As you can probably guess from the title, this real customer experience concerns the use of Vida Homeloans for one of our success stories.
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 putting them into the adverse credit mortgage segment of the market.
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 Homeloans 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.
Whilst Vida Homeloans are not suitable for everyone, no lender, especially in the adverse segment of the market, is suitable for all borrowers but the way to look at the market is that even with some bad credit, you still have options and when you have had your mortgage a year or two, kept up your mortgage repayments and not had any other issues, putting your bad credit another year or two in the past, then we can look at a remortgage for you and find a better rate that reflects your improved circumstances.
Whatever your circumstances it pays to speak to a Whole of Market, independent Broker such as ourselves as we can find the right lender for your circumstances now.