Missed mortgage payments stopping me getting a residential mortgage
This “At A Mortgage Glance Guide” is the first in a series on mortgage arrears and the size of deposit or equity required in your property needed to obtain a mortgage in 2020. Although these topics have been covered before I will bring the information up to date and fit for the new decade ahead, the series will include:
- Residential Mortgages in England and Wales
- Residential Mortgages in Scotland
- Buy to Let Mortgages in England and Wales
- Buy to Let Mortgages in Scotland
- Mortgages after repossessions
- Second Charge Mortgages
Firstly can I start this concise guide on obtaining a residential mortgage with past mortgage arrears with the mandatory disclaimer: AS A MORTGAGE IS SECURED AGAINST YOUR HOME OR PROPERTY, IT COULD BE REPOSSESSED IF YOU DO NOT KEEP UP THE MORTGAGE REPAYMENTS.
I would also like to say that a good starting point if you think you may have past credit problems, is to get a fresh credit report. I recommend checkmy file which is a multi-agency credit report providers.
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This should not be trivialised but serve as a warning. Likewise, if you have experienced mortgage payment problems you should NOT be precluded from obtaining a new mortgage, particularly if it puts you in a better place.
I’m a Professional Mortgage Broker and since the great “credit crunch” crash in 2008 Mortgage Lenders have been incrementally pushing their boundaries to accommodate new mortgage customers with mortgage arrears.
The tables below show the position with regards to the size of deposit/equity needed to obtain a mortgage in England and Wales with mortgage arrears. For instance, a 95% mortgage requires a 5% deposit. A first charge mortgage is a normal mortgage secured against your property. It concentrates on mortgage arrears in the two years proceeding mortgage application, there may be greater tolerance on older mortgage arrear issues.
Nearly all of the below-named lender cannot be accessed directly by clients and must be discussed and arranged by a professional Mortgage Broker. The table below should be used as a guideline and does not constitute mortgage advice or an offer as every client circumstances are different.
| LTV/ Missed Mortgage payments | |
| 95% loan to value (5% deposit) | • Aldermore 1 (0 in last 3 months) • Buckinghamshire BS 1 (0 in last 12 months) • Saffron BS 2 (minimum credit score of 600 on Experian) |
| 90% loan to value (10% deposit) | • Aldermore 1 (0 in last 3 months) • Buckinghamshire BS 1 (0 in last 12 months) • Kent Reliance Unlimited (0 in last 12 months, and zero balance outstanding at application) • Saffron BS 2 (minimum credit score of 600 on Experian) • Vida (0 in last 3 years) |
| 85% loan to value an to value (15% deposit) | • Aldermore 1 (0 in last 3 months) • Buckinghamshire BS 1 (0 in last 12 months) • Kensington 1 (0 in last 3 months) • Kent Reliance (0 in last 12 months, and zero balance outstanding at application) • Precise 3 (1 in last 12 months) • Pepper Unlimited (0 registered 18mths, and zero balance outstanding in the last 6 months) • Saffron BS 2 (minimum credit score of 600 on Experian) • The Mortgage Lender 1 (0 in last 6 months) • Vida Homeloans 3 (0 in last 9 months) |
| 80% loan to value an to value (20% deposit) | • Aldermore 3 (0 in last 3 months) • Bluestone 2 (0 in last 12 months) • Buckinghamshire BS 2 (0 in last 6 months) • Kent Reliance (0 in last 6 months, and zero balance outstanding at application) • Hanley BS 3 (zero balance outstanding for last 12 months) • Masthaven 2 (0 in last 3 months and 1 in last 12 months) • Pepper Unlimited (0 registered 12mths, and zero outstanding in the last 6 months) • Saffron BS 2 (minimum credit score of 600 on Experian) • The Mortgage Lender 1 (0 in last 6 months) • Vida Homeloans 3 (0 in last 9 months) |
For more information of other types of Mortgages with bad credit please click here.
As you can see getting a mortgage when you have had missed mortgage payments in the past can be quite tricky hence you should always talk to a professional Mortgage Broker when looking at this type of transaction.
