This Poor Credit Score Mortgage Success Story involves a customer who was given the wrong advice from another broker in regards to ‘poor credit score’.
At the beginning of October we received an enquiry from a lady who had spoken to another broker and been told they would not be able to get a Mortgage for at least 6 months but could be longer until their credit score increased.
“Poor Credit Score Mortgage, Not Possible..”
If a broker tells you your credit score is too low for a mortgage, this is a dead give away that they have no idea about obtaining a Mortgage for clients with poor credit.
Any Mortgage broker with experience in this part of the market would never worry about your credit score.
The lady was a friend of a friend of one of our brokers and they were recommended to get in touch with us to see if we could help.
We did exactly the same below as we would for anyone else.
Overview of the situation
We have to keep this section a little generic in order to protect the applicants privacy. The 2 applicants had a number of late payments scattered about over the years between them including one account showing as still being 1 month in arrears. There was also a default, albeit that was around 3-4 years old, it was only a relatively small default (below £500). The couple had a 10% deposit to put down on the property they were looking to buy.
What we did
Where the deposit is below 15% and there are adverse issues to overcome, it does mean that options are a little bit limited and so it is not surprising the original broker missed these options and was unable to help. As we do poor credit mortgages on a daily basis, we know this market better than most and we also know where we can get a case to slip through the cracks with some lenders.
We obtained copies of their credit reports so we could fully understand the arrears and late payments. Surprisingly they were a bigger issue to overcome due to guidelines set out by our governing body the FCA. The default however because of the size and age etc we were comfortable we could overcome that without any issues. We spoke to the lenders we had in mind and one of them was happy with the case in principle.
We obtained the other paperwork needed which took about a week to get together and then obtained a Decision in Principle (DIP) and then submitted the application. In less than 3 weeks (which included the valuation) we had a Mortgage offer for the customer. Less than 5 weeks after being told they could not get a Mortgage with one broker, they had a full mortgage offer in hand.
We also went above and beyond on this one…
There was an issue with their solicitor. The lady from the solicitors was not answering calls or emails, we picked up the phone to the solicitors on the customers behalf and also could not get through to that person so went on to their website to find out who we needed to speak to to get things back on track and noticed I knew one of the conveyancers from a previous place they used to work at. I emailed him and within 30 minutes he had replied and got the legal work back on track.
Summary
A lot of our stories start and end in the same way – You get told you can not get a Mortgage with poor credit, we then help you to prove them wrong. The bit that differs is your circumstances.
Without wanting to sounds like we are blowing our own trumpet, we specialise in bad credit mortgage and bad credit remortgage cases.
We know this market like the back of our hand, as your are explaining the issues we are already drawing up and ruling out a list of potential options so we can give you an indication of whether or not we can help on that first phone call.
Get in touch. Worst case scenario we agree with the previous broker and you are no worse off. Best case, you get your new home or remortgage.