HELP TO BUY MORTGAGES

Borrow £25,000 to £500,000.
Min 5% Deposit Required.
CCJ's, Defaults and Missed Payments.
Mortgage Arrears and DMP's
Experienced Advisers.

CONTACT US NOW FOR ADVICE AND A QUOTE

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WHAT WE DO

We Gather Information Required to Search the Market

We gather some basic information about you using our quick online form

Conduct a Whole of the Market Comparision

We will search 100’s of providers to find you the lenders who are willing to approve your mortgage

Provide full service through to completion

We will show you rates along with the monthly repayments. This will not affect your credit score. We’ll also explain any fees if you progress at this point and as long as you are happy to proceed, provide you with the full service through to completion of your mortgage being accepted

MORTGAGE LENDERS

(not all lenders displayed - not specific to your personal circumstances)

Customer Reviews

FREQUENTLY ASKED QUESTIONS

How we work?
By making an enquiry we will contact you to discuss your needs and outline if we can be of assistance. We will then request a copy of your credit file for a qualified adviser to review. After a full review of your credit profile the adviser will discuss this with you, provide advice and discuss possible quotations.

If you wish us to proceed and get a ‘Decision in Principle’ we can do so. Once we have a decision from the lender we will discuss and email you a formal quotation and outline our process going forward.
What sort of bad credit do you accept?
We have lenders that will accept clients who have had County Court Judgements (CCJ’s), Defaults, Missed payments, Debt Management Plans (DMP), Individual Voluntary Arrangements (IVA) and discharged bankruptcy. The general rule is that any bad credit needs to be registered over a year ago.
Do I need a deposit / equity?
Yes. You will need a minimum of a 10% deposit however, this is does depend on the level of bad credit that you have, so for example, if you have had CCJ’s/mortgage arrears in the last 2 years you may need to have 15%+ deposit. If you are buying a property through a shared ownership scheme we have lenders that do not require you to have a deposit. If you are buying a property through the Help to Buy scheme we have lenders that can help you providing you have a 5% deposit to put down.
How long does a bad credit mortgage take to arrange?
Once a Decision in Principle (DIP) has been done the typical arrangement times from mortgage application to offer is 1 month. Specialist bad credit mortgages do take more time when compared to standard high street mortgages, due to the extra due diligence that is required on these cases.
I have a low credit score – does that matter?
No. We have lenders some of whom are high street Building Societies that will lend to you if you simply have a low credit score, due to not being on the voters roll or not having much active credit. If you have a low credit score as a result of bad credit (CCJ’s/defaults/missed payments etc) we certainly have specialist lenders that can help.
I have been declined by other brokers – can you help?
The key to this question is why you were declined. We provide an advised service, so if we cannot help you now, we will explain why and provide advice as to what you need to do to be able to get a mortgage in the future.

Help to Buy Mortgages with Bad Credit


What is the help to buy scheme?

The Help to Buy scheme is a Government initiative set up to stimulate the housing market and help first time buyers and existing home owners purchase new build properties to live in.

This scheme is designed for people with only a 5% deposit being available. The aim by the Government is to help people get onto the housing ladder. With this scheme the Government lends you up to 20 per cent of the price of the property (40% in London) and payments on this government loan will only begin after 5 years where you will pay the interest only. Only New build properties under the value of £600,000 qualify for this scheme, with a requirement of a 5% deposit.

The 20% Government loan (40% in London) obviously reduces the initial mortgage repayments significantly. At the end of the mortgage term, or if the house is sold then the government loan needs to be repaid.

Help to buy mortgages are available from most high street lenders plus if you have any bad credit in the form of missed payments, defaults or county court judgements we have lenders who can provide bad credit help to buy mortgages.

The government has a lot of information about the help to buy scheme on its website which you can visit - www.helptobuy.gov.uk.

London Help to Buy Scheme – If you are based in London due to the higher property prices the government will consider giving you an equity loan of 40% rather than the 20% offered to the rest of the country. More information on this can be seen on here.


Bad Credit Help to Buy Mortgages

To qualify for the high street lenders you need to have a good credit score, however some clients have unfortunately had some bad credit in the form of missed payments, defaults and county court judgements. We have lenders who will provide bad credit mortgages to clients wishing to purchase a property through the help to buy scheme. This really is a specialist area and you need to speak with mortgage advisers who are experienced in this field.

It is a good idea that you get a copy of your credit report from agencies such as Experian and/or Equifax and this will show you a detailed report of all your credit commitments over the last 6 years that you have had along with your payment conduct plus any County Court Judgments/IVA or Bankruptcy that you may have had.

We have a team of mortgage advisers that can consider and advise on your individual position and circumstances as to the most suitable help to buy mortgage scheme that is appropriate for you.


Advantages of the Help to Buy Scheme

  • You only need a 5% deposit to purchase a property and this deposit could be from savings or maybe gifted from close family.

  • By purchasing a property you have potentially more long term stability whereas if you was renting you may have to move several times through no fault of your own.

  • Paying for a mortgage and the equity loan (after 5 years) maybe cheaper than renting.

Disadvantages of the Help to Buy scheme

  • If you was to staircase and pay off all or an element of the equity loan this will be linked to the current property value and may cost you more.

  • You can only staircase a minimum of 10%.

  • For the 1st 5 years you do not pay anything towards the equity loan however in year 6 you have to pay the interest at 1.75% and then the rate increases every year after that at the RPI (Retail Prices Index) measure of inflation plus 1% until the loan is paid off. This is on top of the mortgage payments you have to make.

  • The payments that you make on the equity loan are only interest payments, so the balance is not going down.

Frequency Asked Questions

What is the Help to Buy Mortgage Guarantee scheme?
This is different to the help to buy equity scheme mentioned above and this scheme closed to new applicants on 31st December 2016 but for anyone already on the scheme, a 5% deposit was a requirement. Any property would qualify for the scheme (subject to passing the lenders criteria) and the buyer would own the property with no outside influence from the Government. The Guarantee offered by the government protected the lender against any loses. The client is responsible for the monthly payments on the mortgage.

Can you remortgage a help to buy property?
Yes. You may want to remortgage to get a better rate or staircase and purchase an element of the 20% (40% in London) share the government has on the property. This is available to clients who have a clean credit profile and clients with bad credit.

Can I own any other properties to qualify for the scheme?
You are not allowed to own any other properties to qualify.

Is the scheme available for the whole of the UK?
The Help to Buy scheme is for properties based in England only however the Welsh, Scottish and Northern Ireland Governments have similar schemes, so you are best to check out their websites for more information.

How do I apply for the scheme?
You need to contact government appointed help to buy agents which are located across the country – please visit www.helptobuy.gov.uk for more information. They will access your eligibility for the scheme and this includes an affordability assessment.


Related articles from our blog:

First-time Buyers - 5 Ways to Get on the Property Ladder

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