How long after being bankrupt can I apply for a mortgage? 

The effects of being bankrupt can last a long time, but how long do you need to wait until you can apply for a new mortgage?

Like any negative credit blips on your credit file, it makes it very difficult to obtain a mortgage when you have been bankrupt.

Most High Street lenders will not consider your application if you have been bankrupt within the last 6 years.

In the adverse market, lenders are more forgiving, many will consider lending 3 or  4 after your discharge date.

Currently, we even have lenders who will consider an application 12 months after the discharge date.

Having a bad or poor credit history will typically mean you will need a larger deposit. If you have previously been bankrupt it is likely the lender will ask for between 15% to 40% down.

If need any help obtaining a mortgage after being bankrupt speak to a mortgage advisor who, like us, is an expert in this field.

At Plus Financial Solutions we love helping our clients find great mortgage deals, contact us today for a free quote on 01604 328 091.

Can I get a mortgage when I have mortgage arrears?

Missed Mortgage Payments:

Having missed mortgage payments makes if very difficult to be approved for a mortgage, particularly if they are fairly recent.

Most high Street lenders will only consider a mortgage application if the arrears are over 3 years old with no other credit issues on your credit file.

The good news is that adverse lenders are more forgiving with mortgage arrears. Many of these lenders will accept missed mortgage payments over 2 years old and some will ignore missed payments over 12 months. More recently some lenders will even allow missed payments as long as they are over 3 months old.

When lenders assess missed payments they take into account of the number of consecutive missed payments. For example, if you miss 2 months in a row it will show as a status 2 on your credit report, miss 4 payments in a row and it will show a status 4.

While lenders might accept a missed mortgage payment as above, anything over a status 1 in the last 12 months will seriously hamper your chances of obtaining a new mortgage.

Overall, a couple of missed mortgage payments in the last few years should stop you obtaining a mortgage, missing a lot will make it very difficult. Paying your mortgage on time should obviously be a priority.

If you need any help obtaining a great mortgage contact us today on 01604 328 091.

How to check my broker is offering me the best deal?

Getting the best mortgage deal!

Using a whole of the market mortgage broker can often seem the best way to get a good deal when looking for a new mortgage, but how do you know if they truly offering you the best deal?

Like all purchases, the easiest way to check is to do a comparison.  You can easily do this yourself or speak to another broker or even your bank.

To check yourself simply have a quick look on the mortgage comparison sites online and check out some of the best buys. It will quickly become clear if the deal you are being offered is competitive. Don’t forget to include any fees when comparing rates.

If you are still not sure, speak to another mortgage broker, most will quickly be able to confirm if they have a better deal available.

At Plus Financial Solutions we always recommend you shop around to ensure you are always getting the very best rate for your personal circumstances.

If you need any help choosing a great mortgage deal, contact us today on 01604 328 091 for fast friendly advice.

I am self employed, what do i need to provide for a mortgage?

Self-Employed Mortgages:

Proving income to a potential lender when you are self-employed can feel like a daunting task, don’t worry it is probably easier than you expect.

In today’s market, most lenders will want to see your latest your last 2 years SA302’s. The good news it these can now be printed directly from the HMRC website assuming you have your log in details. The link below directs you on how to obtain your SA302’s:

https://www.gov.uk/sa302-tax-calculation

In addition, to the SA302’s some lender will also want last 2 years Tax year overviews, again these can easily be obtained from the HMRC website.

If you are a limited company director, the lender may also ask for your last 2 years full company accounts to go with the above requirements.

We would recommend you obtain the above documents before applying for a mortgage to ensure the figures are what you expect. Overall, as long as you can provide the above information most lenders will be able to consider your self-employed income.

Furthermore, we have lenders available who only require 1 years SA302 making it even easier for the self-employed. If you need any help obtaining a great deal on your mortgage contact us on 01604 870 595 today!

 

 

 

 

 

 

Should I pay an upfront broker fee?

Bad Credit Mortgage Upfront Fees

We are often asked the same question from our clients. Should I pay an upfront fee for a mortgage application if you have a bad credit history?

The answer is not always obvious, when you are desperate to remortgage or secure a mortgage on a new property it can be tempting to rush in and end up regretting paying a large upfront fee with no guarantee of a mortgage offer.

When working out if you should pay an upfront fee you should always ask 2 basic questions before parting with you if hard earned money

1) Is the fee a reasonable? A fee of under £200 is fairly normal within the industry. If they are charging over £500 you may question if it is reasonable, especially without a prior agreement in principle.

2) Is the fee refundable if the mortgage does not proceed or is declined? Personally, it would ring alarm bells if the upfront fee is non-refundable. We have had lots of clients come to us after they have lost an upfront fee of over £500 to a broker who has failed to secure them a mortgage.

Our advice would be to use a comment sense approach, if it seems high or non-refundable then it might be worth getting a second opinion. Most reputable mortgage brokers publish their fee tariffs on their website.  If you have any concerns get a comparison quote from another mortgage broker.

At Plus Financial Solutions, only change a £150 fee on a full application after your mortgage has been agreed in principle. Our upfront fee is also fully refunded if your mortgage is declined.

If you need help finding a great mortgage contact us today: 01604 328 091!