Earlier this year we completed on a Mortgage where the applicants were looking to purchase their home under the Right to Buy scheme with a Default registered several years prior.
This application was one that bordered on being able to place on the high street as the credit issues were over 3 years old, but it failed the credit scoring with the lenders we tried. We therefore needed to find a lender who did not credit score and based their decision on criteria.
The market for Right to Buy mortgages with bad credit is currently limited and so this is one of the areas where Vida come in to their own. We were able to use the discount as the deposit and so no additional deposit was needed by the applicants.
The rate on offer was not fantastic at around 3.9% which considering the LTV it was a little on the high side, but when the options for RTB purchases with Defaults is slim we had few options and so Vida were the cheapest of those options.
On the up side, the deal was fixed for 2 years and so once that deal is up and the Default has dropped off there is a good possibility we can look to remortgage on the high street so whilst this Vida homeloans success story is a step in the right direction today, in two years, and all things being equal we will be able to look into a much better deal as a bad credit remortgage.