lending decision.

2) Applying for additional credit after their application has been submitted to the lender. Many people think that once their mortgage has passed the initial credit check it won’t matter if they take out additional borrowing to purchase a new car, this simply isn’t the case. Whilst this might not always be noticed, some lenders will do additional checks nearer the completion date. If you have taken out additional credit this may affect their decision to lend.

3) Having multiple applications to lenders when you do not fit criteria. This is something we see constantly, clients approaching all of the high street lenders and having many credit searches carried out only to eventually realise they never meet their criteria. The main result is that all of these unnecessary searches will further reduce a credit score and can make it even more difficult to find a suitable lender, aside from all of the time wasted this can be very frustrating.

Using a whole of market mortgage broker is one of the easiest ways to avoid many of the potential pitfalls when applying for a new mortgage, by using a good adviser they should be able to help and guide you to find the best mortgage for your circumstances.

At Plus Financial Solutions our mission is to help all of our clients find the perfect mortgage for them, call us on 01604 328 091 to see how we can help you today.